Lafazanis: Financing agreed to extend Russian pipeline to Greece - Deal to be signed in St.Petersburg

The financing of the extension of a pipeline carrying Russian gas from Turkey to Greece has been secured and a deal could be signed this month, said a report from France24 quoting Energy Minister Panagiotis Lafazanis. The report, quoting Lafazanis' statements in an interview with Russian public television, notes that he had had a series of very productive meetings in Russia, which is ready to participate in the financing. Lafazanis said there is "enormous interest" among Greek companies for an extension of the Turkish Stream gas pipeline.

Moscow axed its South Stream gas pipeline to southeastern Europe in 2014, even though construction had already begun, as relations with the EU hit a nadir over Russia's role in the Ukraine conflict. Instead Moscow announced a pipeline to Turkey, which should be ready in December 2016, and told European nations they would need to build links to get the gas.

Ever since the radical-left SYRIZA party swept the elections in January, Moscow has been courting Greek Prime Minister Alexis Tsipras, a former communist who has made no secret of his desire for closer ties with Russia and criticised the EU sanctions imposed over Ukraine. Tsipras is struggling to unblock EU and IMF rescue funds and Russia has dangled the possibility it will help finance the project, which it has alluded will generate revenue that Athens could use to help pay off its mountain of debt.

     "We already know that it will be a Greek public company which would be in charge and furthermore, the question of financing is already resolved: the infrastructure costs are estimated at around two billion dollars," said Lafazanis.

The minister said a deal could be reached by the three-day Saint Petersburg International Economic Forum that begins on June 18. Russian media have said that other countries interested in linking up the pipeline in Greece are hesitant for fear of angering the European Union.

Source: France24

Russians still interested in acquiring privatised Greek rail companies

Russian Railways (PZD) are still in talks with the Greek government on the possibility of submitting bids in the privatisation of related Greek state companies, Russia's railway boss Vladimir Yakunin said earlier this week. Talking to the Public Chamber of the Russian Federation - a sort of alternative "Parliament of experts" - Yakunin was quoted by Th. Avgerinos from ANA-MPA as saying that these companies included the Greek trains operator TRAINOSE, the rolling stock repair and maintenance company ROSCO and the port of Thessaloniki.

Yakunin stressed that "nothing had gone quiet" and that the Greek Prime Minister Alexis Tsipras had requested a meeting with him during his recent visit to Moscow, during which he indicated that the Greek side was also interested in such cooperation.

Greek Gov't & EBRD sign 500mln funding agreement

Greece and the European Bank for Reconstruction and Development (EBRD) signed an agreement on Thursday for the distribution of funds up to 500 million euros annually to support reforms and a return to economic growth.

The agreement was signed in Tbilisi, Georgia, between Economy, Infrastructure, Shipping and Tourism Minister George Stathakis and the bank's representatives.

EBRD's shareholders have voted for the Bank to invest in Greece until the end of 2020. The organisation will deploy its expertise in attracting and encouraging foreign and domestic investment, strengthening the role of the private sector and deepening regional integration. Specifically, the EBRD will help address the issue of insufficient capital for Greek private companies, especially small and medium-sized enterprises. This is a key barrier to growth, where the EBRD can contribute significantly with its equity and commercial debt products.

The EBRD will also engage, where possible, in expanding the private sector's role in infrastructure and energy. Greece is a natural trade and investment partner for many countries in south-eastern Europe where the EBRD has a strong presence. The Bank will support investments and policy measures which are conducive to integration.

EBRD President Sir Suma Chakrabarti said:

     "We are very happy to be able to apply our particular expertise in the private sector to the Greek economy. The EBRD will be fully engaged to make the most of its temporary mandate in the country. By concentrating on the private sector we are seeking to actively contribute to the reform and recovery of the country's economy."

A Greek Economy ministry announcement said the agreement was of great importance for the Greek economy as it could contribute significantly towards economic recovery in the country and boosting both liquidity to Greek enterprises, mostly small- and medium-sized, and employment.

The EBRD also intends to open an office in Athens.

