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20 January, 2000
The boost to the Greek economy from the recent 3.5 percent revaluation of the drachma's central parity against the euro will contribute to a rise in the incomes of Greek workers, Prime Minister Costas Simitis said in response to a parliamentary question on Wednesday.
"As in the case of the government's policy of stabilization and growth of previous years, which led to a rise in workers' incomes, the revaluation of the drachma will give a boost to the Greek economy, leading to a further rise in incomes," he said.
The revaluation, which means that incomes will be 3.5 percent higher when the drachma is incorporated to the euro than if the previous parity had been maintained, will also mean a benefit of 1.3 trillion drachmas for the country when the sum of deposits, investments in bonds and monetary circulation, amounting to 36.2 trillion drachmas, is converted at the new parity of 340.75 drachmas, Simitis said.
The Prime Minister dismissed criticism of a reduction in competitiveness as a result of the revaluation.
"Competitiveness today is not determined so much by price as by quality, technology, the linkage between internal and external market, infrastructure, public services and a series of other factors," he said.
Source: Athens News Agency