With this bill, the role of the Superfund changes significantly and becomes more developmental, while the mode of operation of its subsidiaries becomes more flexible, following the model of PPC. At the same time, a National Investment Fund is being created to boost investments.
The Minister of National Economy and Finance Kostis Hatzidakis stated:
“The restructuring of the Superfund is an important reform. Following the successful example of PPC, the subsidiaries of the Superfund (such as ELTA and public transport) will become more flexible and efficient.
The establishment of the new National Investment Fund will, without doubt, have a significant contribution to support Greece’s investment effort. And the new Superfund governance model that is being adopted – by merging the TAIPED and the HFSF into the Superfund – is proof of the progress that has been made in the Greek economy in recent years and the transition to a new era”.
In more detail, the bill of the Ministry of National Economy and Finance provides for the reformation and reorganization of the Superfund, specifically:
The establishment of a more modern governance model for the Superfund.
The modernization, according to the “PPC model”, of the operating framework of eight of its subsidiaries, so that they do not face problems in recruiting staff and attracting competent executives from the market, as well as in supplies critical to their operation (e.g. supply, maintenance and repair of city buses).
The absorption of the T.X.S. and of T.A.I.PE.D. from the Super Fund.
The establishment of an Investment Fund, which will utilize as its initial investment capital half of the compensation from the reacquisition of E.Y.D.A.P. and of E.Y.A.Th. from the State to finance development investment activities, which will have a significant impact on the social and economic development of the country.
In more detail, the basic interventions of the bill include the following:
“PPC model” in the public enterprises of the Superfund for better service to the citizens. It concerns the following companies:
Hellenic Post (and their 100% subsidiary: ELTA Courier).
ΔΕΘ-Helexpo.
Organization of Central Markets and Fisheries (OKAA).
Central Market of Thessaloniki (KATH).
HELLO.
Hellenic Alykes.
Corinth Canal Company Anonymous (AEDIK).
OASA Athens Transport Group (OASA and its 100% subsidiaries: Road Transport – OSY and Fixed Transport – STASY).
Following the successful model that led to the consolidation and modernization of PPC, the draft law provides for:
The ability to attract executives from the private sector with a simple procedure, based on the decisions of the CEO of each company. To date, the process envisaged is time-consuming, highly bureaucratic and disincentive for anyone seriously interested in claiming an executive position in one of the Superfund’s subsidiary companies. The term of office of executives (general managers and directors) is increased from 3 years to 4 years with the possibility of renewal once.
Flexibility in the salaries of ELTA executives and other entities outside the General Government, while in the subsidiaries within the General Government (public transport and GAIAOSE) the salaries will be in accordance with the standard of the EFKA.
More flexible recruitment procedures for their staff, with a limited but essential role of ASEP: checking the legality of the announcement within 10 days and participation of its member in the examination of objections during the recruitment process.
More flexible procurement, always in line with EU law. The procurement regulation is submitted to EADISY, which will have the opportunity to express an opinion within 60 days as to its compatibility with European law.
The establishment of independent disciplinary councils without the participation of trade unionists.
New, modern governance model of the Superfund
The responsibilities of the body that until now was known as the Supervisory Board are limited, so that they correspond to a supervisory body of the Superfund and not daily administration. To emphasize the new role of this body, it is renamed to the Corporate Governance Council (CGB). Acts of daily management, in which the former Supervisory Board/now SED no longer has a role, are the increase of the Superfund’s share capital, the recall of the members of the Boards of its direct subsidiaries and the publication of the company’s financial statements.
With these changes, the Superfund’s Board of Directors becomes the body exclusively responsible for the management of the company, as is the case in all modern corporate forms. In addition, the representation of the Greek State in the SED is now institutional and will be done by one of the Secretaries General of the Ministry of National Economy and Finance, one of the Deputy Governors of the Bank of Greece and the Director General of ODDIX. In this way, the institutions are represented, whose operation has the greatest relevance to the new role of the Superfund, especially following the absorption of the HFSF and TAIPED.
Mergers through the absorption of TAIPED and THF in the Superfund
The mission of both the TAIPED and the HFSF has been largely completed. After all, based on its constitutive law, the HFSF has a duration until December 31, 2025.
The merger of TAIPED and Superfund will take place following decisions of general meetings of the merging companies that will be taken until December 31, 2024. By then, a Ministerial Decision will have been issued for the absorption of the HFSF by the Superfund.
It is noted that the merger of TAIPED and the Superfund does not affect the autonomous operation of the Project Maturation Unit, which will continue to operate under an appointed consultant with autonomy status, as is currently the case. A consultant of the Superfund will undertake the internal reorganization of structures and bodies following the merger.
The new National Investment Fund is created
For the creation of the Fund, the Superfund will allocate 300 million euros, i.e. half of the amount it will collect from the re-transfer of the shares of EYDAP and EYATH to the State.
An investment tool is thus created, similar to those operating in most European Union countries, which will provide incentives for development initiatives, especially in sectors that are not sufficiently covered by current investors but have added value for the economy.
Its main features are specified in the proposed draft law:
will implement investments in Greece, in dynamic sectors of the economy, where there is an investment gap, without competing with existing funds,
will draw up a three-year business plan, which will be approved by the general meeting of the Superfund,
will be able to participate as a co-investor with other funds and institutions mainly with minority participations in investments or with hybrid instruments,
its investment capital that will be disinvested, will be reinvested in accordance with the Investment Policy, in a way that will not affect the national accounts,
the selection of its administrative team will be made by the Superfund based on the criteria of scientific training-proven high technical knowledge and many years of experience in matters of finance, investments, financing of large projects, etc.,
the Superfund has hired an international consulting firm that will recommend the most appropriate corporate structure and organization of the new Investment Fund. The proposal will be submitted for approval by the Ministry of Finance.
It is noted that the Fund’s investment activities include projects in Greece or of a cross-border nature and businesses that promote the Greek economy with development prospects, strong competitive advantages, effective management teams and outward-looking activity, indicatively in the following sectors:
in cutting-edge sectors of the Greek economy with strategic priority, such as green transition, circular economy, blue economy and technological and digital transformation investments, as well as strategic and critical mineral raw materials,
in energy investments and the corresponding infrastructures and networks,
in transport and related infrastructure sectors,
in technology industries and blockchain and artificial intelligence investments, and
in development and technological infrastructures.
The text of the draft law has been posted at the address
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