ANA/MPA

Russia invites Greece to join the BRICS-sponsored growth bank

Russia’s Deputy Minister of Finances Sergei Storchak has apparently invited Greece to join the new growth bank, comprised of Brazil, Russia, India, China and South Africa (or otherwise known as the “BRICS”).

Storchak, who spoke to the Athens-Macedonia News Agency earlier this week, argued that the goal of the BRICS-sponsored growth bank is to secure their credit autonomy and at the same time compete with the IMF and World Bank.

It should be noted that the bank currently has 50 billion dollars in capital, with a further 100 billion-euro foreign exchange reserve.

The Russian claims that by joining the venture, Greece will be able to fund a series of development projects. He also said that the country’s ties with Russia could be strengthened if the ruble be used for payment of goods and services.

Will Greece seriously consider the idea? No one knows, but Greek Prime Minister Alexis Tsipras has arranged to visit St. Petersburg in Russia between June 18th-20th, and from what is being reported he will be meeting with Russian President Vladimir Putin.

ANALYSIS: 10% Flat Tax! Shock Economics or the Key to Greece’s problems? The Current Situation

Although the Greek economy is classified as an advanced high income economy, this has done very little in convincing its Eurozone partners, creditors and especially the markets, that Greece is anything but ‘’fiscally undisciplined’’. Since 2009, the country has been following an externally imposed policy of fiscal austerity, spearheaded by the ‘’fiscally disciplined’’ Germany.

Exclusive to HellasFrappe

From Vasillis (Basil) Tomaras

Leading economists, business leaders, fund managers and even the current SYRIZA government, all agree that policies have done very little to improve the situation of the Greek people. The levels of unemployment levels, the prime indicator of the effect austerity has on the ground , are/is still at an appalling 26% and a vast majority of which is youth as half of the population between 15-24 is currently unemployed.

The ‘’welfare state’’, the myth and the real causes

A common and dominant narrative about Greece and the causes of the crisis is that it is a generous over- bloated welfare state. According to the OECD’s statistics for social expenditure over GDP, this is not the case:

The full Greek state expenditure is at close to 48.7%, which is marginally higher than the EU-15 average (estimated at 0.6%). However, budget deficit is approximately 4.3% higher than the EU-15 average. What does this all mean? In simple terms, it’s not state expenditures that heightened the economic crisis in Greece but rather state revenue, or to be more precise a lack thereof.

Traditionally, tax evasion in Greece has been described as a ‘’national sport’’ by even the highest ranked government officials. The problem of corruption and tax evasion in Greece is well known and is influenced by many factors.

Austerity, the real shock economics!

Without a doubt, the impact of austerity has been felt in all aspects of life and in all sectors of the economy: 

• Recession with no end in sight: The continuous drop in GDP, the lowest in the entire post-war period, led to the lowest reduction in domestic demand and consumption. Ensuing decrease in production led to the loss of thousands of jobs in the private sector (at one point even numbering in the thousands daily).
• Rapid labour decline: This resulted from the steep increase of insecure and uninsured work, degrading wages, decline of workers’ rights and also from the deregulation of workers accords.
• ·The slow killing of the middle class: Traditionally, the middle class economy consisted of small and medium sized businesses that were generously funded in the past by the banking sector which had no apprehensions about granting generous loans and overdraft lines with minimal collateral and oversight. After these financial institutions were respectively starved of funds, a lethal combination of liquidity depletion, decline in consumption and introduction of ‘’emergency’’ taxes, resulted in most of these middle income enterprises subsequently closing down (65.000 in 2010 alone).
• Migration push factors and ‘’brain drain’’: In contrast to the usual yellow press publications of the ‘’lazy’’ Greek, the truth is that the workforce in Greece is among the best educated in Europe and the most productive, actually surpassing their German counterparts. While those studying in academic institutions abroad were discouraged from returning to Greece after graduating, many already educated and skilled professionals also left the country.
• ·Homelessness: Along with the pre-crisis immigrant homelessness which was largely unreported, newly austerity borne destitute also joined their ranks. People and families with medium and higher educational backgrounds who previously belonged to the middle class. Notably, homelessness increased 25% between the period 2009-2011 (over 20.000 by NGO estimates).
• ·    Record level of suicides: One can only feel sorrow and sympathy for Dimitris Christoulas, a retired pensioner, who publicly committed suicide in early April 2012 at Syntagma square, just outside the Greek Parliament, leaving his family in complete sorrow. This gentle, cultured and above all sane man cited in a politically fueled suicide letter, that he preferred a dignified end to his life in lieu of an undignified existence after government austerity measures slashed his pension. Sadly, he is not the only victim of this crisis, as austerity driven suicides skyrocketed as much as 40% between the period 2010-2011.      
• ·    Disintegration of the health services: The health care system also suffered greatly, through reduced access to health care services following massive cuts. As a result, HIV infections increased by 52% between the periods 2010-2011, while drug prevention centers and psychiatric clinics shut down after tough budget cuts.

