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Greece's rich: insulated against an EU exit Greece's rich: insulated against an EU exit
(35 minutes later)
The security guard wrinkled his brow at the sight of an unfamiliar face. But when he found the name of the Guardian’s correspondent, left at the gate by a member, his demeanour changed.The security guard wrinkled his brow at the sight of an unfamiliar face. But when he found the name of the Guardian’s correspondent, left at the gate by a member, his demeanour changed.
“Parakalo,” he said with a warm smile, handing over a card to open the turnstile. Either side, the walls were thick and high.“Parakalo,” he said with a warm smile, handing over a card to open the turnstile. Either side, the walls were thick and high.
The country club, on the outskirts of Athens, was laid out with an extravagance in the use of space that you seldom find outside the Americas. In the clubhouse, set amid towering pines, there were corridors as wide as rooms, and rooms the size of basketball courts. But perhaps the most striking thing about the club was that it was opened after the onset of Greece’s never-ending financial emergency.The country club, on the outskirts of Athens, was laid out with an extravagance in the use of space that you seldom find outside the Americas. In the clubhouse, set amid towering pines, there were corridors as wide as rooms, and rooms the size of basketball courts. But perhaps the most striking thing about the club was that it was opened after the onset of Greece’s never-ending financial emergency.
Since then, Greece has become notorious for deprivation. According to EU figures, 23% of Greeks were poor or “at risk of poverty” in 2012, the last year for which comparative statistics were available. It was the highest proportion in the EU and has almost certainly risen since.Since then, Greece has become notorious for deprivation. According to EU figures, 23% of Greeks were poor or “at risk of poverty” in 2012, the last year for which comparative statistics were available. It was the highest proportion in the EU and has almost certainly risen since.
Yet the Hellenic world has also been famed throughout history for the wealth of individuals: from Croesus, the semi-legendary king of Lydia, to the “Golden Greeks”, the shipping magnates Stavros Niarchos and Aristotle Onassis.Yet the Hellenic world has also been famed throughout history for the wealth of individuals: from Croesus, the semi-legendary king of Lydia, to the “Golden Greeks”, the shipping magnates Stavros Niarchos and Aristotle Onassis.
This is the first time that Greeks of all classes are really worried that it could end badlyThis is the first time that Greeks of all classes are really worried that it could end badly
The statistics indicate that income distribution is more unequal in Greece than in any EU country except Spain. But, said Andreas Paterakis, the idea that it is packed with plutocrats is mistaken.The statistics indicate that income distribution is more unequal in Greece than in any EU country except Spain. But, said Andreas Paterakis, the idea that it is packed with plutocrats is mistaken.
“It’s a myth coming from the days of Onassis and the other shipping billionaires,” said Paterakis, the regional president for south-eastern Europe of the security firm G4S. “There are 10 or 15 families who control the media, banks and insurance. There are things that could improve, notably the relations of these people with the tax authorities. But I really don’t think they are a priority for the Greek government.”“It’s a myth coming from the days of Onassis and the other shipping billionaires,” said Paterakis, the regional president for south-eastern Europe of the security firm G4S. “There are 10 or 15 families who control the media, banks and insurance. There are things that could improve, notably the relations of these people with the tax authorities. But I really don’t think they are a priority for the Greek government.”
Related: Greece bailout talks break down againRelated: Greece bailout talks break down again
Paterakis said his company provided physical and property protection for some “high net worth individuals”. “But,” he said, “it is only a small part of our business.”Paterakis said his company provided physical and property protection for some “high net worth individuals”. “But,” he said, “it is only a small part of our business.”
The latest annual list of the world’s richest men and women produced by the magazine Forbes seems to bear out this view. It contains just three Greeks – one fewer than in 2008 before the onset of the crisis. The highest placed is Philip Niarchos, Stavros’s son, and with a fortune of $2.5bn, he only ranks 737th.The latest annual list of the world’s richest men and women produced by the magazine Forbes seems to bear out this view. It contains just three Greeks – one fewer than in 2008 before the onset of the crisis. The highest placed is Philip Niarchos, Stavros’s son, and with a fortune of $2.5bn, he only ranks 737th.
