Talks in Greece between unionists representing taxi drivers and Greek Transport Minister, Evripidis Stylianidis, have produced a “gentleman’s agreement” that will allow cabbies to gradually increase their fares by 100 percent over the next year, in exchange for improved service to customers.

On May 1, fares will increase to 48 cents, from 36 cents, with another 12 cent increase to 60 cents to take effect in November 2009. The final hike is due in May 2010 when the rate will increase to 72 cents per kilometre.

The minimum charge for a cab journey will remain at 3.80 euros  but the cost of ordering a taxi by telephone will increase to 5 euros from the current charge of  2.80 euros.

Additional concessions granted to taxi drivers include access to bus lanes, which cabbies will be able to use on weekdays – but not during the peak periods of 10 a.m. to 1 p.m., and 6 p.m. to 9 p.m.-  and only if they have a passenger.

In exchange, taxi drivers will be obliged to improve their treatment of passengers and cease illegal practices such overcharging passengers and taking on multiple passengers.

“Improvement means cleaner vehicles, better behaviour, customer service for passengers and the strict observance of the law,” Stylianidis said last week.

It remains unclear as to how the new  deal will be monitored.

Sources said taxi unions will be asked to self-monitor  their behaviour whilst police will carry out periodic checks.

A presidential decree foreseeing strict fines for offending cabbies, signed by Minister Evripidis Stylianidis last week, is expected to have some impact.

 Drivers who refuse to pick up a passenger or take multiple fares will face fines of up to 1,200 euros.