The Shadow economy of Sandanski and how Bulgaria is benefitting from the crisis

Greece and Bulgaria have very different social and economic environments. In the interest of not confusing the reader with national quantitative data, I will rather limit indication to a bite size measure by making reference to Sandanski.

To most Europeans and Greeks alike, the Bulgarian border town of Sandanski may not be on their radar, but to the inhabitants of Northern Greece, the town is very well known. This is due to the fact it has benefited extremely well from the Greek financial crisis. Thousands of Greek vehicles cross the border every day to fill up on gas since it is 40% less expensive; Housewives do their grocery shopping; Dentists, many of whom have relocated from the capital Sofia, have opened up offices in Sandanski to service Greek patients bearing Euros; etc.. Additionally, scores of Greek pensioners made a permanent move to Sandanski simply because their reduced pensions were not enough to live on in Greece.

The most notable migration trend to Sandanski of all are Greek businesses. The traditionally bustling Northeastern Greek town of Serres, 50Kms south of the border has become a shadow of its former past as many businesses moved north to Bulgaria. According to Dimitris Giannakis, the president of Serres’ Chamber of Commerce and industry, at least 5.000 Greek businesses were struck from the registry over the past five years. It’s painfully obvious where they moved to (according to the Bulgarian Register these estimates could be as high as 8.000). This is not taking into account migration to other countries such as FYROM, Albania, Romania and Serbia. As it stands, Greece is the third largest investor in Bulgaria after the Netherlands and Austria.

So the obvious question is, why did all these Greek businesses move to Bulgaria? And what are the Bulgarians doing better which the Greeks are not?

Taxation - Greece’s Achilles heel.

Two countries with radically different taxation policies put into debt perspective.

Bulgaria - When Bulgaria exited the Eastern-Bloc sphere of influence in 1991, it had just over €10 Billion state debt, which represented 180% of GDP. Bulgaria entered the EU in 2007 after maintaining a decade long policy of budget surpluses and reforming their tax codes in the process, after which public debt reached a record low of 13.7% over GDP (the second lowest in Europe after Estonia). Although Bulgaria was not immune to the European financial crisis, thanks to sound fiscal policies and the resulting €4.3 Billion state fiscal reserve, they managed to ride out the financial storm and maintain a public debt of only 18%. These post crisis deficits levels are comparable to those of Norway, Sweden and Austria.

Greece - Although Eurozone entry had ‘’strict’’ criteria for government to GDP ratio of under 60%, we can all agree that 14 years down the line and omitting creative accounting practices of the past, the true present situation is anything but Maastricht compliant.

Balkan economic wars

Bulgaria has benefited from major investments. Here are a few examples. 

• ·         Montupet automotive (for those who remember the DeLorean) has invested €100M in Bulgaria and employed almost 1.000 people.
• ·         The telecommunications arm of AIG invested $2B in several plants.
• ·         American Standard - $240M.
• ·         AES Energy Generation Corp - $1.4B.
• ·         NU Image Film Productions - $28M.
• ·         Microsoft, Hewlett Packard and IBM have their European call and service centres in Sofia.
• ·         Turkish companies Sisecam and Alcomet opened plants that employ 2.000 people (blue & white collar) combined.
• ·         Germany’s SAP opened SAP labs, an ICT facility in Bulgaria employing over 500.