But earlier this year Bloomberg estimated that at least four more Greek citizens – all shipping owners – had assets of more than a billion.But earlier this year Bloomberg estimated that at least four more Greek citizens – all shipping owners – had assets of more than a billion.
Crisis-stricken Greece still has the world’s largest merchant fleet and shipping has long been the prime source of its super-rich. What makes them especially controversial is that, under rules incorporated in the constitution, they pay no tax on international earnings brought into Greece.Crisis-stricken Greece still has the world’s largest merchant fleet and shipping has long been the prime source of its super-rich. What makes them especially controversial is that, under rules incorporated in the constitution, they pay no tax on international earnings brought into Greece.
On Monday, several captains of industry and finance were spotted at a demonstration in Athens’s main square to call for continued membership of the euro.On Monday, several captains of industry and finance were spotted at a demonstration in Athens’s main square to call for continued membership of the euro.
“I recognised several CEOs there,” said Vagelis Tsogas, a corporate communications consultant. “There was a mix of young, well-educated Greeks and members of the financial elite. I think that this is the first time since the start of the crisis that Greeks of all classes are really worried that it could end badly.” “I recognised several CEOs there,” said Vagelis Tsogkas, a corporate communications consultant. “There was a mix of young, well-educated Greeks and members of the financial elite. I think that this is the first time since the start of the crisis that Greeks of all classes are really worried that it could end badly.”
Membership Event: Guardian Newsroom: Can Greece be saved?Membership Event: Guardian Newsroom: Can Greece be saved?
But, while the CEOs who improbably rallied in Syntagma Square dread the prospect of their firms being shut out of the single currency zone if the talks fail, the ship owners could see their businesses jeopardised if the negotiations succeed. A leaked draft of the proposals tabled by Greece’s creditors includes a demand that the government “phase out special tax treatments of the shipping industry”.But, while the CEOs who improbably rallied in Syntagma Square dread the prospect of their firms being shut out of the single currency zone if the talks fail, the ship owners could see their businesses jeopardised if the negotiations succeed. A leaked draft of the proposals tabled by Greece’s creditors includes a demand that the government “phase out special tax treatments of the shipping industry”.
At a personal level, Grexit would hit the finances of even the wealthiest. Reintroduction of the drachma could mean that overnight their property and other assets in Greece were reduced in value by as much as 50%. But they long ago took steps to ensure that those Greek-based assets were reduced to a minimum.At a personal level, Grexit would hit the finances of even the wealthiest. Reintroduction of the drachma could mean that overnight their property and other assets in Greece were reduced in value by as much as 50%. But they long ago took steps to ensure that those Greek-based assets were reduced to a minimum.
A senior banker, speaking on condition of anonymity, said that after 2008 when the collapse of Lehman Brothers threatened to spark a global financial meltdown, large numbers of wealthy Greeks withdrew money from the private banking arms of global banks and paid it into the Greek system.A senior banker, speaking on condition of anonymity, said that after 2008 when the collapse of Lehman Brothers threatened to spark a global financial meltdown, large numbers of wealthy Greeks withdrew money from the private banking arms of global banks and paid it into the Greek system.
But as the crisis focused increasingly on Greece, the flow reversed. And it did so long before the panic withdrawals that were last week draining the banks of around €1bn a day.But as the crisis focused increasingly on Greece, the flow reversed. And it did so long before the panic withdrawals that were last week draining the banks of around €1bn a day.
“Between 2010 and 2012, we lost deposits to the tune of €80bn,” said the banker. “We estimate that, of that, €20bn was high net worth individuals sending their money abroad. The smart money was the first to leave the country.”“Between 2010 and 2012, we lost deposits to the tune of €80bn,” said the banker. “We estimate that, of that, €20bn was high net worth individuals sending their money abroad. The smart money was the first to leave the country.”