Greek lenders are insisting on the imposition of additional reserve measures which, unfortunately, will further strengthen a recessionary trend, offering the final hit to the economy, the Federation of Hellenic Enterprises (SEB) said in its weekly economic bulletin.
SEB criticized the government for its insistence of raising taxes instead of cutting spending. The Federation noted that a a failure to complete negotiations between the government and the institutions was causing huge uncertainty in the economy, bringing back memories of a nightmare seen in the first half of 2015. “It is now certain that the economy was entering a new recessionary phase, with a mixture of policy based on an excessive burdening of consistent taxpayers so that a necessary, although not rationally planned cut in pension spending to be deferred to the future. Without taking measures to immediately restart the economy and combating tax evasion, this mixture of measures is a dead-end and threatens the society with more poverty,” SEB said in its bulletin.
The Federation noted that a tax and pension system, even after proposed changes, will continue to discourage through hurdles and overtaxation, honest and productive work, while the pension system will continue offering benefits not justified by contributions paid during the working life and at the same time fail to protect the weaker classes.
SEB said it was too early to reach any safe conclusions over the consequences of a refugee crisis on Greek tourism.
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