Bulgaria is not the only country that did the prudent thing by lowering its taxes and simplifying their tax codes.  Albania and FYROM both have 10%, while Romania and Serbia have 16% and 15% respectively. Add to the mix, the brutal Greek 23% VAT rate and the fact that you can open a limited liability company in Bulgaria with just €1 share capital (€4.500 in Greece), it’s no wonder why Greece is losing the economic war against its Balkan neighbors.

In conclusion, and according to very conservative estimates, a combination of intolerable tax rates, a high VAT rate and inflated payroll tax has driven one quarter of the Greek economy underground by tax evasion, transfer pricing practices etc., while the more honest ones in the formal economy are either forced to shut down or move to other countries such as Bulgaria. What’s more, massive migration of businesses from Greece continually gains momentum and at the same time delivering a huge blow to the state coffers in the process.

The call to reduce taxes and tackle reforms

The promises made by the previous ND-PASOK administration that there would be a return to markets in 2014 has yet to materialize. It also hasn’t silenced market experts and economists alike who claim that this will not be attainable in 2015 either, since a third bailout package is looming on the horizon.

As EU-IMF bailout packages come with painful reforms and demands, there is no doubt that Greece will once again be forced into a vicious storm of austerity amidst a tranquil sea of more competitive economies right smack on its borders.

There has recently been several appeals by the likes of economists such as Nathan Lewis and even Steve Forbes to adopt measures that will not only stem the exodus of businesses, but also provide a stimulus to foreign investment and economic development.

•  Adoption of a flat tax on personal income and corporate profits (which will also deter tax evasion. After all, who in their right mind is going to evade 10%?).
• Axing the ridiculously high payroll tax from 45% to 10%.
•  Reducing VAT to 15%. 

The current leftist-led coalition government of SYRIZA which claimed victory during the January elections did so largely on a radical platform of taxing the wealthy, easing tax burdens on the poor and more state interference in the economy. This approach is a trip down the wrong avenue known in economists’ circles as Sweetwater economics and is doomed to fail. It will not only deteriorate the already toxic situation, but it is also going to alienate valuable investors (domestic and foreign).

Is the Greek government seriously seeking a development stimulus that will bring in foreign investment, deter tax evasion and fill up the state coffers? Are they willing to learn from Bulgaria’s proven model? If yes, then they should follow Bulgaria’s approach by reducing taxes, simplifying tax codes and axing bureaucracy. The question is, will the government eventually get a grip of reality and pick up the courage to fearlessly serve it to the EU and IMF on a take it or leave it basis?

All self-respecting Greeks, who either live in Greece and/or abroad, need to unite and make a stand to promote this policy by lobbying to their MP’s and other interest groups. We also need to do this now as time is Greece’s number one enemy and a commodity that our nation simply does not have.

Russians begin inspections of Greek farming product suppliers - Exports to Russia to rise

The Russian Federal Service for Veterinary and Phytosanitary Surveillance Rosselxoznadzor began its checks to future suppliers of farming products from Greece, Hungary and India.

     "Approximately twenty Greek companies will be inspected in Greece and another twenty in Hungary while only four to five companies in India. Cyprus has asked for a short extension and the inspection in Cyprus will start on April 27 in 6-8 companies," the representative of the Rosselxoznadzor Alexei Alekseenko told the Russian press agency RIA-Novosti on Monday.

He added that the inspections are expected to wrap up by April 30th.
In Athens, diplomatic sources told the state news agency ANA-MPA that the Greek companies that will be checked within the next two weeks are involved in the production of dairy, poultry, cured meat products and fish from fish farming. According to the report, the Russian side will import products only from units that have certification from Rosselxoznadzor and will not consider the EU certifications sufficient.

Sources: RIA-Novosti, ANA-MPA

Athens & Moscow work on pipeline construction agreement

Greece and Russia are working on a memorandum for the construction of a "Greek pipeline" of natural gas that may be signed in Athens as early as next week, according to RIA-Novosti Russian news agency citing a Greek source, who said he was quoting Greek Productive Reconstruction, Environment and Energy Minister Panagiotis Lafazanis.

The new pipeline is slated to begin operations in December 2016, and the Greek section will connect to a pipeline delivering Russian gas to Turkey and southern Europe, according to the agency, which also said that signing on the Russian side would be Energy Minister Alexander Novak.

