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Greek government opens way for privatization of state-run companies

The Greek government opened the way for the restructuring and privatization of state-run defense and gas companies, amidst continuing protests Thursday over austerity measures and structural reforms introduced to address a severe debt crisis.

The Interministerial Committee for Asset Restructuring and Privatization decided to assess the available options for the management of its holdings in Public Gas Corporation S.A. (DEPA) and Hellenic Defence Systems S.A. (HDS), the Finance Ministry said.

The decision was made as the Greek government focuses in 2011 on structural reforms to slash expenses and increase revenues through the restructure and partial privatization of loss-making public companies and the better management of state assets.

The aim is to slash the budget deficit, which stood at 15.4 percent of GDP in 2009 and threatened Greece with default last year, to less than three percent by 2014.

The implementation of this harsh austerity and reform program to exit the crisis and return to growth is supported by International Monetary Fund and European Union, but has triggered an ongoing wave of protests and strikes in Greece.

Employees of all public mass transport services in Athens held another 24-hour strike on Thursday, defying a court order that deemed their mobilization illegal and warnings by the Transport Ministry of disciplinary actions.

Labor unions and employees to a plan promoted by the government to restructure the loss-making transport companies that cost taxpayers more than one billion euros ( 1.3 billion U.S. dollars) in losses each year, according to estimates.

The government plans to increase fares in buses, trains and the subway by 40 percent starting from February and transfer personnel to other agencies.

Protesting transport services workers were joined by teachers who also protested austerity measures, particularly cutbacks and restructuring plans in the education sector.

Civil servants claim that due to cuts in salaries and allowances and tax hikes introduced in 2010 to tackle the crisis, their average income has decreased by 25 to 35 percent.

The Cyprus
 News Agency


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