Thursday August 21, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
SEV sets out six reasons why prices in Greece aren't falling

Greece's biggest employers group on Thursday said that rising costs, poor infrastructure, higher borrowing costs and red tape were among the main reasons that the cost of goods in the country has not dropped despite the ongoing crisis.

In a memo sent to the Development Ministry on Thursday, the Hellenic Federation of Enterprises (SEV) set out six reasons for the stubborn prices. These were:

1. Soaring energy costs as a result of higher energy rates, including a special tax tagged on electricity and gas bills.

2. The escalating cost of mostly-imported raw materials.

3. Poor infrastructure services. The report cited the substandard cargo loading and unloading facilities at the port of Volos, in central Greece, as an example.

4. The high transport costs which undermine competition.

5. The extra financial strain caused by the doubling of borrowing costs over the past year, the deterioration of payment terms for imported materials (e.g. packaging materials), the significant increase in taxes, and the long delay in VAT reimbursement.

6. Red tape and a complex administrative structure.

“Compressing labor costs is not fundamental in reducing prices,” SEV said in the memo. “A good example is energy intensive industries where energy costs make up for 40-50 percent of production costs. To offset the recently-imposed 20 percent rise in energy bills you would have to reduce labor costs by 80percent,» it said.

The federation said that the key steps for reducing the prices of manufactured products were lowering taxes, removing regulatory and administrative barriers, and improving the efficiency of the notoriously dysfunctional state apparatus.

Greece's international lenders, the International Monetary Fund and the European Union, have demanded a reduction in labor costs to make the country more competitive.

But many Greeks, who have seen their disposable income plummet over the last few years, are frustrated that the cost of living has not fallen as well.

Tens of thousands of demonstrators took to the streets of Athens on Wednesday in protest at the anticipated cuts.

ekathimerini.com , Thursday September 27, 2012 (14:34)  
Eurozone business growth slows in July, prices fall: PMI
Merkel cites euro’s ‘construction flaws’ as economy sputters
Greek stocks post rise of 0.99 percent
Banks reject stress test concerns
Elderly man remanded in custody over son´s murder
A 75-year-old man accused of the murder of his son 39-year-old son whose burned remains were discovered in a car near the town of Astros in the Peloponnese last Friday was remanded in custod...
Inspectors visit Rhodes to probe reports of mass food poisoning of hotel guests
The Tourism Ministry has sent a team of inspectors from the Greek National Tourism Organization (GNTO) to the island of Rhodes in the Dodecanese to investigate claims that a large number of ...
Inside News
SOCCER
Greek soccer officials in refereeing probe to face prosecutor on Sept 15
Eleven soccer officials were on Wednesday given until September 15 before they have to face prosecutor Aristidis Koreas, who is investigating allegations that the draws to decide which match...
ATHLETICS
Long jumper Tsatoumas takes Greece´s second silver at European Championships
Greece won its second medal at the European Athletics Championships in Zurich, Switzerland, on Sunday with Louis Tsatoumas coming second in the long jump. Briton Greg Rutherford won the even...
Inside Sports
COMMENTARY
Self-destructing political system
It finally seemed as if we had found some peace of mind. The vast majority of Greek MPs chose to abstain from festivities on August 15, also known as Assumption Day, thus sparing us from the...
EDITORIAL
Welcome movement
Many have spoken about the need to spur economic growth in this debt-wracked country, but very few officials seem to actually be doing anything meaningful to make this happen. Recent weeks h...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Elderly man remanded in custody over son´s murder
2. Inspectors visit Rhodes to probe reports of mass food poisoning of hotel guests
3. Avramopoulos in US for talks with Hagel on possible Greek role in peace missions
4. Three held on Rhodes over human trafficking accusations
5. Elderly parents face Nafplio magistrate over murder of son
6. Brussels warns Greece over plans to allow construction near Korinos beach
more news
Today
This Week
1. Merkel cites euro’s ‘construction flaws’ as economy sputters
2. Second man held over double murder in Mani
3. Brussels warns Greece over plans to allow construction near Korinos beach
4. Eurozone business growth slows in July, prices fall: PMI
5. Avramopoulos in US for talks with Hagel on possible Greek role in peace missions
6. Three held on Rhodes over human trafficking accusations
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Treating Amphipolis with care
3. Canada’s fiscal adjustment has lessons for Greece
4. Greece to offer law on restructuring bad loans next month
5. Greece’s recession eases as country nears end to six-year slump
6. Ministry sys ‘no’ to debt collection agencies
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.