According to the calculations, the Greek section is estimated to cost as much as 2 billion euros and run from the Greek-Turkish borders to the borders with FYROM. From here it will extend to Serbia and Hungary, ending up in Austria, according to Russian-based Gazprom.

The agency quoted Greek sources as saying that construction would be carried out by the private sector and agree fully with EU legislation.

No further details were available.

ANA-MPA

Number of cell phone users in Greece rises during crisis

Greek citizens might be in a crisis, but the telecoms companies are making a lot of money from their subscribers. The number of cell phone subscribers in Greece has apparently reached 16.4 million in 2014 to a population of only 11 million Greeks, according to a new survey that was conducted from the Economic University of Athens for the Greek Mobile Operators Association (EEKT).

In fact, the use of cell phones rose by 4.5% compared to 2013, but the total amount spent per person fell to 10 euros per month.

Telecom companies are doing so well that they actually invested 16 percent from their revenues to support the infrastructure needs for new technologies – this is approximately 21 percent more than in 2013. Prices and revenue, however, fell by 4.4%.

Thankfully, Greece still maintains the most inexpensive cell phone contracts and mobile data prices have dropped by 67 and 90 percent, respectively, since 2008.

Lafazanis in favour of Turkish Stream pipeline - Russian natural gas to EU via Greece

Productive Reconstruction, Environment & Energy Minister Panagiotis Lafazanis on Tuesday referred to the outcome of his two-day visit to Moscow ending Monday, underlining that he is in favour of the extension of the Turkish Stream natural gas pipeline - planned to reach the Greek-Turkish borders - to carry Russian natural gas to Europe via Greece.

The minister clarified that the final decision will be reached on collective government level and by Prime Minister Alexis Tsipras, who is visiting Moscow on April 8, pointing out that if the plan is approved the benefits for the country will be "from exceptional to quite exceptional."

He also announced that Russian companies will participate in the hydrocarbon exploration in the Ionian Sea and south of the island of Crete. He referred to the maritime zone delimitation based on international law, noting that this is a firm government position and will benefit both Greece and Turkey.

In regions where Turkey has no legal claim, exploration can take place within the 6 mile limit, he said.

If adopted, the natural gas pipeline plan provides that Russian natural gas will reach central Europe through FYROM and Serbia after crossing the Greek-Turkish borders. Lafazanis said that Europe needs the Russian natural gas and underlined that this pipeline should not have the fate of previous plans, like the Burgas-Alexandroupolis oil pipeline and the South Stream natural gas pipeline. He also expressed opposition to Russia being placed in an "energy quarantine."

The minister stressed that if this pipeline is not built, Russia will be linked with Europe only via Germany and Europe's germanization will be further reinforced, raising obstacles to equal cooperation between countries and peoples.

He said that the extension of the pipeline will be made based on national and European legislation, underlining that "Greece has no complexes, is nobody's satellite and is not subordinate energy-wise to any major power or alliance of countries. Greece wants to exercise an independent national energy policy that will serve national interest," he said, adding that it is unthinkable and unacceptable the fact that agreements between EU states and third countries have to be checked in advance by the EU.

     "We want to develop an energy policy that will cut energy prices and the cost of energy supply in raw material," he underlined.

Referring to the talks he had in Moscow with Russian Energy Minister Alexander Novak and Garzprom's Alexey Miller, the minister said that they discussed issues concerning the natural gas supply price and the take or pay agreement, adding that the Russian side pledged that Russian companies will participate in the tender for hydrocarbon exploration in 20 offshore blocks in the Ionian Sea and south of the island of Crete.

Lafazanis said that he is against the EU embargo on Russia and asked that Greek products be exempt from the Russian embargo on EU farm products, noting that he expects a positive outcome during the prime minister's visit to the Russian capital.

He also said that the issue of Greece's financing by Russia was not raised and as regards privatizations, he pointed out that there is no question of privatization of public-run energy production companies.

Sources: ANA-MPA, enikos, protothema, To Vima

EC calls on Greece to recover state subsidies from Cosco

The European Union has apparently ordered the Greek government to recover state subsidies which were received by Cosco’s subsidiary in Piraeus, since they consider them to be non-compliant with European legislation. The announcement of the decision came a few hours prior to Prime Minister Alexis Tsipras’ meeting with German Chancellor Angela Merkel in Berlin on Monday and ahead of Vice Premier Yannis Dragasakis’ trip to Beijing, China.

