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EU’s Finance Commissioner
Moscovici arrives in Athens today. Greece’s
government is planning to submit the next omnibus bill in local Commons, by
this Thursday.
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Following the 'better than expected' results of
stress tests, the Greek Banks rallied yesterday, helping to an increase of trading
volume (45 mios) and index (3.08%). More specifically, the Eurobank and
Alpha closed at +29% followed by National (+18%) and Piraeus (+7.6%). Attica
Bank which is a no-systemic small bank owned by TSMEDE (pension fund of engineers),
rejected commentaries which suggest that there will be a split between ‘good
bank’ and bad bank’.
·
According to UN Refugees
Agency, almost all refugees who entered EU in October came through Greek islands. More specifically, in an effort to reach central/western Europe, approx. 210,000 out
of a total of 218,000 refugees who entered in EU in October, passed from Turkey through
Aegean Sea, and landed to Greek islands (mainly the island of Lesvos).
·
According to Hellenic
Association of Tourism Enterprises’ Andreadis, the early bookings from UK, show
an increase of +6% vs. those of last year.
·
According to European
Central Bank, Greece may face an increase in unemployment, up to the level of 28.1%,
in 2016. Greece has the highest rate of unemployment (25%) and long-term
unemployment (73.1%) among the 28 EU countries. In addition, more than half of Greeks (52.4%)
aged 15-24 are out of job which is tripled compared to OECD average.
·
According to Social
Inclusion Monitor Europe, Greece gets the lowest score among the 28 countries
of EU, as regards Social Justice Index. This is due to low score in poverty
prevention, equal opportunities to education, access to job market, social inclusion
without discrimination, health and inter-generation justice. According to
Bergelsmann institute approx. 36% of Greek population faces the threat of poverty
and social exclusion; the situation has significantly deteriorated during the
last 6 years due to debt crisis and disinvestment. He added
that ‘the target is the shielding of the competitiveness of the Greek tourism
product, which must overcome a series of direct challenges such over-taxation,
illegal accommodation, boosting investor interest and corporate liquidity’.
Risk assessment. Greece gradually returns
to normality and reality. Up to now, Greece's government ratifies the frontloading
3rd MoU, with emphasis on the recapitalisation of Greek Banks,
pension cuts and taxation of those sectors which were not taxed in equal terms with the rest of local economy.
However, it becomes absolutely necessary to
see relaxation of taxation concerning a) this part of economy which couldn’t
tax evade such as employees, b) entrepreneurship which will generate jobs and c) real
estate which impacts several professions and can assist on repayments of loans
and citizens’ debt to the Greek state.
More specifically, local government needs to start from abolishing all hidden
costs which are called ‘isfores yper triton’ which concern contributions of citizens
and businesses to pension funds of local elites. In addition, it needs to
adjust or even abolish the so called ‘efapax’ (lump sum money) which is paid to new pensioners to those pension funds which are heavily subsidised by state budget.
In any case, Greece needs to implement a fair, transparent and stable tax system, in order to attract foreign investments with long
term time horizon, which reduce unemployment.
It also needs to invest in education in order
to reduce the skills mismatch. The vast majority of local universities is not
linked to market and still generate graduates of anachronistic and/or irrelevant
skills and background.
Last but not least, according to institute Bertelsmann 28.4% of Greece’s young populationaged 20-24 in 2014, were included in NEETs category (Not in Education,Employment, or Training). This doesn’t only represent a significant social and
economic problem but a time bomb for Greece’s existence as well.
