Bid to break logjam
In an effort to break the logjam in the economy, the government yesterday introduced a new privatization package, saying that it would sell shares in state-controlled companies such as Hellenic Telecommunications Organization (OTE) and the postal service (ELTA). National Economy and Finance Minister Nikos Christodoulakis yesterday announced that within 2002 another 8 percent of OTE’s shares would be sold, bringing the State’s holding down to 33 percent. Also, 20-25 percent of ELTA would be privatized and shares sold in Hellenic Tourism Property, which is also scheduled for listing this year, with the State planning to sell about 25 percent in the Greek National Tourism Organization’s (GNTO) asset management company. Christodoulakis also stressed the need for fiscal reform, which has been overlooked in the euphoria that has followed the country’s entry into the eurozone. Sources say that many ministries have been raising demands for extra funding from the 2002 budget. Christodoulakis said that the budget proposal had foreseen what is needed to maintain a high growth rate while at the same time retained flexibility in order to react to difficulties such as unexpectedly bad weather. In addition to the share sales, the government is trying to breathe life into the economy by pushing ahead with tax and social security reform while also presenting a new development law. Working groups looking at tax reform are expected to present their findings by the end of March so that the draft bill can be written. The new tax system will apply from January 1, 2003. Christodoulakis noted that with regard to the social security reforms, which began to be discussed by the government, labor and employers’ representatives this week, the government will seek to secure enough funds to keep the social security system viable. At the same time, the Hellenic Investment Center is participating in the drafting of a new development law to attract investments that will contribute to maintaining a high growth rate and curbing unemployment. Christodoulakis raised the issue of investments with his German counterpart, Hans Eichel, who was in Athens yesterday. The two said that the sectors of tourism, banking, telecommunications and shipbuilding were attractive for Greek-German cooperation. Eichel noted, though, that a basic precondition for German investments were the return to stability in the Balkans. Olympic employees, meanwhile, yesterday called a three-hour work stoppage for March 20 and a 24-hour strike to be held at a later date. Their federation, OSPA, rejects the government’s reform plan, which was made public last month after the privatization bid collapsed. Among other things, the plan calls for incentives for about 2,000 employees to take early retirement.
