GREECE indirect taxes have been abolished in the case of exports to EC countries; they are still partially in force for exports to non-EC countries, but will be phased out by January 1992. Rebates on export loan interest have been abolished. 7. Protection of U.S. Intellectual Property Greece is a member of the Paris Convention for the Protection of Industrial Property, the European Patent Organization, the World Intellectual Property Organization, the Berne Convention for the Protection of Literary and Artistic Works and the Universal Copyright Convention. Greek laws extend equal protection on patents and trademarks to both foreign and Greek nationals. As a member of the EC, Greece must ensure that its laws are in harmony with those of the EC. The government's intention is to fully harmonize its law with EC standards. Law 1733 of 1987 harmonizes Greek laws on patents with the articles of the European Patent Convention and provides for the protection of patents for 20 years. National and conventional treatment of copyrights is accorded U.S. nationals and companies under an agreement signed between the governments of Greece and the United States on March 1, 1932. In addition, copyright protection is provided by both domestic legislation and the Berne and Universal Copyright Conventions. Illegal copying of software was criminalized with an amendment to the criminal law in 1988. Greek trademark legislation is fully harmonized with that of the EC. Foreign trademarks, whether registered in the country of origin or protected as common law trademarks, can be registered in Greece without submission of a home registration certificate or other evidence of ownership. Thus, foreign trademarks can be registered in Greece as Greek trademarks independently of any prior registration abroad. Under current legislation, trademarks are protected for 10 years and may be renewed for an unlimited number of 10-year periods. The United States believes that intellectual property rights continue to receive inadequate protection in Greece despite harmonization with EC law. Greece remains on the "watch list" under the "Special 301" provision of the 1988 Trade Act. In addition, the United States is growing increasingly concerned by widespread copying of audio tapes and illegal transmission and distribution of U.S. films and TV programs. All Greek workers except the military and police are entitled to form or join unions of their choosing. The right of association is provided for in the constitution and in specific legislation passed in 1978 and amended in 1982. Unions are highly politicized, with competing unions linked to political parties, but they are not controlled by the parties or the government in their day-to-day operations. There are GREECE no constraints on serving as a union official, and Greek unions are not restricted with regard to making international contacts or joining international trade union organizations. b. Right to Organize and Bargain Collectively The right to organize and bargain collectively was embodied in legislation passed in 1955 and amended in February 1990 to provide for mediation and reconciliation services as steps prior to compulsory arbitration. Anti-union discrimination is prohibited, and complaints of discrimination against union members or organizers may be referred to the labor union inspectorate or to the courts. There are no restrictions on collective bargaining for private workers, though social security benefits are legislated by parliament rather than won through bargaining. Civil servants, however, negotiate their demands with the Ministry to the Prime Minister and have no formal system of collective bargaining. c. Prohibition of Forced or Compulsory Labor Forced or compulsory labor is strictly prohibited by the Greek constitution and is not practiced. d. Minimum Age for Employment of Children The minimum age for work in industry is 15, although legislation and regulations provide for higher minimum ages for work in specified areas or specific jobs. e. Acceptable Conditions of Work Minimum standards of occupational health and safety are provided for by legislation. Although the Greek General Confederation of Labor (GSEE) has characterized health and safety legislation as satisfactory, it has also charged that enforcement of the legislation is inadequate. f. Rights in Sectors with U.S. Investment Although labor-management relations and overall working conditions within foreign business enterprises may be among the more progressive in Greece, worker rights do not vary according to the nationality of the company, plant, or project. (D)-Suppressed to avoid disclosing data of individual companies (*)-Under $500,000 Source: U.S. Department of Commerce, Survey of Current Business August 1990, Vol. 70, No. 8, Table 13 * Section 8 is an abridged version of Section 6 of the Greece country report included in the Department of State's Country Reports on Human Rights Practices for 1990, submitted to the Congress January 31, 1991. For a comprehensive discussion of worker rights, please refer to that report. 1/ Differs from Hungarian figures, which consistently show approximately 50 percent more U.S. imports entering Hungary. The Hungarians argue that because nearly all U.S. exports enter Hungary through third countries, some of what the U.S. counts as exports to other countries such as the FRG actually exports to Hungary. 1. General Policy Framework - - are In a dramatic and successful political transformation, Hungary's first democratically elected government and Parliament in over 40 years assumed office in May 1990. HUNGARY Beginning work immediately to overcome decades of communist mismanagement, the new leaders could find a few advantages in an otherwise dismal economic scene. The set of reforms launched in 1968, long before Mr. Gorbachev's introduction of perestroika in the Soviet Union, to improve economic performance and development had evolved for more than twenty years and helped Hungary achieve a higher level of economic decentralization, private initiative, market orientation and social pluralism compared to other Eastern European countries. Yet, despite reform efforts, economic results in 1989 and 1990 remained disappointing. Gross domestic product (GDP) about 60 percent of which still passes through the central government stagnated then contracted in real terms, and budget deficits exceeded projections. In 1990 a promising trade and current account picture worsened in the third quarter with cuts in Soviet energy deliveries and higher world market oil prices. However, most observers believed Hungary would still better its IMF target of a year-end current account deficit not over $400 million. Inflation, officially forecast in late 1990 at about 30 percent, but considered by many to be higher, and the reduction of consumer subsidies causing lowered living standards for many have become serious political issues. Under planned austerity and restructuring programs unemployment may reach 100,000, up from the officially reported 50,000. Profitability of state firms remains particularly elusive, yet only a small percentage of mostly smaller units have been closed. Subsidies to others, in spite of some cuts, remain stubbornly high, and debts between companies are estimated to exceed $2 billion. The near collapse of CMEA trade in 1990 with an expected 26 percent decline in Hungarian exports probably will be followed by a comparably large drop in 1991. The conversion to real pricing and dollar accounting has added to the social pressures as formerly protected but obsolete firms shut down. In addition, Hungary's $21 billion gross hard currency debt, the highest per capita in Europe, will grow as medium and long-term debt matures and continued financing is needed to cover balance of payments shortfalls. Hungarian central bankers remain committed to meeting these debt obligations. The Government cites the experience of March 1990 when international banks, nervous about Eastern Europe in general, stopped renewing short term credits in the National Bank of Hungary, bringing Hungary to the brink of insolvency, in spite of substantial improvement in the trade balance. A Bank for International Settlement bridge loan of $280 million was able to reverse the outflow. The main engine for reform in Hungary during 1991 and well into 1992 will be the soon-to-be-approved reform program to be supported by an IMF Extended Fund Facility (EFF). Hungarian officials hope that a detailed 3-year economic program to be presented before parliament in late 1990 will include the right mix of austerity and liberalization measures to balance internal and external accounts while encouraging industrial restructuring and transition to a private market economy. |