NICK DEARDEN - Greece is for sale – and everything must go
it makes no sense to sell off valuable assets in the
middle of Europe’s worst depression in 70 years.
I've just had sight of the latest privatisation plan for Greece. It's been issued by
something called the Hellenic Republic Asset Development Fund – the vehicle
supervised by the European institutions, which has been tasked with selling off
an eye-watering €50 billion of Greece's ‘valuable assets’.
The fund was a real sticking point because the European
institutions wanted to move it to Luxembourg, where they could keep a better
eye on it. Anyhow, it's still in Athens, and this document, dated 30 July,
details the goodies on sale to international investors who fancy buying up some
of the country.
We've attached
it to this blog to give a flavour of what’s up for grabs at the moment.
Fourteen regional airports, flying into top tourist hubs, have already gone to
a German company, but don’t panic because stock in Athens airport is still on
the table, as well as Athens' old airport which is up for a 99 year lease for
redevelopment as a tourism and business centre.
Piraeus and Thessaloniki ports are up for sale – the former
case has caused the chief executive to resign and industrial action has begun.
A gas transmission system looks likely to be sold to the government of
Azerbaijan, but there’s still a power and electricity company, the postal
service, a transport utility which allows trains and buses to run, the
country’s main telecommunications company, a 648 km motorway, and a significant
holding in the leading oil refiner, which covers approximately two-thirds of
the country’s refining capacity.
Holdings in Thessaloniki and Athens water are both on sale –
though public protest has ensured that 50% plus 1 share remains in state hands.
Nonetheless, the sale will mean that market logic will dictate the future of
these water and sewerage monopolies. Finally there are pockets of land,
including tourist and sports developments, throughout Greece.
A second document, also attached, details the short-term
work programme of various government ministers, detailing actions they must
take in order to add value to these assets. This includes introducing toll
booths on roads to licensing casino rights to declaring sites of archaeological
interest. The document begs the question as to why government ministers are
even needed, it would surely be easier to cut them out of the equation
altogether and let EU institutions directly administer the country.
Why does this matter? First because it makes no sense to
sell off valuable assets in the middle of Europe’s worst depression in 70
years. Those industries could generate revenues to help the Greek government
rebuild the economy. In fact, the vast majority of the funds raised will go
back to the creditors in debt repayments, and to the recapitalisation of Greek
banks.
So the privatisations aren’t to do with helping Greece. The
beneficiaries are corporations from around the world, though eyebrows are
particularly being raised at the number of European companies – from German
airport operators and phone companies to French railways – who are getting
their hands on Greece’s economy. Not to mention the European investment banks
and legal firms who are making a fast buck along the way. The self-interest of
European governments in forcing these policies on Greece leaves a particularly
unpleasant flavour.
Most important is the inequality this will entrench in Greek
society for decades to come. Of course the fact that the state currently holds
these assets is no guarantee of democracy. Clientelism is rife in Greece. But
the answer is transparency and democracy, just as German citizens are currently
trying to take back energy companies into collective ownership because they see
this as a prerequisite for fair pricing and supporting renewable energy.
What won’t help is flogging off monopolies
to private corporations who have no interest in Greece’s people. Workers will
be sacked and their conditions made worse, while the elite of Europe profits.
Greece’s government will have lost the ability to make its society function in
the interests of ordinary people. But then, I suspect that’s the point.
This article was originally published at globaljustice.org.uk
