Mr. Rehn’s statement was in reaction to a written question tabled by independent Euro MP Kriton Arsenis, who inquired as to why ownership of five school buildings in the town of Thessaloniki, northern Greece, was transferred to Greece’s privatizations’ agency HRADF, also know as TAIPED.

In his answer Mr. Rehn concludes that “[t]he Commission is not aware of the transfer of ownership of five school buildings in Thessaloniki to TAIPED. The ownership status of a building per se is not a meaningful criterion to merge or close schools, hospitals and other services in order to ensure better use of public money. Furthermore, public schools and hospital buildings are not included in the privatisation program”.

Complete Rehn statement below :

Answer given by Mr Rehn on behalf of the Commission

Real estate is an important asset in Greece. Better management could boost scale economies and efficiency and lower market prices. The transactions for the privatisations of public buildings are organised as direct sales without PPP. For infrastructure or productive activity financed by EU Structural and Cohesion Funds, changes in ownership should take into account the durability requirements of Article 57 of the Council Regulation (EC) No 1083/2006.
Decisions on the share sales or the full ownership transaction sales are governed by Article 345 TFEU, according to which Member States are free to decide on the system of property ownership rights. In line with the EU Court of Justice decision Case C-244/11 (Commission versus Greece, paragraphs 15 and 16), this provision does not exempt the Member States’ systems of property ownership from the fundamental rules of the EU Treaty, such as the right of establishment and the free movement of capital (Articles 49 and 63 TFEU). However, the outcome of the sales process can be subject to EU and national regulatory scrutiny if this is foreseen by EU or national legislation.
EU Public Procurement rules do not apply to the sale of property by contracting authority, unless it results in an award of a public contract or a concession.
The Commission is not aware of the transfer of ownership of five school buildings in Thessaloniki to TAIPED. The ownership status of a building per se is not a meaningful criterion to merge or close schools, hospitals and other services in order to ensure better use of public money. Furthermore, public schools and hospital buildings are not included in the privatisation program.