Future of state companies is on the table

The rules of disengagement for the government from the operation and management of state-owned corporations and the extent of the influence governments will have over them thereafter are two of the key issues in the talks between Athens and its creditors.

The discussion is not only about which state corporations and which state holdings in other enterprises will be passed on to the Hellenic Company of Asset and Participations (HCAP). Talks are mainly centered on whether any government control can be retained over those companies and holdings, such as having a say in the appointment of executives, their broader staff recruitment and pricing policies.

“The creditors are essentially trying to cut the umbilical cord of the clientele state that generates strong unions, closed-shop professions, excessive and often inappropriate recruitment and all kinds of problems and dealings,” says an observer whose view is shared by several people.

People following the course of the HCAP since its creation in the fall of 2015 say its operation would be one of the biggest and most influential reforms in the country.