Shipping can help Greece exit the crisis, think-tank says

The leading role of Greek shipping globally is an advantage Greece should use to help it exit the crisis, according to a report released Tuesday by the Foundation for Economic & Industrial Research (IOBE).

In its special report, the think-tank said that Greek shipowners control more than 4,065 freighters, the majority of which are oceangoing vessels. Most Greek-owned vessels are registered under foreign flags, it said, and over 52 pct of shipping companies listed in the NYSE and NASDAQ are owned by Greek nationals. Water transport contributed over 4 pct of the Greek economy's gross value added, with the largest share held by oceangoing shipping. The sector is second to that of real estate in terms of value added per employee.

IOBE warned that "An abrupt – and without due care – change of the taxation regime in the shipping sector may lead to reduction of the economic activity in the sector and across the economy, significant job losses and even lower net tax revenues," as maritime shipping contributed directly and indirectly more than €790 million of tax revenues in 2008, and it called for political and economic stability, the independence of the sector from the electoral cycle, and the adoption of a strategic development plan with a broad political and social support.

SOURCE: ATHENS NEWS AGENCY