3 The effects of liberalization on coastal shipping and cruise
By virtue of Article 1 of Regulation 3577/1992, maritime cabotage is fully liberalized and the free circulation of maritime transport services was implemented for EU shipowners whose vessels are registered in and fly the flag of a Member State, provided that these vessels fulfill all conditions required to engage in cabotage activities within the flag State(1) Regulation of 7.12.1992 for the free circulation of services in maritime cabotage within member-states, Official Gazette of European Communities L 364/12.12.1992. . This Regulation revoked the privilege of coastal trading in vessels flying the Greek flag (cabotage) and imposed harmonisation of national law and order with the EU legislation during a transitional period, and no later than 1.1.2004(2) Alexandra P. Mikroulea, Competition and Public Service in Greek Cabotage.
At first glance, the Greek Government hesitated in the implementation of this Regulation presenting as the main argument the uniqueness of the Greek marine region, with numerous islands and hence several coastal lines, as well as, arguing that coastal shipping liberalization would threaten the social cohesion and imperair the national strategic and economic interests in the Aegean(3) Simantiraki Thanai, “Europeanization of shipping policy in Greece: Evaluating the impact on the policy network”, National University of Athens.. However, under the pressure of the tragic accident of the Express Samina in 2002, Greece enacted Law 2932/20012 in an effort to liberalize Greek coastal trading prior to the expiry of the exemption deadline Greece had been granted (on 1/11/2002). In this light, the law-maker liberalized the two services of maritime cabotage between ports in the islands, i.e. regular lines of passenger transport and ferries and transport conducted by vessels under 650 gt.