USA: Greece joins Visa Waiver Program

Greece has become a member of the Visa Waiver Program, enabling Greeks to travel to the U.S. for up to 90 days with just a valid passport. Greece joins 35 other nations already participating in the Visa Waiver Program.

Source: Travel Weekly; find article here>>.

Greece: reference for preliminary ruling concerning hotel TV

Greek court "Arios Pagos" has filed a reference for preliminary ruling on wether the mere installation of television sets by a hotelier in hotel rooms and their connection to the central antenna installed in the hotel, without any other action, intermediation or intervention by the hotelier, constituted communication of the work to the public within the meaning of Article 3(1) of Directive 2001/29/EC, and, in particular, in accordance with the aforementioned judgment of the Court of Justice of 7 December 2006 in Case C-306/05 Sociedad General de Autores y Editores de España (SGAE) v Rafael Hoteles SA, and whether this would involve the distribution of a signal, via television sets, to customers who stay in the hotel rooms, by means of the technical intervention of the hotelier.

ECJ Case 136/09 - Organismos Sillogikis Diakhirisis Dimiourgon Theatrikon kai Optikoakoustikon Ergon v. Divani Acropolis Hotel and Tourism AE;
reference published in Official Journal of the European Union of 20.06.2009.

European Court of Justice: Penalty on Greece for Non-Recovery of illegal State Aid to Olympic Airways

In 2002, the Commission took the view that certain aid granted by Greece to Olympic Airways was incompatible with the common market for failing to comply with certain conditions initially laid down. The aid had to be recovered without delay. Faced with inertia from Greece, the Commission first made an application to the Court in 2003. A judgment holding that Greece had failed to fulfil its obligations was delivered in 2005.

Following difficulties encountered by Greece in implementing that judgment, the Commission brought a new action before the Court, seeking a declaration that Greece had not complied with the Court's judgment and the imposition of a periodic penalty payment and a lump sum penalty payment against Greece.

The Court today delivered a second judgment on failure to fulfil obligations, accompanied by a dual financial penalty: a periodic penalty payment and a lump sum penalty payment.

The Court found that Greece's failure to fulfil obligations has lasted for more than four years. It concerns the common market, the establishment of which is an essential task of the European Community. Moreover, the control of aid to air transport is of considerable importance, since that market is, by its nature, a cross-border market. However, the amounts of aid in respect of which Greece has not proved repayment constitute only a relatively small part of the total sum.
The Court therefore imposed upon Greece a periodic penalty payment of EUR 16 000 per day of delay in implementing the judgment of 2005, counting from one month after the delivery of the present judgment, in order to allow Greece to demonstrate that it has ended the failure to fulfil obligations.

The Court recalled that cumulation of the two penalties in based on the capability of each to fulfil its own objective and depends on the circumstances of each case. The Court, on a just assessment of the circumstances of this case, determined the amount of the lump sum penalty payment at EUR 2 million.

Source: ECJ press release 59/09 of July 7, 2009; find full text here>>.

European Union: Court of First Instance partly annuls Commission's decision on aid paid to Olympiaki Aeroporia Ypiresies

Following the terrorist attacks of 11 September 2001, the Commission adopted a Communication on their repercussions on the air transport industry. In that communication, the Commission considered that, having regard to the exceptional nature of the events of 11 September, the State aid provisions could authorise, under certain conditions, compensation for costs caused by the closure of American airspace for four days (from 11 to 14 September 2001) and for the extra cost of insurance.
In 2002, the Greek authorities sent the Commission the detailed calculations of the compensation in favour of Olympiaki Aeroporia Ypiresies. It related to revenue lost in respect of the carriage of passengers and goods, the costs of destruction of sensitive goods, the additional costs of security checks, the costs of recalling an Athens to New York flight on 11 September 2001 and of cancelling the return flight, the costs of the landing and stay at Halifax (from 11 to 15 September 2001) of a flight the original destination of which was Toronto, the costs of extra repatriation flights (‘ferry flights’) on 18, 20 and 26 September 2001 and, finally, the costs connected with the additional hours worked by staff and the costs of additional security. The amount of EUR 4 827 586.21 was paid to Olympiaki in July 2002.
In 2006, at the conclusion of a formal investigation procedure, the Commission decided that the State aid was compatible with the common market as regards the compensation paid for the period from 11 to 14 September 2000 up to a maximum amount of EUR 1 962 680. On the other hand, the Commission considered that the cancellation of the flights of 15 and 16 September 2001 and the ‘ferry flights’ were but indirect repercussions of the terrorist attacks. It also ordered the recovery of any amount of aid paid in excess of EUR 1 962 680.
On the other hand, the Commission considered that the cancellation of the flights of 15 and 16 September 2001 and the ‘ferry flights’ were but indirect repercussions of the terrorist attacks. It also ordered the recovery of any amount of aid paid in excess of EUR 1 962 680.
Olympiaki applied to the Court of First Instance for the annulment of the Commission’s decision in so far as it fixed the maximum amount of compensation compatible with the common market at EUR 1 962 680. It challenged the determination that no loss which arose after 14 September 2001 had a causal connection with the terrorist attacks of 11 September.
The Court of First Instance notes that the existence of a direct connection between the exceptional occurrence and the damage caused does not presuppose that they occurred at the same time.
The Court of First Instance annuls the Commission’s decision in so far as it concerns the compensation for the cancellation, on 15 September 2001, of the flight to Toronto, on the ground that the evidence on which the Community institution relied in order to substantiate the lack of a causal connection did not justify its determination. Further, the Court of First Instance annuls for failure to state reasons, the Commission’s decision in so far as it concerns the losses suffered by Olympiaki, first, on its network apart from the North Atlantic and Israel (about EUR 1 212 000) and, second, lost revenue amounting to about EUR 500 000 in respect of the carriage of goods and other costs incurred.

