Greek taxes on firms moving their headquarters to the country are not in line with European Union rules, the European Commission said yesterday, adding it would take Athens to the EU’s highest court. “The European Commission has decided to take Greece to the Court of Justice because its tax legislation, applicable to the raising of capital, does not conform with EU law,” the Commission said in a statement. Greece levies a capital duty when a company transfers its registered office or effective management to Greece but exempts agricultural and maritime firms from this duty. The EU executive considers these rules as violating EU rules, which allow member states to impose capital duty only when a company is set up, not when they transfer office. Nor do EU rules permit Greece to exempt entire sectors from the tax. (Reuters)

President Ernest-Antoine SeilliŽre, president of the French Employers Association (Medef), yesterday was elected president of the Union of Industrial and Employers’ Confederations of Europe (UNICE), to replace Dr Jurgen Strube on July 1. UNICE’s vice president, and chairman and CEO of the Federation of Greek Industries (SEV), Odysseas Kyriakopoulos, a former favorite for the post, said after the election that the EU can maintain its social model and environmental protection provided it focuses on the Lisbon strategy for development, competitiveness and employment as well as accelerating structural reforms on the European and national level. He also referred to the relaxation of the Stability Pact, stressing that for development to be sustainable, it must rely on a healthy economy and not on additional borrowing.

The Culture Ministry is reportedly concerned about the financial problems of construction firm ALTE, the contractor for the new Acropolis Museum. The project is currently continuing at a relatively brisk pace, but the ministry recently discussed ways of avoiding a possible deadlock for the project whose budget approaches 50 million euros. Proposals included the participation of other construction companies, although the 19 percent discount offered by ALTE for the project is considered a disincentive.

The Capital Market Commission revoked yesterday the license of the Standard stockbrokerage and investment services company, putting it into liquidation. The company had committed serious and repeated violations of capital market legislation, using funds and client shares for its own benefit, while also having financial problems.

British Airways announced the resumption of flights between London Gatwick and Thessaloniki from this coming Sunday, with four flights per week and special return fares of 200 euros including taxes until May 31. BA returns to Macedonia Airport after high demand by British tour operators, whose customers are increasingly interested in Thessaloniki and Halkidiki. Also, BA’s subsidiary, GB Airways, will fly twice a week from London to Iraklion, Crete, from May 3.