An omnibus draft law containing a second list of state-run utilities and enterprises whose publicly-owned shares will be transferred to a new holding company -- essentially a “super privatization fund” -- will be tabled on Friday in Greece’s Parliament.
An omnibus draft law containing a second list of state-run utilities and enterprises whose publicly-owned shares will be transferred to a new holding company -- essentially a “super privatization fund” -- will be tabled on Friday in Greece’s Parliament.
The development is one of more than a dozen “prior actions” currently demanded by creditors, measures left out of a previous first review of the Greek program (third bailout) in the spring.
Besides the new and even more ambitious privatization fund, the draft legislation includes EU-enforced reforms in the domestic electricity market, changes in the social security regime for self-employed professionals, merchants and craftsmen, and even hoteliers.
The state-owned shares of the separate water and sewerage utilities of the greater Athens and Thessaloniki areas, EYDAP and EYATh, respectively, the Public Power Corp. (PPC), the dominant power provider in the country, the Athens metro and a military vehicles manufacturer (EL.VO) are on the list. While private investors hold minority stakes in all of the bourse-listed companies through previous flotations, the management is still held by the state.
Although the transfer of the controlling stake to the new holding company is a noteworthy development, by Greek standards, the ownership change doesn’t mean that a privatization is certain for any of the enterprises.
Previously, the urban bus system in the greater Athens area (OASA), a perennial loss-maker, its fixed rail counterpart for the same urban region (STASY), the company managing the Athens Olympic sports complex (OAKA) and the post office (EL.TA) were named as candidates for transfer to the new privatization fund.
Conversely, two significant companies missing from the list are the Independent Power Transmission Operator (ADMIE) S.A and the Hellenic Aerospace Industry (HAI), a defense aviation unit.
In terms of the “political costs” involved for the leftist SYRIZA government, its ministers and parliamentary rapporteurs must now allay fears by the party's own deputies in Parliament and by the tenured workforces at the state-run companies that labor rights will not be watered down and that the state’s control will not be lost.