Agnes Lovasz and Paul Tugwell write:\u00a0 Greece will continue with efforts to privatize the country\u2019s largest port and regional airports as it seeks ways to attract investment for other state assets, Economy Minister George Stathakis said, in a government concession in talks with its creditors.<\/p>\n
A sale of the Piraeus Port would be a reversal on the part of Greece\u2019s Syriza party-led government, which had earlier pledged to block such moves. As part of ongoing negotiations to unlock aid to Europe\u2019s most-indebted nation, Greek\u2019s European creditors have asked for more specific policy proposals in areas including labor market deregulation, a pension-system overhaul, sales tax reform and privatization of state-held assets. Still, Stathakis said the government doesn\u2019t plan to sell other assets at the moment.<\/p>\n
The Piraeus Port sale \u201cis part of the bailout negotiations,\u201d and the fact that the government \u201cagrees to privatize the port is a compromise to creditors,\u201d government spokesman Gabriel Sakellaridis told reporters in Athens today.<\/p>\n
A venture led by Fraport AG won the right in November 2014 to use, operate and manage the 14 regional airports after it offered 1.2 billion euros ($1.4 billion) for 40 years and promised to pay an annual, guaranteed leasing fee of 22.9 million euros. Fraport also pledged to make 330 million euros in investments over the next four years. Greece is talking to Fraport and a decision should be reached \u201cvery soon.\u201d<\/p>\n
It\u2019s \u201cdefinite\u201d that Greece won\u2019t proceed with selling other state assets on a list that had been agreed on by the previous government such as water companies, the post office or Public Power Corp, Stathakis said. \u201cWe\u2019re trying to work on a different model than privatizing to attract capital and investment such as for the country\u2019s railways and other ports\u201d and Greece is looking at \u201calternative options to 100 percent privatization.\u201d<\/p>\n
The sale of land at Hellenikon, site of Athens\u2019s old airport that is Europe\u2019s largest unused tract of urban real estate, \u201cis an issue under discussion,\u201d Stathakis said.<\/p>\n
Greece\u2019s most indebted state is locked in talks with its creditors over the terms attached to its 240 billion-euro bailout. Uncertainty over the country\u2019s future in the euro area has triggered a liquidity squeeze, which pulled the economy back into a double-dip recession.<\/p>\n
Stathakis said. \u201cThe gap between Greece and its creditors has been closed on most issues and while there are some areas of concern to do with the pension system and reform of value-added taxes, there are ways to bridge this difference and come to an agreement.\u201d<\/p>\n
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