The Commission claims that the tax exemptions and preferential treatment that Cosco’s subsidiarity received conflict with EU competition law. As such, the EC has demanded that a number of main terms and clauses in the contract between the two sides be removed.

The Commission believes that Cosco was exempt from various taxes and received preferential treatment, especially in foreign investments.

(More details should soon be available in the next edition of the Official Journal of the European Union.)

EC spokesperson Ricardo Cardoso told the To Vima newspaper that while the European Commission is planning to delineate the method for recovering the State subsidies, it is up to Greek authorities to establish how much these subsidies amount to, as they alone have the relevant information.

Editor's Note: Call us foolish, but HellasFrappe feels that this is just Brussels' way of hitting China via Greece. The port of Piraeus was not only revamped under the Cosco management, but this investment generated tens of hundreds of jobs for many people in the area. It also made the Greek port one of the busiest and most prominent in all of Europe. The Commission -which we all know tilts towards the Left- should stop protecting the State, and begin supporting the private sector in Greece.

Russia Cannot Exempt Greece From Food Embargo

Greece is not going to be excluded from the embargo imposed by Russia on its farm production, but other forms of cooperation could be discussed, including the supply with Greek raw materials of food-sector joint ventures on Russian soil, Kremlin spokesperson Dmitry Peskov said. His comments come after the Greek government asked Russia to lift sanctions on supplies of “key agricultural production” such as peaches, strawberries and oranges that are being left to rot due to a lack of a market.

     "There are quite straightforward rues of the World Trade Organization, and Russia, as a WTO member, cannot choose. We cannot impose sanctions against EU member states and selectively lift sanctions on one of the countries," he told newspaper Izvestia.

However, in this case direct deliveries of agricultural products can be substituted by "imports of raw materials with an investment in Russia-based food processing facilities," Peskov said.

Earlier in February President Putin said Moscow would be able to cooperate with Hungarian agriculture despite sanctions and added that the establishment of joint ventures will help avoid the difficulties caused by Russian countermeasures against Western sanctions.

References: RT, enikos

Eldorado Gold threatens action over Skouries mine, while 21 suspects stand trial

Eldorado Gold Corp., battling to develop a mine in Greece in the face of government opposition, said it was blocked from completing construction of a processing plant at the site.

     “The company believes the decision of the ministry of Productive Reconstruction, Energy and Environment has no legal basis and will, if necessary, act to protect the legal rights of the company, employees and stakeholders,” Eldorado said.

A spokesman for the ministry declined to comment on the Eldorado statement.

The notice from the newly elected Greek government indicates that it may reverse the decision once it completes a review, the company said in the statement. (Source: Bloomberg)

Meanwhile it was reported that a total of 21 suspects have been referred to the Felony Appeal Court of Thessaloniki, where they are going to stand trial for the assault against the controversial mining facilities owned by Hellenic Gold in Skouries in February 2013. The 21 suspects are charged with the formation of a criminal organization, while they are also set to face other felony charges such as attempted manslaughter, possession of explosives, arson, etc.

All 21 suspects are residents in the north east of Halkidiki and are members of the movement that is opposing the mining investment. They have all rejected the charges.

Local residents have vehemently opposed the mining operation as it will have a severe impact on the environment and their livelihood.

The courts are to decide at a later point on referring a further 29 people for their participation in the violent demonstrations that followed soon after.

Combibed reports: Bloomberg, To Vima

Skourletis: 751 Minimum Wage To Be Restored in 2016

Minister of Labor Panagiotis Skourletis said that he is preparing a draft bill which aims to restore the minimum wage to 751 euros and reverse a set of other labor reforms. Skourletis pointed out that the bill will be ready in March and that wages would gradually be restored by 2016. The bill seeks to overturn reforms on collective labor agreements, as well as collective dismissals, compensation and contract extensions, etc. It also aims to raise the powers of the Mediation and Arbitration Organization.

