End of line for Olympic
Brussels is poised to refer Greece to the European Court today over demands that the government recover 540 million euros from Olympic Airways – the now-defunct national carrier – in illegal support during the 2002-2004 period. Sources say the European Union will argue that this sum primarily represents an evasion of taxes and social security contributions on the part of the airline but also other kinds of indirect support ranging from the inflation of assets to government subsidization of aircraft leasing. The 540 million euros comes on top of the 160 million euros in illegal benefits the government gave to OA between 1998 and 2002. The government must recover the 160 million euros from OA or face the prospect of daily fines from the EU. The decision was rather unexpected as the EU had originally given the impression that it was not in a rush to make a move regarding the additional sum. It is a move that hints at the liquidation of the carrier (the total sum of 700 million is not expected to be recovered) and the launching of a new one on a sounder basis.
