# PRIME MINISTER FOCUSES ON ECONOMICPRIORITIES IN FIRST SPEECH TO PARLIAMENT

 

24NOV 99

SOURCE:U.S. EMBASSY YEREVAN

 

1.(U) SUMMARY: ARMENIAN PRIME MINISTER ARAM SARGSIAN MET NOVEMBER 10 WITH MEMBERSOF PARLIAMENT TO DELIVER HIS FIRST SPEECH SINCE BEING NAMED PM.  HE FOCUSED ON THE COUNTRY'S DEMOCRATICDEVELOPMENT, ITS ECONOMIC POLICY, COOPERATION WITH INTERNATIONAL FINANCIALINSTITUTIONS, CORRUPTION, AND ARMENIA'S INVESTMENT CLIMATE.  SARGSIAN STRESSED THAT HE WILL CONTINUETHE POLICY PURSUED BY VAZGEN SARGSIAN'S CABINET, AS THIS IS THE ONLY WAY TOOVERCOME THE CURRENT POLITICAL AND ECONOMIC CRISIS.

 

PRIMEMINISTER EMPHASIZES ARMENIA'S DEMOCRATIC DEVELOPMENT

 

2.(U) THE PRIME MINISTER NOTED THAT INTERNAL POLITICAL STABILITY IS THE COUNTRY'SNUMBER ONE PRIORITY, STRESSING THAT DEMOCRATIC DEVELOPMENT IS CRUCIAL FORARMENIA.  "PROGRESS ISPOSSIBLE ONLY UNDER CONDITIONS OF A VIABLE MARKET ECONOMY DIRECTED TOWARDS APOWERFUL DEMOCRRCY AND THE WELL‑BEING OF THE INDIVIDUAL," SAIDSARGSIAN.  HE ARGUED THAT ARMENIA MUSTENTER THE THIRD MILLENNIUM WITH STABLE DEMOCRATIC INSTITUTIONS, GUARANTEEINGALL HUMAN RIGHTS ENSHRINED IN THE CONSTITUTION, ENSURING GOVERNMENTTRANSPARENCY, AND CONTINUING REFORMS IN THE FINANCIAL SECTOR, THE REAL ECONOMY,THE JUDICIAL BRANCH, AND THE SOCIAL SECTOR.

 

PRIMEMINISTER TO CONTINUE PREVIOUS GOVERNMENT'S ECONOMIC POLICY

 

3.(U) THE PRIME MINISTER SAID THAT THE ONLY WAY TO OVERCOME THE CURRENT POLITICALAND ECONOMIC CRISIS IS TO CONTINUE THE PREVIOUS GOVERNMENT'S ECONOMICPOLICY.  THIS INCLUDES PROMOTINGLONG‑TERM ECONOMIC DEVELOPMENT AND CREATING A STATE THAT FUNCTIONS FAIRLY ANDEFFECTIVELY.  SARGSIAN STATED THATTHE BUDGET FOR 2000 IS REALISTIC AND GROWTH‑ORIENTED.   REVENUE TARGETS ARE FEASIBLE AND THE COLLECTION OFREVENUES SHOULD NOT CREATE OBSTACLES TO BUSINESSES, WHILE EXPENDITURES WILL BEFOCUSED ON SPECIAL DEVELOPMENT PROGRAMS. THE PM VOWED NOT TO RAISE TAXES OR OTHER PAYMENTS TO THE STATE OVER THENEXT FOUR YEARS AND TO SIMPLIFY TAX AND ACCOUNTING SYSTEMS.  ACCORDING TO SARGSIAN, THE GOVERNMENT'SNUMBER ONE FISCAL PRIORITY IS TO REDUCE, OR EVEN ELIMINATE, THE BUDGET DEFICIT.

 

COOPERATIONWITH INTERNATIONAL FINANCIAL INSTITUTIONS AND THE WTO

4.(U) THE NEW GOVERNMENT WILL COOPERATE CLOSELY WITH INTERNATIONAL FINANCIALINSTITUTIONS, THE PM SAID.  HESTATED THAT ALL AGREEMENTS REACHED BETWEEN VAZGEN SARGSIAN'S GOVERNMENT AND THEIMF MUST BE HONORED.  HE ANNOUNCEDTHAT THE GOVERNMENT WILL SOON SUBMIT TO PARLIAMENT ALL LEGISLATION RELATED TOARMENIA'S ACCESSION TO THE WTO.  HEURGED PARLIAMENTARY LEADERS TO INCLUDE THIS LEGISLATION ON THE PARLIAMENT'SAGENDA AND TO APPROVE IT AS SOON AS POSSIBLE.

 

ANTI‑CORRUPTIONPROGRAM

 

5.(U) SARGSIAN STATED THAT HE WILL CONTINUE THE FIGHT AGAINST CORRUPTION BEGUN BYTHE LATE PRIME MINISTER.  HEANNOUNCED THAT A COMPREHENSIVE ANTI‑CORRUPTION PROGRAM WILL BE IN PLACE BY MAY2000.

 

ARMENIA'SINVESTMENT CLIMATE

 

6.(U) THE PM SAID THAT ATTRACTING FOREIGN INVESTMENT, REBUILDING INDUSTRIALENTERPRISES, AND CREATING NEW JOBS WILL BE THE TOP PRIORITIES OF THE GOVERNMENT'SECONOMIC POLICY.  HE NOTED THAT THEGOVERNMENT SHOULD DO ALL IT CAN TO RESTORE FOREIGN INVESTORS' CONFIDENCE INARMENIA.  SARGSIAN CALLED ON THEARMENIAN DEVELOPMENT AGENCY TO PLAY A KEY ROLE IN ATTRACTING FOREIGN INVESTMENTTO ARMENIA.