Greece does about-face, pledges big privatization push

ATHENS — Work was supposed to begin next year on a 7 billion euros ($7.6 billion) waterfront urban renewal project almost twice the size of New York's Central Park that could have poured nearly a billion euros into Greece's depleted coffers. The plans stalled late last year after the far-left Syriza party took power and promised to halt attempts at putting the private sector in control of state assets, both on ideological grounds and because leaders believe rampant corruption must be addressed before any sell-off.

Now, in an attempt to get a third European bailout and prevent the Greek economy from collapsing, the ruling party has done an about-face. It has pledged to fast-track the waterfront project, plus sell government assets and allow for private development of state-owned property, all to generate cash that will help reduce Greece's 320-billion-euro national debt and pay back money lent by European nations to prop up ailing banks.

Experts say the goal set by Greece's European counterparts for the country to raise 50 billion euros in privatizations and private use of state property is probably impossible — but that Greece must make a better effort than it has in the past.

"There can be absolutely no backpedaling or unwinding with the privatization effort," said Mujtaba Rahman, European director for the Eurasia Group political and business risk consulting firm. "This is about testing the government's appetite to liberalize the economy and move forward with pro-market reforms."

Big money assets that Greece could sell include state-owned stakes in Athens' new airport, energy company Hellenic Petroleum and electrical utility Public Power Corp., plus offshore oil or natural gas drilling parcels. Greece also has stock in banks valued at 7.5 billion euros, but the true value of the stake is unknown because the Athens stock market stopped trading at the end of June as the country descended into financial chaos.

The Hellenic Republic Asset Development Fund, charged with matching state assets in deals with the private sector, also has parcels of land on beautiful islands available for long-term leases and a castle on the island of Corfu, plus buildings throughout Athens and across the country.


It was formed in 2011 following demands by Greece's creditors to embark on a privatization wave, but has collected only 3.5 billion euros so far. Efforts have been complicated by constantly changing laws for asset sales, court challenges, local opposition, financial upheaval that makes it difficult to value assets, and criticism that prices have dropped so much that assets aren't worth selling.

Proponents of privatization say it can help boost investment and the economy flourish by unleashing market forces. It was particularly popular in countries like the United Kingdom in the 1980s, when Margaret Thatcher sold state-owned assets including water and gas. Though privatizations have taken place elsewhere in Europe, they've been far less prevalent.

But over the past few years during Europe's debt crises, privatizing assets has been a key demand placed on countries being bailed out. Greece notably failed to meet initial targets.

The privatizations have met with varying degrees of resistance, with some arguing that stressed governments such as Greece's are selling assets at below-market prices. Opponents also say privatization reduces job security and transfers wealth to a rich elite.

Greece's development fund doesn't publicly disclose the estimated value of assets it has to offer, but the deal it negotiated for the waterfront renewal project would give Greece 950 million euros in return for a 99-year lease on the property.

A Greek company with backing from Chinese and Arab investors would then build a huge park, a shopping center, a marina, 1,000 hotel rooms and a skyscraper apartment building on what's billed as Europe's largest undeveloped waterfront tract. Multimillion-euro yachts dock at a marina within the parcel that was built for the 2004 Olympics, but a crumbling, two-block-long building with a leaky roof bakes in the sun. It was built for athletes but never used after the games.

The project has been held up by a delay in approval from Parliament, which angers Jiorgos Kourtelis, a boat captain who sees money lost every time he drives by the unused buildings where he'd like to open a coffee shop for marina workers and boat crews.

"Right now it's a waste," said Kourtelis, 45. "They've been trying to solve this and they haven't done very much."

Conflicts between local and state authorities frequently block privatization projects. The Hellenic fund has been unable to sell an 800-slip facility nearby, in part because local officials and a businessman raised objections.

The state-owned marina hadn't paid trash collection fees to the local government for decades, Kourtelis said, so the local government was allowed to build a public swimming pool on the marina's grounds. When the fund tried to sell the marina, local officials didn't want to give up the pool and a businessman with several nightclubs on the premises didn't want to leave either.

Even if Greece could resolve the conflicts that prevent assets from being privatized, the total amount revenue would probably be in the 15-20 billion euros range, said Manos Giakoumis, chief analyst at the Macropolis economic and political analysis website in Athens.

"You have to take into account that market conditions at the moment are very unfavorable," he said. "Even if you say the value of an asset was worth 300 million euros this does not mean this is the actual value of the asset. There are a lot of real estate properties that could be privatized but no one knows the amount that can be raised from this."

Giakoumis believes Greece's need for European financing is now so dire that it will be forced to step up privatizations and deals to allow the private sector use government land and assets.

"If you asked me the same question five months ago I said it would be difficult," he said. "Now I think there is no way for the current government to continue opposing these privatizations. They need to accelerate the final process of approval."

source: philstar.com

Greece faces D-Day after 'difficult' bailout talks halted

BRUSSELS, Belgium - Greece on Sunday faced a final EU summit to clinch a deal that would stop Athens crashing out of the euro after divided eurozone ministers halted "very difficult" talks on a new bailout overnight.

