WRITTEN QUESTION P-2599/01 by Antonios Trakatellis (PPE-DE) to the Commission. Operation of Olympic Airways: privatisation and State aid.
Date: 2001-09-19
Institutions: European Parliament, Provisional data
Subjects: EU control, European Commission, Greece, State aid, air transport, exchange of information, privatisation

18.4.2002

EN

Official Journal of the European Communities

C 93 E/169

December Council’, and the Member States ‘to apply procedures for the issue of visas with maximum
rigour and to this end step up local consular cooperation’. The Council has also invited the Commission ‘to
submit proposals for establishing a network for information exchanges concerning the visas issued’. The
Commission has confirmed that it will submit such a proposal, as well as proposals to reinforce the
security features of visas modifying the proposal for a Council Regulation amending Regulation 1683/95
laying down a uniform format for visas currently under examination in the Council.

Council bodies are also examining the possibility of establishing common visa issuing offices.

(2002/C 93 E/201)

WRITTEN QUESTION P-2599/01

by Antonios Trakatellis (PPE-DE) to the Commission

(19 September 2001)

Subject: Operation of Olympic Airways: privatisation and State aid

After the failure of the two programmes aimed at restructuring a debt-ridden Olympic Airways through
the provision of Drs 3 trillion in State aid, the Greek Government has gone back on its original decision to
privatise the company by declaring it bankrupt and splitting it into two companies (one profit-making, the
other loss-making) and in May 2001 invited offers for a majority stake in the company. Although the
highest bidder was selected following an assessment of the offers, negotiations on the sale of the company
have yet to be opened. There are a great many unclarified aspects of this case relating to Community law
and the continued operation of Olympic Airways under these circumstances is creating further debt.

Will the Commission, therefore, say:

1. whether Greece has fulfilled its obligations to the European Union under the two restructuring

programmes and, if not, which obligations it has yet to fulfill,

2. what amount of State or other aid the company received for operations in 2000 and 2001 and
whether such aid, e.g. payment of Olympic Airways’ dues to the Spata airport authority by means of
interest-free loans from the Greek Government, was notified to and approved by the Commission in
accordance with Community rules, and

3. what representations it has made to the Greek authorities to speed up the privatisation process,
establish transparent rules for the sale of the company and produce data such as the official accounts
for 1999 and 2000?

Answer given by Mrs de Palacio on behalf of the Commission

(25 October 2001)

The Commission has been closely following the ongoing privatisation process of Olympic Airways since its
it has stressed to the Greek authorities that the
starting point in December 2000.
privatisation procedure has
transparency, neutrality and non-
discrimination and that both the process as well as the transaction itself cannot contain any state aid.
The Greek authorities have stated that the privatisation deal will be duly notified to the Commission.

to fully observe the principles of

In this context,

On the basis of a complaint the Commission has asked the Greek authorities for clarifications of various
aspects relating to the compatibility of the current situation of the company with the Commission’s passed
decisions relating to state aid matters and, in a more recent correspondence, it inquired about the state of
payment of various amounts since its 1998 decision. Following a first reaction from the Greek authorities
in August, the Commission expects to receive such detailed information before the end of October.
Therefore, the Commission will be only thereafter in a position to resond to the Honourable Member’s
detailed points.