Greece to Proceed With Piraeus Port Privatization
Source: Wall Street Journal
Greece will proceed with the privatization of the countrys main port of Piraeus, Greek Finance Minister Yanis Varoufakis plans to tell his eurozone counterparts at a meeting in Brussels on Wednesday, backtracking on previous statements from the new leftist government that had pledged to freeze the deal, senior Greek government officials said.
The U-turn comes as Greeces new leftist, Syriza-led coalition government scrambles to reach a financing deal with international creditors that will keep the country from running out of cash in coming weeks and potentially defaulting on its debts. Since being voted into power just over two weeks ago, the new government has set a collision course with its European creditors by promising to roll back many of the austerity measures and reformssuch as privatizationsthat Greece has undertaken in the past five years to secure billions of euros in aid.
Selling the states 67% stake in the Piraeus Port Authority is one of the biggest divestments of an ambitious privatization plan agreed to by the previous conservative government with the so-called troika of creditorsthe European Union, the European Central Bank and the International Monetary Fundfor the debt-ridden country to continue receiving bailout funds. It is also one of the more symbolic: The port of Piraeus, just a few miles south of the Greek capital of Athens, is the de facto home of Greeces giant shipping industry and is one of the largest ports in the Mediterranean.
The Piraeus sale is on. It will proceed as planned, a senior finance-ministry official told The Wall Street Journal.
Read more: http://www.wsj.com/articles/greece-to-proceed-with-piraeus-port-privatization-1423573999
PoliticAverse
(26,366 posts)fasttense
(17,301 posts)the Wall Street Urinal was all so concerned about.
Seems the new far left government still wants to sell off Greece's thriving port operations to Chinese Cosco (who does NOT play nicely with Labor Unions). This is the Walmartization of Europe.
Tell me again how exactly China is a communist country?
Kelvin Mace
(17,469 posts)villager
(26,001 posts)n/t
EEO
(1,620 posts)FLPanhandle
(7,107 posts)These guys aren't stupid.
Much of their tough talk is to set a favorable beginning bargaining position, but as long as they are staying in the EU, and want to continue to borrow money, they will be making compromises from that initial bargaining position.
Did anyone here really believe otherwise?
Kelvin Mace
(17,469 posts)claiming they will adhere to liberal values is lying to us.
muriel_volestrangler
(101,368 posts)From 2 weeks ago:
"Allow me to say one thing. Firstly, personally, and as a finance minister, I can assure you the particular investment in the port of Piraeus that has been unfolding in the past few years has my full support, and I would like to be part of an attempt to attract to this country forward directing investment that has a similar effect on raising productivity and competitiveness. But the privatisations that have mostly been pursued over the last few years have been a kind of fire sale in the middle of a deflationary process where essentially, assets that are potentially very valuable to this nation are being sold off during a deflationary crisis for peanuts, and even those peanuts are being thrown into a black hole of unsustainable debt."
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=1002327
From today, after the WSJ report in the OP:
Greece is no longer discussing the privatisation of the country's two biggest ports in Piraeus and Thessaloniki, its government spokesman said on Wednesday.
"We are not discussing any further sale or privatisation of Piraeus Port or Thessaloniki port," Gabriel Sakellaridis told Greek television.
China's Cosco managed two of Piraeus port's cargo piers and had been shortlisted along with another four suitors as potential buyers of a 67 percent stake in the port under last year's privatisation scheme.
But the new government of the left-wing Syriza party which took power last month said it was cancelling the sale.
http://www.reuters.com/article/2015/02/11/eurozone-greece-privatisation-ports-idUSL5N0VL1SR20150211
JackRiddler
(24,979 posts)Possible bit of sabotage from within the ministry, speculative overreach (wishful thinking or disinformation) by WSJ.
Greek press, next day: Athens says no more talk of selling Piraeus port
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_11/02/2015_547158
Reuters, next day: Greece says still intent on halting privatization of ports
http://www.channelnewsasia.com/news/business/international/greece-says-still-intent/1652528.html
In coming months the bullshit on Greece is really going to fly. Check all stories twice - except for those telling you hundreds of thousands of people are in the street in Athens and Europe in support of the Greek move to end austerity. Those are true!