Saturday's meeting of the Eurogroup, comprising finance ministers from the 19-nation single currency area, was supposed to pave the way for all 28 European Union leaders to sign a final agreement at an emergency summit the following day, billed as the last chance to keep Greece in the euro.

But skeptical nations demanded more commitments from Athens, amid claims Berlin had drawn up an "internal paper" for Greece to leave the eurozone for five years, while Finland reportedly decided not to accept any new rescue plan for debt-laden Greece.

Eurogroup chief Jeroen Dijsselbloem said the "issue of credibility and trust was discussed" by ministers, who are wary of the Greek government's commitment to enacting the new reforms which closely resemble those rejected by voters in a surprise referendum.

"We haven't concluded our discussions. It is still very difficult but work is still in progress," said Dijsselbloem after nine hours of grueling talks, adding that they would resume Sunday morning at 0900 GMT.

Finnish Finance Minister Alexander Stubb was more upbeat, despite reports that Finland's parliament has decided it will not allow the government to accept any new bailout deal for Greece.

"We are making good progress," he said.

EU Commissioner for economic affairs Pierre Moscovici, who has been among the most sympathetic to Greece's plight, said: "I am always hopeful."

'Climate not easy'

Creditor institutions have called a new reform plan from leftist Greek Prime Minister Alexis Tsipras for a third bailout worth more than 80 billion euros ($89 billion) a positive step forward after months of wranglings.

The proposals, including pension cuts and tax hikes, were approved by the Greek parliament in the early hours of Saturday despite opposition within Tsipras's ruling radical Syriza party.

But Germany's hardline Finance Minister Wolfgang Schaeuble poured cold water on early optimism at the start of the talks, accusing Athens of repeatedly reneging on its commitments.

"Definitely we cannot trust promises," Schaeuble said. "In the last months hope has been destroyed in an incredible way, even up to just a few hours ago."

A European source said the German finance ministry had even drawn up an "internal paper" for Greece to leave the eurozone for five years if it fails to improve its bailout proposals, but added it was not distributed at Saturday's meeting.

Another source close to the negotiations said the "climate is not easy" and Greek Finance Minister Euclid Tsakalotos was in contact with Athens to see how to restore eurozone confidence in Greece.

The Athens News Agency, meanwhile, reported that Greek government sources believed "some countries, for reasons that have nothing to do with the reforms and the program, don't want an agreement." The sources did not name specific countries.

Even if an agreement is reached, at least eight parliaments will have to weigh in on a final accord, with Germany's Bundestag having to vote twice.

Debt mountain

Tsipras won the backing of 251 out of 300 deputies in the Greek parliament for his reform plans, even though they are similar to the ones that Greeks rejected in last week's referendum.

Athens's creditors fear it will not keep its promises after two previous bailouts worth 240 billion euros merely added to a debt mountain, now worth nearly 180 percent of the country's GDP.

Greece dived deeper into the mire when it became the first developed economy to default on a huge payment to the International Monetary Fund on June 30, the same day as its EU bailout expired.

In Greece, there is growing alarm at capital controls that have closed banks and rationed cash at ATMs for nearly two weeks, and Economy Minister Giorgos Stathakis warned the restrictions will likely stay in place for "months."

Queueing Saturday at a cash machine in Athens, Vassilis Papoutsoglou, 52, said: "We still don't know what will happen tomorrow. Can we expect something better, or is it Armageddon?"

The Greek government hoped the parliamentary vote would give it a mandate to continue the talks with creditors -- but it also revealed the depth of opposition to fresh austerity.

Three senior government figures were among 10 MPs who abstained or voted against, and several others from the ruling leftist Syriza party stayed away, prompting commentators to predict a government shake-up.

Tsipras told parliament the plan was "marginally better" than the proposals put forward by the creditors last month and that Greeks would "succeed not only in staying in Europe but in living as equal peers with dignity and pride."

source: interaksyon.com

Low-birth Greece takes a further hit from crisis

ATHENS - In a nursery of a private maternity hospital in Athens, three mothers feed their newborns while another three babies nap nearby.

The room has only a few cots, and yet a number lie empty.

Sunk in recession for the past six years and struggling to steer its economy through painful austerity cuts, Greece now faces a fertility crisis as well.

"Benefits have been cut, the cost of living has risen, wages are down and there is great uncertainty," says Leonidas Papadopoulos, managing director of the Leto hospital and a veteran obstetrician.

"Couples think twice nowadays, not only for a second child but even for their first... It looks like there will be 10,000 fewer births next year," he adds, citing estimates drawn from state and private studies.

According to state statistics agency Elstat, the fertility rate in Greece has fallen from 2.33 children per woman in 1975 to 1.4 in 2011.

The replacement rate, the number of births at which the population remains stable, is 2.07 children.

Papadopoulos also cites a recent study by the University of Athens which found that the rate of miscarriages has doubled to four percent in the last two years.

