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Τετάρτη 10 Αυγούστου 2016

Opposite directions


Opposite directions

ANGELOS STANGOS

It was less than a month ago that Prime Minister Alexis Tsipras said in an interview with Skai TV that whatever helps create jobs can be considered leftist policy.
His comment was interpreted as a change in direction, especially with regard to the country’s privatization program.
It was also seen as a message to his ministers and SYRIZA members.
It would perhaps be presumptuous at this stage to question how genuine Tsipras was being, but we can say with some confidence that if he was intending to deliver a message, the people who were its intended recipients have not received it yet.
There are very strong indications that this is the case. One example is Shipping Minister Theodoros Dritsas’s recent attempt to change the terms of the contract between Greece and Cosco for the Piraeus Port Authority (OLP).
This prompted other ministers to intervene to rectify the situation. Dritsas appeared to be moving in the opposite direction from the one marked out by Tsipras, even if it is very different to what he heralded when in opposition.
It appears Tsipras realizes that there has to be growth for there to be new jobs or that for there to be growth there has to be new private investment in Greece.
It is not at all clear that some of his ministers see things the same way. How they perceive growth and job creation is something of a mystery.
This raises the question of how the prime minister will proceed when the people he has appointed as ministers refuse or are unable to follow him along this new path.
This back-and-forth that is going on means that things are not progressing. Rather than being at a standstill, the country should be moving forward rapidly and escaping suffocation.
The failure to move forward does not just relate to issues that are linked to the economy.
The effort to strengthen statism and moves to create an impervious regime will not give the country a chance to breathe.
The same goes for the government’s tendency to show tolerance in the face of actions by self-styled anarchists, such as squatting, vandalism and attacks against the Church.
No economy can improve in such an environment.
At the moment, the prime minister appears to be following the strategy of letting all the flowers bloom, given that he displays tolerance and does not intervene to stop this instability.

He may be waiting for SYRIZA’s congress later this year in order to perform a clean up operation. His inaction so far, though, is not a very encouraging sign.

Cosco to clinch majority stake in Piraeus port ahead of further investment

Cosco to clinch majority stake in Piraeus port ahead of further investment

ILIAS BELLOSChinese giant Cosco is due to take on a majority stake in Piraeus Port Authority (OLP) on Wednesday concluding a process that began more than four years ago.

Representatives from Cosco, OLP and Greece’s privatization fund, the Hellenic Republic Asset Development Fund (TAIPED), are due to mark the occasion by sounding the opening bell for today’s trading session on the Athens Stock Exchange.

Cosco is due to pay 280.5 million euros to TAIPED to secure a 51 percent stake in OLP. It will also deposit another 88 million euros in an escrow account for another 16 percent in the company. The extra shares will be transferred when Cosco completes the investment it has committed to as part of the deal.

The firm has committed to investing almost 300 million euros in the port by 2020 before it can increase its holding in OLP. The majority of the amount in question is due to be spent on improving the infrastructure for cruise ships and passengers. The new owners also want to spend 55 million on upgrading the ship repairing facilities at the port.

The Chinese firm indicated in July, when Prime Minister Alexis Tsipras visited China, that it would invest 650 million euros, rather than the 350 million originally agreed, in Piraeus.

TAIPED will continue to own 23 percent of the port authority until the Chinese giant obtains the 16 percent share that has been set aside.

The new executive board is due to convene in the coming days. The new 11-member board is expected to be made up of seven Chinese and three Greeks. The mayor of Piraeus will retain his position on the board. The current chairman and vice chairman are also expected to remain.

It is expected that Cosco chairman Wan Min will be appointed chief executive officer (CEO), while the man who currently heads the Chinese firm’s subsidiary at the Piraeus container terminal, Captain Fu Cheng Qiu, will be made vice president and managing director.

Wednesday's transaction was cleared by the Greek Parliament on June 30, when 223 MPs voted in favor of the agreement that will see Cosco take over a majority stake in OLP and responsibility for the running of the port.