The response of Greek Prime Minister George Papandreou to whether the government is determined to clash with workers’ unions on the privatization program, provided new data regarding its stance regarding Public Power Corporation.
George Papandreou said on the sidelines of the European Union summit that controversy and conflict should not be taken for granted, and hopefully a flavourable result will be achieved through negotiations.
Prime Minister’s statement is interpreted by both market sources and unions as confirmation of government’s willingness to include PPC in the privatization list, however it may be postponed for at least a year because of peculiarities.
The main problem consists that PPC had not being pay working contributions until the late 1990’s, but used them for investment in return that it would pay for employees’ pensions. The issue was not resolved when PPC became listed in 2001, as a middle course solution was promoted.
It should be noted that labor and social security will be transferred in PPC’s new subsidiary, ADESMIE, which will revert the ownership and management of the transmission system.
Regardless any reaction or legal problem, the new energy law bill would probably lead to the entry of private companies in the electricity market, as it provides that if the transmission manager does not implement network projects that were decided, they will be implemented with the assistance of private companies.
PPC had been asked for opening €1.1bn transmission projects but failed to fulfill expectations, as only 43% of projects were implemented.
George Papandreou said on the sidelines of the European Union summit that controversy and conflict should not be taken for granted, and hopefully a flavourable result will be achieved through negotiations.
Prime Minister’s statement is interpreted by both market sources and unions as confirmation of government’s willingness to include PPC in the privatization list, however it may be postponed for at least a year because of peculiarities.
The main problem consists that PPC had not being pay working contributions until the late 1990’s, but used them for investment in return that it would pay for employees’ pensions. The issue was not resolved when PPC became listed in 2001, as a middle course solution was promoted.
It should be noted that labor and social security will be transferred in PPC’s new subsidiary, ADESMIE, which will revert the ownership and management of the transmission system.
Regardless any reaction or legal problem, the new energy law bill would probably lead to the entry of private companies in the electricity market, as it provides that if the transmission manager does not implement network projects that were decided, they will be implemented with the assistance of private companies.
PPC had been asked for opening €1.1bn transmission projects but failed to fulfill expectations, as only 43% of projects were implemented.
