Bailout Reforms Put Heavy Pressure on Greece’s Shipping Industry

Greece’s world-leading shipping industry is coming under increasing pressure to carry a big part of the new taxes the new bailout agreement requires. But industry executives and supporters say higher taxes threaten to drive away a business that employs more than 200,000 people and contributes around 7.5 percent of Greece’s gross domestic product. By comparison, tourism directly contributes about 600,000 jobs and 9 percent of GDP.

As part of negotiations with creditors for a third bailout, the Greek government has agreed to increase the tonnage tax - a flat, annual rate, based on a ship’s capacity, that is now roughly harmonized across the European Union. Greece also would gradually abolish some tax benefits that other EU countries also offer, the report says.