ECONOMY

EU says PCT must return tax benefits

The European Commission’s Directorate-General for Competition (DG Comp) considers the Greek state subsidies received by Cosco’s subsidiary in Piraeus to be illegal as they do not comply with European Union law.

Brussels deems the tax exemptions and other such interventions that Piraeus Container Terminal (PCT) has enjoyed since signing its agreement with Piraeus Port Authority in 2008 to be state subsidies.

In a statement on Monday the European Commission ordered the Greek state to recover the lost tax revenues from PCT and ban any such exemptions in the future. DG Comp argued in its report that the financial advantages granted to the Cosco subsidiary as a part of the concession contract raised issues of unfair competition vis-a-vis rival companies.

Cosco sources told Kathimerini they will appeal the Commission’s decision.