Raising the minimum salary, activating sector labor contracts, avoiding pension cuts and preserving the tax-free ceiling at the current level are the means to keeping the economy’s growth rate in positive territory, according to the General Confederation of Greek Labor (GSEE).
In its intermediary report on the Greek economy, the confederation notes that almost three-quarters of Greek salary workers (72.8 percent) get less than 1,000 euros per month, and warns that for the positive momentum to be sustainable in the economy there should be some mechanisms for the creation of incomes and cash flow.
GSEE also points out that the stability and solvency of Greek banks are entirely dependent on the creation of incomes and liquidity in the economy as that would bolster the quality of their assets and their deposit basis that have been undermined by the fiscal austerity policies and internal depreciation.
The report highlights that the drop in nominal hourly and daily wages in the 2010-18 period has come to 20 percent despite the relative rebound of the last few years. At the same time productivity has declined by 6 percent, reflecting the medium-term consequences of the destruction of the economy’s production capacity.