Making state firms flexible

National Economy and Finance Minister Kostis Hatzidakis is planning changes to the public companies of the Superfund to make them modern and competitive, with interventions on three fronts: administration, procurement and recruitment.

As he explained to his entourage, what the Superfund companies need is to have a leadership team with knowledge and qualifications, as was done at Public Power Corporation (PPC) and as is now being done at Hellenic Post (ELTA). He adds that state companies further require flexibility, speed and efficiency in procurement so that needs can be met, from the smallest to the biggest. They also need flexibility in hiring to meet needs, overcoming the inflexibility of the ASEP process for public sector hirings.

“We want to create ‘small PPCs’ with the aim of business flexibility and combating bad practices that prevent their further development,” he said on Tuesday at an Economist event. It should be noted that Hatzidakis was responsible, as energy minister in 2019, for the transformation of PPC, which has since become profitable.

The changes to public enterprises will be made with a bill that will come in the second quarter of this year and will also provide for the creation of the National Investment Fund, an investment tool similar to those operating in most EU countries, strengthening development initiatives especially in state-of-the-art sectors, new technologies and green investments.

It will be preceded by a negotiation with the European Stability Mechanism, which has a say in the Superfund, as the country’s lender. After all, this was also done for the recent transfer of the Athens and Thessaloniki water companies (EYDAP and EYATH) from the Superfund to the state.

The changes will concern the Superfund’s businesses, mainly transport companies (such as OASA), but also the Public Real Estate Company (ETAD), ELTA and some smaller ones, such as the company that runs the Thessaloniki International Fair.