And births have gone from 118,000 in 2008 to 101,000 last year, he notes.

"At this rate, Greece will be much smaller in a few years," Papadopoulos says.

The European Union fertility leader is Ireland with 2.05 births in 2012, followed by France with 2.01 children.

In one of its projected scenarios, Elstat sees the population of Greece dropping to 9.7 million in 2050 from 11.29 million in 2012.

A jobless rate of over 27 percent -- and over 30 percent among women -- compounds the difficulty facing couples today.

"Policies to protect maternity are easier to apply in good (economic) periods," says a high-ranking state welfare official who declined to be named.

"In the private sector, mothers very frequently do not make use of their rights because unemployment is very high," the official added.

In Greece's more easy-going civil service, staff can take up to 14 months in fully paid maternity leave -- and have been known to obtain extra time for difficult pregnancies.

In the private sector, mothers can on paper claim up to 15 months of non-consecutive maternity leave -- four of them unpaid -- not including holidays.

In reality, however, employees rarely push to obtain full maternity leave for fear of losing their job, officials note.

The Greek ombudsman's office highlights the problem in its latest report for 2012.

"Women who are pregnant or just back from maternity leave, run higher risks of...unemployment and precarious employment," the report said.

"In many cases they accept a violation of their labor rights to avoid losing their job," it noted, adding that having children was also likely to adversely affect a woman's pay and career prospects within a company.

"We even have extreme examples of couples who have been trying to have a child for years, undergo costly treatment and then want to have an abortion because the husband just lost his job," Papadopoulos said.

The 'money is so little that it cannot even cover bread and milk for the children'

Paradoxically, the axe has fallen the hardest on large families.

Until last year, mothers could claim a lump sum of 2,000 euros ($2,618) upon the birth of their third child, and the same amount for each child thereafter.

Then there were additional child support benefits of up to 4,700 euros a year, depending on income and the number of children, which were accessible to even moderately wealthy families.

These were eliminated in 2012 and replaced with a new, means-tested system.

From January 1, families are theoretically eligible for child support benefits of up to 5,880 euros -- but they would need to have six children and be on the verge of starvation to claim it.

Spain is a similar example of a once-generous welfare gone for good -- a 2,500-euro handout per baby was eliminated in 2011.

In Germany, parents receive 184 euros per month for their first two children. For the third child, the state pays 190 euros and for additional children 215 euros.

In Greece, even for couples who are not in dire straits, supporting a large family is tough.

"We cannot meet the needs of our three children and our parents are having to contribute from their pensions," says Georgia Kitsaki, an unemployed hotel worker from Thessaloniki.

Georgia and her husband Nikos, who is also unemployed after a labor accident, received a monthly jobless benefit of 470 euros until December, and child benefit of 276 euros. The latter has since been suspended.

"In any case, this money is so little that it cannot even cover bread and milk for the children," she adds.

source: interaksyon.com

Greece to Present Debt Inspectors 'Alarming' Data

ATHENS, Greece (AP) — A spokesman for Greece's new government says it will present "alarming" data on its recession and unemployment to international debt inspectors this week, in a bid to renegotiate the terms of its bailout agreements.

Spokesman Simos Kedikoglou said in a television interview Tuesday that the data would demonstrate that the current austerity program was counterproductive. He did not elaborate.

Debt inspectors from the European Commission, the European Central Bank and the International Monetary Fund are due in Athens Wednesday.

Greece is relying on rescue loans from its partners in the eurozone and the IMF to avoid bankruptcy. It is in a fifth year of recession, with unemployment topping 22 percent, roughly double the eurozone average.

source: nytimes.com

A Perfect Family Holiday Destination

Traveling to Greece is an experience that one will surely treasure for a lifetime. Greece is located in south-eastern Europe and it's very popular for its diversified beauty perfect for family holiday destination. Greece has a good reputation for its warm hospitality, attractive landscape and large variety of beautiful beaches on the mainland as well as the islands. Each year, there are more than 16 million tourists who enter and visit Greece.




Athens is the capital and largest city in Greece and the most visited place of Greece. The city of Athens has something to offer for all tastes and ages. It offers many advantages for sight seeing, visiting the world's most famous museums.

Athens has historical and cultural significance which is symbolized by many ancient buildings constructed by sophisticated style of architecture. It shows richness of ancient culture and architecture. Visiting Athens grant and offers tourists to have the chance to learn more about the historical and cultural significance of the region, particularly the famous Acropolis. Acropolis -a Greek word which means higher city.



Athens is also known for the exclusive accommodation offered to meet the expectations and needs of travelers. There are many cheap budget luxury hotels in Greece, Athens. The Athens Plaza tops the list of the hotels that travelers should visit.


Shopping in Greece is almost as fun. There are many shops that deals with the sale of modern and elegant signature clothes, shoes etc...in the streets of Mitropoleos and Ermou.


Anyone who wants a perfect ideal travel holiday destination, Greece has something to offer for every person. Just contact your travel agent that you can really rely on.