When asked if Greece’s lenders would support the bill, Skourletis said that there is going to be a consultation period. He also announced that SYRIZA is not going to be bound by the commitments of the previous administration, when asked about the existing legislation.

He described undeclared employment as “the most important reform”, measure that his party is going to undertake along with the “Medieval working conditions” that currently dominate the job market. To that end the Labor Inspectorate will be upgraded and supported to meet the modern needs of the market.

Audit Court Rules In Favour of Hellinikon Privatisation

Hellinikon Global I S.A., the highest bidder for the former airport of Helliniko, south of Athens, may proceed through the privatisation process, according to the Court of Audit by a unanimous and irrevocable ruling, state news agency ANA-MPA reported.

In its decision, the Court's majority panel discussed an injunction filed in December 2014 by the Region of Attica and residents' groups. They were protesting a decision by a Court section, which had ruled that the tendering process was legal and that Lamda Development S.A., the guarantor of Hellinikon Global, had won as highest bidder.

In the project, Lamda Development, is backed by China's Fosun and Al Maabar, a unit of Abu Dhabi's sovereign fund Mubadala Development.

The 7-billion-euro plan to develop Hellenikon, a 620-hectare (1,520 acre) plot, is one of Europe's most ambitious real estate projects and Lamda has said it will take some 15 to 20 years to complete once construction begins in 2016 after all legal permits are secured.

ANA-MPA, Reuters

Greek Economy Expected To Grow By 2.5 percent In 2015

The European Commission on Thursday downgraded its initial growth forecasts for Athens noting that the Greek economy would grow by 2.5 percent in 2015 from a previously predicted 2.9 percent figure that was projected last November. On account of all the measures taken by the previous coalition government, which at times were extremely harsh, and the sacrifices that were made by the Greek people, the Hellenic Republic can now proudly say that it will return to 3.6 percent growth in 2016.

In its full 180-page report, the commission said its projections were based on a full completion of Greece’s current bailout program - which the SYRIZA government has vowed to scrap- and warned that economic growth could once again be affected by continued political turmoil.

     "Uncertainty on the direction of policies is affecting confidence and may dent the speed of the recovery," it said.

In the report it is noted that economic growth in the Eurozone is projected to reach 0.8 pct in 2014, 1.3 pct in 2015 and 1.9 pct in 2016, while for the EU is projected economic growth rates of 1.3 pct in 2014, 1.7 pct in 2015 and 2.1 pct in 2016.

The unemployment rate is expected to fall from 26.6 pct in 2014 to 25 pct in 2015 and 22 pct in 2016 in Greece, while in the Eurozone the unemployment rate is projected to fall from 11.6 pct in 2014 to 11.2 pct this year and 10.6 pct in 2016.

Greece's fiscal deficit is set to reach -2.5 pct of GDP in 2014 and to return to surplus of 1.1 pct in 2015 and 1.6 pct in 2016. The country's public debt, on the other, is set to drop from 176.3 pct of GDP in 2014 to 170.2 pct this year and to 159.2 pct in 2015, while the inflation rate is projected to ease from -1.4 pct in 2014 to -0.3 pct this year and to return to positive ground (0.7 pct) in 2016.

(Editor's Comment: And all this... After six years of recession... This is important to note because some of our readers have questioned the work of the previous conservative government, but if they checked the figures in May 2012 and compared them with the figures today, then they would see that all these sacrifices are starting to pay off. Let us hope that the new government does not set us back.)

Winners Fund - The First Crowdfunding Platform in Greece

The first Greek crowdfunding platform is soon expected to begin operating in Greece. According to reports, Winners Fund is going to allow a large number of individuals to invest a small amount of money in innovative ideas in exchange for shares in the companies that are going to be created.

The Winners Fund is set to begin operation with three new highly innovative businesses, namely: AlgaeFarms, the SpreeadeHipp and Doxato Farm., all of which are looking for funding.

Over the past few years, online platforms became widely popular since they began permitting individuals to "pick up" funds for an idea, or to invest in young entrepreneurs who believe that can provide future returns. Since 2010, Winners Fund, has raised more than $ 10 billion through crowd funding.

In Greece, there have been similar attempts (e.g. to repay part of the Greek debt); yet the framework hasn’t been equally friendly. The founders of the Winners Fund claim that the platform works with increased protection of individuals who plan to invest money.

