The Greek government is considering not imposing the Capital Concentration Tax (1 percent) on shipping, as the meeting between the competent Ministers and shipowners’ representatives in Piraeus revealed yesterday.

The meeting by the Ministers of Economy, Giorgos Alogoskoufis, and Merchant Marine, Giorgos Voulgarakis, with representatives of the Greek Union of Shipowners (EEE) and the Greek Shipping Cooperation Committee, based in London, reportedly discussed ways and methods for linking Greek shipping with the local economy.

Alogoskoufis made a commitment to shipowners that the directive that imposes the tax on shipping companies will not be applied. Shipping companies had previously been exempt from that tax. The Economy Minister also referred to the government’s intention to take future measures so that the institutional framework for investments becomes more efficient and less bureaucratic. “We have built a relationship of trust with the shipowners and we intend to strengthen it with the appropriate steps” Alogoskoufis stated. Voulgarakis said, “The Greek government guarantees adherence to the constitutionally protected institutional framework for shipping” adding that “we have and we are supporting shipping, taking special measures to fully secure shipping business activity and its competitiveness”.

The meeting also heard that Greek shipping is a key pillar for the country’s economy, employing 16,000 Greek seamen, while there are over 1,300 shipping enterprises operating, managing the Greek-owned fleet with 12,000 specialized staff. Foreign currency inflows from shipping hit 17 billion euros in 2007, while, according to the president of EEE, Nikos Efthymiou, “estimates for 2008 see it climbing even higher”.

However, he also touched on the issue of the lack of officers in shipping, “and this does not help the development of the Greek register”. He then sent a message to the European Commission, saying that it has to realize that the support of European shipping, 50 percent of which is Greek-owned, is a necessity, otherwise the sector may suffer the same fate as shipbuilding.