Source: European Court of First Instance press release>>.

"VAT: Commission takes steps against 8 Member States as regards the application of the travel agents' scheme"

As just stated by the EU Press Room, "The European Commission has formally requested Poland, the Netherlands, Portugal, France, Italy, Finland, Greece and the Czech Republic to amend their legislation with regard to the application of the special VAT 'margin' scheme for travel agents. The request is in the form of a reasoned opinion which is the second stage of the infringement proceedings provided for in Article 226 of the Treaty. If these Member States fail to comply with the reasoned opinion within two months, the Commission may refer the matter to the Court of Justice of the European Communities."

This Press Release is available in full text.

European Union: ECJ ruled against Greece in airline case

Greece failed to comply with a European Commission decision that aid to Greek carrier Olympic Airlines was illegal and should be recovered, ECJ ruled on Thursday.
A first decision of 11 December 2002 declared incompatible with the common market restructuring aid approved during the course of 1994, 1998 and 2000. Greece was asked to recover part of that aid, amounting to EUR 41 million. Since that decision was not implemented, the Court of Justice of the European Communities declared the action for failure to fulfil obligations to be well founded.
By a second decision of 14 September 2005, at issue in the present case, the Commission considered to be State aid, first, the restructuring of Olympic Airways as such, as well as the granting of financial assistance and the receipt, by that company, of other financial support; second, the receipt, by Olympic Airlines, of various forms of subsidies. These included rental payments for the sub-leasing of aircraft (approximately EUR 40 million), overvaluation of assets at the time the new company was created (approximately EUR 91.5 million), payment by the Greek State, instead of Olympic Airways, of certain bank loans and leases (EUR 8 million) and,finally, the continuous forbearance displayed by the Greek State towards Olympic Airways with regard to taxes and social security contributions (EUR 354 million). As set out in the decision, Greece was under an obligation to recover the various aids without delay, to immediately suspend the granting of any additional aid to Olympic Airways and Olympic Airlines and to inform the Commission of measures taken.
In the present action, Greece submitted, first, that the Commission had failed to provide a reliable method of calculation to make determination possible of the aid amounts to be recovered. Secondly, Greece challenged the validity of the decision.
The Court held, first of all, that Greece had not fulfilled its obligations, either by the end of the time period laid down by the Commission or by the date on which the present action was brought. In addition, Greece has not relied on any absolute impossibility to implement the decision.

Source: ECJ press release No 9/08 of 14. Feb. 2008

"Air transport: Commission takes note of today's Court judgment in the Olympic file"

According to the EU Press Room, "The Court of Justice today confirmed that Greece has failed to comply with a Commission decision adopted in 2005 finding that it had granted illegal and incompatible aid to Olympic Airways Services and Olympic Airlines, and asking for such aid to be recovered.
Vice-President Jacques Barrot, Commissioner in charge of transport, said in a statement: 'I take note of this ruling, which follows several rulings by the European Courts and decisions by the Commission in this dossier. It confirms the urgent need for a viable and legally sound solution to this file. This is in the interest of the European aviation sector, of Greek consumers and tax-payers, but also of the employees of Olympic Airways Services and Olympic Airlines and is indispensable in order to preserve a continuity of service to remote areas in Greece. Should it be the case that swift compliance is not achieved, I would have no choice but to propose to the College to file a new action with the Court of Justice, asking for the imposition of fines and periodic penalty payments.'."


This Press Release is available in full text.

"Single European sky: Commission takes Greece to the Court of Justice"

As stated by the EU Press Room, "The European Commission decided today to refer Greece to the European Court of Justice for failure to respect EU legislation on the establishment of a national supervisory authority in the context of the single European sky.
The single European sky framework regulation ^[1] entered into force in April 2004. It separates the provision of air navigation services on the one hand and the supervision and regulation of these services on the other hand. Member States are required to create or establish an independent national supervisory authority to assume the different tasks identified in EU-legislation including the certification of air navigation service providers and the on-going compliance oversight. Up to now, Greece has failed to fully establish an independent authority.
The Commission sent two reasoned opinions to Greece in December 2005 (IP/05/1609) and in June 2006 without receiving satisfactory replies.
Further Information on the single European sky, and in particular on national supervisory authorities is available on:
http://ec.europa.eu/transport/air_portal/traffic_management/nsa/index_en.htm.

[1] Regulation (EC) No 549/2004 of the European Parliament and of the Council of 10 March 2004 laying down the framework for the creation of the single European sky (OJ L 96, 31.03.2004, p. 1)"

Agreement on Tourism

The Greek Foreign Minister, Yeoryios Papendreou, arrived in Ankara on 20 January 2000 to discuss and sign agreements between the two states on investment, tourism and anti-terrorism measures.

(Originally posted by John Downes)

Greece and the Euro

The ECOFIN Council approved Greece's convergence programme for 1998-2001 which would enable it to meet the criteria required for it to join the single currency on 1 January 2001.