By amending the agreement, substantial convergence is achieved, both with the standard Greek positions, and with the principles of the Organization for Economic Cooperation and Development (OECD) to avoid international double taxation, according to a press release by the Finance Ministry.

The protocol marks the beginning of an ambitious economic cooperation between the two countries and constitutes the first vital step for Greece for the attraction of investments coming from the United Arab Emirates, which have shown keen interest in investing in various sectors of the Greek economy.

Earlier this month, Greek Foreign Minister Dimitris Avramopoulos met with his counterpart UAE Foreign Minister H.H. Sheikh Abdullah bin Zayed Al Nahyan and discussed ways of enhancing relations and cooperation between the UAE and Greece in various sectors, especially in investment, trade and energy.

Shaikh Abdullah pointed out that the diplomatic relations between the two countries were established way back in 1975, witnessing a steady stable growth in bilateral relations, including trade and investment.

On his official visit to Greece, Shaikh Abdullah Bin Zayed Al Nahyan, Foreign Minister, called on the governments of the European Union to grant UAE citizens a 30-day visa upon their arrival in the EU.

Greece has repeatedly and strongly supported the exemption of UAE nationals from the need to obtain a Schengen Visa. In March, Avramopoulos sent a letter to the EU Commissioner for Home Affairs Mrs Cecilia Malmstrom requesting that the United Arab Emirates be included to the group of third countries that are going to be transferred to the Annex II of the relevant EC Regulation, listing third countries whose citizens do not require a visa in order to travel to the Schengen Area.

Antonis Samaras said that he would increase low pensions and reintroduce benefits for big families and farmers. He said this would cost about EUR 550 million a year and that this money could be gained by increasing the tax on gambling games and reducing the deficits of public enterprises.

He added that retail bondholders would be compensated for the haircut; he also noted that he would not accept scraping the so-called 13^th and 14^th salaries.

ND leader reiterated his plan to introduce a 15% flat tax for businesses and reduce value added tax to 19%, 9% and 5%. Also, tax breaks will be put in effect for foreigners who want to settle in Greece. According to media reports, Samaras added that he would not introduce new levies and would tell Greece’s lenders: “There is no more money for taxes.”

According to Bloomberg, he argued for the need to release more funds from small businesses once the recapitalization of the Greek banks has been completed and said he would push for some EUR 6.5 billion owed by the Greek state to firms to be paid as soon as possible.

Samaras announced his plan to tackle bureaucracy, by limiting the number of ministries to 10 (from 15 today).

According to SKAI television, ND leader insisted that his government programme could not be implemented if it formed a coalition government with the Socialists.

He attacked PASOK, stressing that ” it has no plan” but only “to create and maintain the party’s armies” and addressing the left he said that “they wait for the crisis, hope the crisis and feed on the crisis.”

Double tax treaties are agreements to prevent taxing income twice by allocating taxing rights over this income between two countries. These types of treaties play a key role in encouraging investment and technology transfer, while allowing governments to retain taxing rights over the money that comes from those investments.

“International law places very few limits on the taxation sovereignty of countries,” Alex Trepelkov, Director of the Financing for Development Office in the Department of Economic and Social Affairs (DESA), told reporters at a press conference in New York. He added that income from cross-border investments may be taxable in both investor and recipient countries, something which can be prevented by setting adequate measures in place. “Double tax treaties play a key role in encouraging investment while allowing governments to retain appropriate taxing rights over the income deriving from those investments,” said Mr. Trepelkov.

Armando Lara Yaffar, Chairperson of the Committee of Experts on International Cooperation in Tax Matters, stressed that “the main objective of the revision of the UN Model has been to take into account recent developments in the areas of international tax policies relevant for both developed and developing countries.” Yaffar emphasized that one of the key elements of the UN Model is its aim to facilitate entry into bilateral tax treaties by developing countries, which would contribute to attaining their development goals.

The revised model, which had not been updated since 2001, also provides recommendations on how to combat corporate tax evasion as well as a set of rules for countries seeking to invest in developing countries.

According to a survey of 145 countries carried out by the Tax Justice Network, the cost of tax evasion last year amounted to $3.1 trillion in tax losses, which represents over 50 per cent of all of the countries’ combined healthcare costs.