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30% drop in turnover stifles Greek merchants this spring

10 May 2010 / 14:05:28  GRReporter
3088 reads

Victoria Mindova

On average 30 percent has decreased the average monthly turnover of companies and enterprises in 2010 compared to last year and prospects are that this economic market rate will continue to shrink. This pessimistic prediction comes from the President of the Hellenic Chamber of Commerce Vassilis Korkidis. The increase in VAT and excise duties as well as the decline in total income of citizens in combination with uncertainty about tomorrow damaged the Greek domestic market. This led to the closure of many small and medium enterprises and retail outlets in the last year. The new economic conditions in Greece, introduced by signing the contract for financial assistance with the IMF and the Eurozone countries, create obstacles for the revival of business in the country. Therefore, the Hellenic Chamber of Commerce issued a package of proposals to the Ministry of Economy, Trade and Commercial Fleet for enhancing the commercial enterprises in Greece. 

At a meeting with journalists Vassilis Korkidis called on private owners and public institutions that give commercial premises to reduce rent prices of rented premises as part of measures to support the local market. "Today, owners of buildings should seek secure rent and not a high one," said Korkidis. He stressed that in the past two months, traders have been hit by a 4% VAT increase and under these circumstances, there is no opportunity for further reduction in prices of goods and services. Reducing consumer income and the negative psychology of the market as a whole, block trade within the country and help the increase of recession. 

Traders are adamant that the government should create more favourable conditions for development and stabilization of the domestic market, otherwise expected are losses of about €30 billion by the decline in turnover by the end of 2012. Meanwhile based on the plan for reduction of government expenditure and reduction of employees in public administration, the private sector and most trade will be burdened with about 250,000 civil servants. Unemployment is already knocking on the door of small traders, 70 percent of whom said they may resort to layoffs by the end of the year only to avoid a possible bankruptcy. The study was conducted in cooperation with ICAP and gives a sample of the state of commercial circles in the country. According to the same survey 90% of respondents will not be able to invest in their own enterprises this year. 

Therefore, the President of the Chamber of Commerce asks the Ministry of Economy to immediately start up the programs for financing the small and medium businesses, reducing tax rates for traders and introducing new effective policies to combat grey economy.

Tags: Greece economy crisis measures reforms
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