Euro2day.gr - Winners Fund (in Greek) 

Lafazanis Says Gov't Considering Changes For Greek Hydrocarbons Tenders

Production Reconstruction, Environment and Energy Minister, Panayiotis Lafazanis said that he is going to look into the ongoing international tenders for exploration and exploitation licences in three land blocks in western Greece. He said that he is going to do this for possible changes before its deadline.

It should be reminded that the tender, concerns blocks in Arta-Preveza, Etoloakarnania, and northwest Peloponnese, and expires on February 6th. It was launched by the previous government based on terms stipulated by EDEY, the Greek Hydrocarbon Management Company.

     "We’re examining the issue. We may need to intervene before the deadline expires and offers are submitted," Lafazanis, the newly appointed minister, told enerypress.

The same formula had been applied to a preceding - and finalized - tender for three other blocks along Greece’s western flank, in Ioannina, the Gulf of Patras, and Katakolo.

SYRIZA has in the past disagreed with the specific model used by EDEY, noting, in Parliament, that it does "not promote and protect the interests of Greek people", but, instead, transfers, "medium-to-long term state benefits" to the private sector.

Source: energypress.eu

Revenues From Greek Exports Expected to Grow in 2015

Revenues from the export of Greek products and services are expected to increase anywhere from 5 and 5.5% in 2015, according to projections by international organizations, since 2014 closed with an estimated decline of 2-2.5%, Christina Sakellaridi, the president of the Association of Panhellenic Exporters said on Wednesday.

     "The course of exports in the six years of the crisis confirms the capacity of the Greek economy to be competitive on a global level while also highlighting the necessity for the formation of a pro-growth business and politically stable environment in order to fully utilize the prospects," Sakellaridi stated at an event in Athens. 

She also pointed out the European Union is the natural space and the main market for Greek products.

Investigation into cancelled Thessaloniki underwater road tunnel project

A Greek prosecutor ordered an investigation into the canceled Thessaloniki underwater road tunnel project which has for years now been plagued by litigation issues, including a court ruling calling on the Greek state to pay the concessionaire 73 million euros as compensation. The 6.5-km tunnel in the gulf off of Thessaloniki is designed to reduce the northern city's huge traffic problem by providing motorists with a link from the western part of Thessaloniki with the southeast limits of the city proper. It was a project that was announced during Costas Karamanlis' rule (2004-2009) and a tender that followed awarded the project to the Thermaiki Odos consortium which is comprised of Aktor, Boscalis and Archirodon Group and in February 2007 the Greek Parliament ratified the contract.

Litigation over delays in the project by the state began in 2009, or when George Papandreou's PASOK party once again came to power,  and unfortunately the project was put on hold while the litigation issues continue to the present day.

With this in mind, and with the obvious question as to why, anti-corruption prosecutor Argiris Dimopoulos ordered the finance ministry's financial crime unit SDOE to carry out a preliminary investigation into the likelihood of a criminal liability for this particular project's cancellation as well as to decide whether or not felony charges should be filed (allegedly against state officials), for breach of faith against the state.

Dimopoulos intervened in response to a news report which was recently published in the Thessaloniki-based "Macedonia" newspaper last weekend based on which the first installment of the compensation, estimated at roughly 3.7 million euros, would soon be paid by the Greek state and the rest would follow.

Major Works At Faliro & Panepistimiou Excluded By Commission As Superfluous

The European Commission had decided to reject NSRF funding for two major projects in Athens, the first being the pedestrianization of Panepistmiou Street in the heart of the Greek capital, and the second being the renovation of the Faliro coastline.

It is believed that these two projects were rejected since they are considered cosmetic and superfluous. On its part the Ministry of Infrastructure maintains that the plans for the projects are going to be revised in order to highlight the financial and environmental sustainability and growth potential for tourism.

The good news is that other major projects were approved. Specifically the water supply of Corfu, expanding the suburban railway as well as metro networks in Athens and Thessaloniki and the construction of a waste management sites.

The above projects are expected to generate at least 32,000 jobs in the transport industry and a further 50,000 in the environmental sector.