Members of the Greek Parliament are being heavily criticized for ratifying a 270-million-euro settlement agreement with the German multinational Siemens. Press reports said that some 164 MPs approved the legislation, numbering some 1,000 pages. However, an article relating to the operation of a state business register wasn't approved, after conservatives in New Democracy--one of the two parties supporting the coalition government--voted it down. The party said it wants to examine the article further and left open the possibility of approving it before parliament is soon dissolved ahead of upcoming elections.
The omnibus bill ratifies an out-of-court settlement with German conglomerate Siemens AG (SIE.XE, SI) in a bid to end a years-long dispute over past bribery allegations against the company.
Under terms of the deal, Siemens will write off EUR80 million in unpaid arrears owed by the Greek government, pay EUR90 million in cash to the government for various purposes, and spend EUR100 million in new investments in Greece in 2012. It will also consider EUR60 million in future investments.
A report on capital said that the law also includes the complete liberalization of cabotage in the cruise sector. Cabotage is the right to engage in particular types of transport. In the past, Greece maintained extensive protectionist measures that effectively banned foreign vessels from passenger transport within Greek waters.
Under European legislation, Greece was supposed to lift all cabotage restrictions in 2002.
Other growth measures included are some tax initiatives, even though the country's two political parties are in the process of negotiating a sweeping reform of Greece's tax system--something the country has also promised its creditors.
After months of tough negotiations with international creditors, Athens secured a second bailout last month, on top of a EUR110 billion rescue package in 2010. An unprecedented debt-swap deal paved the way for the aid and will help slash the country's debt ratio to 120% of gross domestic product in 2020 from the unsustainable 160% currently.
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