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Developments in Greece

Although in its 6th year of recession, with unemployment running at 27%, and, shockingly, over 64% unemployment amongst its youth, Greece's economy is showing the first welcome, albeit faint, signs of recovery. The Government has held a steadfast course, while the foreign lenders' demands, (the International Monetary Fund, the European Central Bank, and the European Commission) are more pragmatic, boosting prospects. Also, according to analysts, the absence of negative headlines is both encouraging tourists from Western Europe to return to Greece and encouraging investors to take a closer look at Greek assets.

For the shipping industry, the re-establishment of a stand-alone Ministry, along with the transfer of its supporting pillar, the Hellenic Harbor Corps (Hellenic Coastguard) to its rightful home within the Ministry, have signaled the Government's intention to support its most successful industry, and is indicative of an eventual return to operational efficiency by its administration. The steps already taken or those which have been announced (simplifying the procedures for the registration of ships under the Greek flag, updating of maritime training, better representation of the country at international fora, the Nearchos scheme to support the employment of young Greek seamen, etc.), are all indications that the significant revenue and employment generated by shipping, both directly and indirectly through the maritime cluster, are acknowledged as key factors of growth, and will be supported.

In addition to making numerous individual, collective, eponymous and anonymous donations, the Greek shipping community, has recently reached an agreement with the Government, through the Union of Greek Shipowners, for an extraordinary voluntary contribution over the next three years. This contribution envisages the payment by every subscribing ship (whether flying the Greek flag or a foreign flag and managed from Greece) of an additional tax that is equivalent to what the law provides for the tonnage tax applicable to Greek-flagged vessels. On a practical level, this means the voluntary doubling of the tonnage tax for subscribing Greek flag ships, and the payment of an equivalent amount in respect of subscribing foreign flag ships.

DEVELOPMENTS IN THE EUROPEAN UNION

Within the European Union framework, there are a number of areas of immediate interest for ocean-going shipping, namely, the transposition of the ILO Maritime Labour Convention into European Law; the ongoing discussions on Market Based Measures to reduce CO2 emissions from shipping; (Vessel Monitoring Scheme); proposed unilateral measures for the recycling of ships; the European Commission's desire for en-bloc EU representation at IMO on all issues; and the assessment of the Maritime Aid Guidelines (Tonnage Tax Regimes).

However, as the economic climate remains uncertain, there is a welcome acknowledgement of the current contribution and future potential of the maritime industry, along with an equally welcome pragmatism, which is helping to curb the more unworkable/controversial proposals that nevertheless continue to be discussed.

Affairs of shipping are being dealt with predominantly by four Directorates-General, namely, the Directorate-General for Mobility and Transport (DG Move), under Vice-President of the European Commission and Commissioner for Transport, Siim Kallas; the Directorate-General for Maritime Affairs and Fisheries (DG Mare), under Commissioner Maria Damanaki; the Directorate-General for Climate Action (DG CLIMA), under Director-General Jos Delbeke; and the Directorate-General for Competition, which has jurisdiction over the application of the EU State Aid Guidelines, under Vice President of the European Commission and Commissioner for Competition Joaquín Almunia. Although shipping does not currently appear to be one of its priorities, the most pressing topics on the EU agenda, relating to shipping, are the Environment, Blue Belt, Ports Policy and Piracy.

The shipping industry, and in particular the European Community Shipowners' Associations (ECSA), along with other international shipping organisations, is closely following developments at the European Commission, European Council and European Parliament, by responding to consultations and questionnaires and keeping an open dialogue.

Those representing the industry have repeatedly emphasised that given the serious impact of the financial and economic crisis on the shipping industry, which impact is aggravated by the tonnage oversupply in most sectors, no additional burdens should be placed on the industry at the present time. Instead, all efforts should be made to facilitate the structural environment in which the industry is operating. This reminder is important as, unfortunately, proposals for unilateral and burdensome regulations continue to surface, (such as for a recycling fund - see below).