German electronics giant Siemens and Greece have reached a 270-million-euro ($357 million) deal to end a decade-old bribery scandal, the finance ministry said Thursday. Siemens will hand over 90 million euros to the Greek government to help it fight corruption and 80 million euros to help it pay off debts.
In addition, the German group will "invest 100 million euros in Greece in 2012", and will "examine the possibility of setting up a 60 million euro production plant" in the country, the ministry said. Siemens also "apologises to the Greek people, parliament and government" and will take measures to fight corruption in its Greek branch, the ministry added. The Greek government last year demanded compensation from the German giant which has admitted keeping a slush fund to obtain foreign contracts.
While the deal, agreed to by the cabinet, settles the question of "administrative fines", it does not close the door to judicial prosecution. The deal must still be ratified by parliament, the finance ministry said in a statement. A Greek parliamentary committee has determined that inflated contract prices cost the country more than two billion euros during the 1990s.