-Caveat Lector-

And just when we might think the Iraqis had a corner on the Middle East
trouble market ...

"There no discipline, no hierarchy at all, and people are still carrying
the mentality of the village."
<< I was being led to believe a village is all it takes ... A<>E<>R >>

>From Christian Science Monitor

FRIDAY, FEBRUARY 26, 1999


WORLD

How Kurd's arrest rattles Greece

• The Feb. 15 arrest of PKK chief threatens the Simitis government, and
Greece's bid to join euro.

Ilene R. Prusher
Special to The Christian Science Monitor

ATHENS

Greece had just begun finding its new place in the world.

The Athens Stock Exchange was skyrocketing, the swollen public sector was
shrinking, and the government was making strides toward membership in the
European Monetary Union (EMU).

Even its foreign policy was winning fans in Western capitals, a change from
the days of Socialist Prime Minister Andreas Papandreou.

<Picture>BACKSLIDING? Prime Minister Simitis made strides in controlling
inflation and easing tension with Turkey. Then came the Ocalan affair.
(YIORGOS KARAHALIS /REUTERS)
------------------------------------------------------------------------


Then came Abdullah Ocalan. Turkey's capture of the Kurdish rebel leader
last week in Nairobi, Kenya, where Mr. Ocalan had been sheltering in the
Greek Embassy, has left the Greek government open to accusations from
abroad that it supports terrorists.

It has also led to charges at home that it proved incompetent in managing
affairs of state, and a general uncertainty about its ability to continue
broad economic reforms that will open the door to an elite club of European
countries using the euro next year.

It may also imperil the government of Prime Minister Costas Simitis. Mr.
Simitis's ultimate goal of joining the EMU has set him on a collision
course with entrenched labor unions. Known here as a pragmatic technocrat
who avoids the excesses of the late Mr. Papandreou - but who also lacks his
charisma - Simitis's left-wing PASOK party had already been lagging in
polls behind the opposition party, New Democracy.

<Picture>RIPPLES IN EUROPE: Kurdish protesters affixed a photo of
just-arrested rebel chief Abdullah Ocalan to crest of the Greek consulate
general in Berlin last week.
(HANS EDINGER /AP)
------------------------------------------------------------------------


Now, even after Simitis fired three key Cabinet ministers last Thursday in
attempt to atone for the Ocalan scandal, the matter has deepened a fissure
in his own party between his reformist wing and the more hard-core
Socialist Left. There had already been talk that his party could lose this
June's elections for the European Parliament, and growing expectations that
a rival to Simitis may emerge at a party congress next month. Analysts now
estimate that Simitis could be forced to face early elections, which were
not scheduled to be held until September 2000.

"I thought he was going to survive until yesterday," says Angelos Stangos,
the editor of Vima, the largest Sunday paper, speaking in an interview last
Thursday, when the extent of Greece's involvement in harboring Ocalan
became clear.

Stangos, who is known to be close to Simitis, says Greeks are so deeply
disturbed by the mishap because it casts skepticism on the country's
attempts to reposition itself as a well-managed European democracy.

"This is proof that the state machine doesn't work. They let people who
don't have any official position deal with hugely sensitive matters. That's
a free-for-all," Stangos says, referring to pro-Kurdish Greeks who smuggled
Ocalan into Greece on their own accord, and then prodded the government to
find him a haven. "There no discipline, no hierarchy at all, and people are
still carrying the mentality of the village."

In reality, Simitis can tout many successes since he began his reform plan
to overhaul Greece's position as the poorest EU member and its only country
whose economy couldn't match standards for using the new euro.

Inflation, which soared to around 20 percent during the 1980s and early
1990s, has now been brought down to about 3.7 percent. State industries are
being privatized, and wage increases have been severely curtailed.

But the rightist opposition says Simitis and his PASOK party have not moved
quickly and deftly enough to privatize the economy and join the EMU.

"Just a few years ago, they were Socialists, and now they want to follow a
liberal policy and at the same time, keep the same principals of the past,"
says Vassilios Maghinas, a leading parliamentarian for the New Democracy
party. "They don't really believe in a free market economy - they're just
acting on pressures to change."

In foreign affairs, the future looks even hazier. Simitis had been trying
to reduce tensions with Turkey by moving Greek Cyprus not to deploy S-300
missiles on the island late last year. And he had ordered his secret
services to have Ocalan removed from Greece out of concern that Turkey's
knowledge of his presence here could lead to war.

But Turkey says Ocalan told his interrogators this week that Greece gave
military aid to his Kurdistan Workers Party, or PKK, providing them with
rockets and other ammunition.

Turkey's occupation of northern Cyprus, Turkey's new strategic alliance
with Israel, and Turkey's incursions into northern Iraq in a new campaign
against Kurdish rebels there have Greece fearing Turkey is becoming a
regional bully.

"We believe that Turkey wants to change the status quo," says Deputy
Defense Minister Apostolakis Dimitrios. "They don't recognize our borders
and we consider it a threat to Greek sovereignty."

Greek military spending is already the highest in Europe as a percentage of
gross domestic product.

Along with dread of Turkey capitalizing on Ocalan's capture at Greece's
expense is some resentment of the US, Turkey's close ally and a key actor
in securing Ocalan's capture. During the cold war, relations between the US
and Greece were rocky when Premier Papandreou was friendly toward the
Soviet Union and Libya. Though diplomatic relations have improved, trade is
sparse and US investment in Greece is the lowest of any EU country.

"What we're trying to do here is to rebuild the US-Greece relationship,
because it went through terribly difficult times in the 1970s and 80s,"
says Nicholas Burns, US ambassador to Greece. "In the '70s and '80s ...
because of our support for the military dictatorship here between 1967 and
1974, anti-Americanism rose, and Papandreou government embarked on a
Socialist economic philosophy which drove a lot of American companies out.
And consequently, our economic relationship - as well as our political
relationship - really plummeted."

In some ways, the relationship has yet to be fully repaired, and the full
diplomatic fallout from Ocalan has yet to be seen.



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