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524 PAUL MYLONAS AND GEORGE PAPACONSTANTINOUthe only large project to have been completed on schedule, and withoutlarge cost overruns. Similar structures have been used for the constructionof the low-pressure natural gas distribution system and can be extended toelectricity distribution as well. 10 Nevertheless, for existing public enterprises,raising additional resources from the private sector will require share capitalincreases (as equity sales accrue to the State), and, for the new ownershipto risk the additional investment, it will be necessary for these enterprises toimplement ambitious restructuring plans.III. The Role of RegulatorsThe move from a situation where sectors are dominated by state-runenterprises towards one of competitive markets would benefit greatly fromthe existence of regulators to act as competition arbitrators, especially in theearly stages of the transformation. The experience in other countries hasbeen to develop and strengthen the role of competition agencies, with economy-widecompetencies, as well as of sector regulators. In the case ofGreece, the role of the latter will be even more important in view of the multitudeof situations where liberalisation leaves the incumbents as verticallyintegrated firms (electricity, natural gas and telecommunications).Competition CommitteeThe Competition Committee has had little influence over policy to date.Its major role has been to decide on the appropriateness of mergers involvingprivate firms. Decisions on merger applications are an important activity,but perhaps lower on the list of priorities in Greece, compared with othercountries, in view of the large concentration of small firms, comprising onlyfew employees. Thus, in the case of Greece there appears to be a need forconsolidation. In recognition of the misplaced emphasis on mergers, legislationpassed in August 2000 raised the limit on the market share above whichthe Competition Committee must be informed in advance of the mergerfrom 25 per cent to 35 per cent.Moreover, the new legislation gave the Competition Committee morepower, since it strengthened its advocacy role. It can now choose the mar-10. A process which will simplify and thus speed up the approval of privately funded projectsis currently being implemented by the government.