Steel containers waiting to be transported in Piraeus port in Athens, Greece. (Photo : Reuters)
China’s assistance is expected to increase the chances of Greece to remain within the European Union (EU) and the Eurozone, following the visit of Greek Prime Minister Alexis Tsipras to China that began on Saturday, July 2, and the ratification of a deal by Greek Parliament to sell a majority stake in the Piraeus port to COSCO, the Global Times reported.
The agreement, considered as a landmark deal, was ratified by Greek lawmakers on Thursday, June 30, which enables China's COSCO Shipping to acquire a majority stake in Piraeus Port Authority (PPA).
A report by Xinhua said that under the agreement, which was sealed in April this year, a total of 280.5 million euros ($311.52 million) will be paid by COSCO to the Hellenic Republic Asset Development Fund (HRADF), Greece's privatization fund, for the 51 percent stake in the PPA and the ports management.
"COSCO's investment in the Piraeus port has been one of the most substantial investments of the last decade in Greece and is a model of cooperation between an EU member state and China," Vasilis Trigkas, an Onassis Scholar at Tsinghua University, said.
Trigkas added that Piraeus could become one of the most important ports of EU, as COSCO had already upgraded the port, with additional R&D parks to be built for Chinese tech firms such as Alibaba, Huawei and Tencent.
The Xinhua report said that the port could also serve as a gateway for Chinese products as COSCO's control of the port had extended China's One Belt, One Road initiative further.
Trigkas said that the participation of China could contribute to stability in the Middle East while supporting China's energy security. He added that with a stable Eastern Mediterranean, the flow of refugees will be restricted as well as reduce anti-globalization and anti-EU influence.
The Greek PM's visit, the first in 10 years, was aimed at exploring other possible agreements in the field of culture, transport, tourism and other areas.
