Roundup: Fresh doubts raised over privatization of 14 Greek airports

Fresh doubts were raised on Wednesday after the government finalized a 1.23-billion-euro deal (1.36 billion U.S. dollars) with the German consortium Fraport-Slentel on Tuesday to privatize 14 regional airports in Greece.

The sale of the airports' operation rights for four decades was the first privatization to be concluded under the third bailout that was ratified by the Greek parliament on Friday.

It was also the first privatization to be carried out since the left-led government coalition assumed power after the general elections in January.

The announcement sparked mixed reactions in Greece. Some members of opposition parties welcomed the deal as a step towards boosting development in the debt-laden country. At the same time, they criticized the government for wasting precious time by delaying decisions for months.

Meanwhile, the ruling SYRIZA party's hardliners denounced the "sell off" in a statement. Left Platform accused the government of "handing a great gift to the German government in return for the new catastrophic bailout."

The president of the Federation of Greek Civil Aviation Workers (OSYPA), Vassilis Alevizopoulos, warned of strike actions and lawsuits in Greek and European courts to "safeguard Greek public interests," speaking to local VIMA radio station on Wednesday.

Critics argued that the funds the German consortium would invest in the upgrade of the airports under the contract were insufficient and the cost will undoubtedly be transferred to travelers.

In this climate of prolonged economic and political uncertainty in Greece, the German investors would most likely seek "more guarantees" from the government, Kathimerini (Daily) newspaper reported.

However, Greek government sources stressed that if the consortium should wish to renegotiate the contract, there would be an in-depth dialogue on all issues.

The agreement on the concession of the 14 airports that included the airports of Thessaloniki in northern Greece, and airports on islands such as Corfu and Mykonos, was initially scheduled to close in late 2014, but was frozen in the pre-election period.

SYRIZA, which initially opposed the entire privatization program since the beginning of Greek bailouts in 2010, had previously said that the terms of the tender would be reviewed. But according to Tuesday's official announcement, no amendments were made on the finalization of the privatization.

The government eventually committed to the 50-billion-euro-worth privatization program under the 86-billion-euro, three-year bailout deal reached with international lenders this summer to keep Greece afloat and in the eurozone.

Greek ministers argued that privatizations would take place under changed conditions in comparison to the past "to benefit Greek economy and people." Endit