Commission Launches New Formal Investigation on Fiscal Advantages to COSCO in Piraeus Container Terminal

Breaking News, European Union, Ports & Terminals — By on October 9, 2012 at 9:41 AM

In July 2012, the Commission notified Greece of its decision to initiate a new formal investigation procedure concerning possible unlawful State aid, in the form of fiscal advantages to COSCO Pacific Limited as concession holder of the Piraeus Container Terminal (PCT).  

This is the result of the assessment of the complaints lodged in 2009, concerning possible advantageous provisions included in the concession agreement which were not foreseen in the tender, and tax exemptions and other advantages.

According to the Commission’s assessment, the differences between the concession agreement and the contract notice do not constitute State aid. The fiscal measure related to the exemption from corporate income tax for goods, works and services provided to Piraeus Container Terminal outside Greece does not constitute State aid either. However, for all the other fiscal advantages, the Commission considers at this stage that they constitute State aid. Therefore, the Commission has initiated a formal investigation procedure and requested Greece to submit comments and to provide all necessary information to assess the aid measures. The invitation to submit comments was published in the Official Journal of the European union on 5 October.

The Commission’s explanatory letter in English to the Greek State can be found her: 245376_1357614_49_2

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