Wednesday May 27, 2015 Search
Weather | Athens
14o C
09o 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)  
Economic sentiment weakens in Cyprus in May, says survey
ECB said to leave emergency aid level for Greek banks unchanged
A guide to Greeces debt crisis and whats at stake
The G-7s problem: Can the world deal with a Greek default?
Commissioner Avramopoulos calls for EU solidarity on immigration issue [Update]
The European Commission proposed easing the impact of the Mediterranean migration crisis on Italy and Greece by moving 40,000 refugees to countries further north. The proposal looked set to ...
Ahead of G7, US warns Europe not to miscalculate over Greece [Update]
The United States urged European negotiators not to miscalculate as they try to negotiate a debt deal with Greece's cash-strapped government, because the cost of a Greek exit from the euro z...
Inside News
SOCCER
AEK Athens returns to top league after financial collapse
Greek club AEK Athens has just returned to the country's top soccer league, two years after financial collapse sent it to a lower league. One of the country's largest clubs, AEK sealed its s...
SOCCER
Berg brace gives Panathinaikos four-point lead
Panathinaikos beat Atromitos on Sunday and took advantage of the goalless draw between PAOK and Asteras Tripolis to open a four-point gap from PAOK at the top of the Super League play-off mi...
Inside Sports
COMMENTARY
Romantic notions meet reality
Before the elections, there was a considerable number of people who totally disagreed with the ideas and program put forward by SYRIZA, but they expected that the leftist party would, at lea...
EDITORIAL
Solving the Gordian Knot
The leftist-led government, as well as the country, have both been seriously damaged and exposed to risk from the evident indecision and repeated contradictions dogging the ongoing negotiati...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Commissioner Avramopoulos calls for EU solidarity on immigration issue [Update]
2. Economic sentiment weakens in Cyprus in May, says survey
3. Ahead of G7, US warns Europe not to miscalculate over Greece [Update]
4. EU says fiscal targets, pensions, labor still to be agreed with Greece
5. Schaeuble says up to Greece to decide on capital controls
6. Vouliagmeni lifeguard taken into custody on child pornography charges
more news
Today
This Week
1. Some 300 mln left banks on Tuesday
2. Target of Greek scorn shapes nations fate as IMFs storm-chaser
3. Romantic notions meet reality
4. The G-7's problem: Can the world deal with a Greek default?
5. Solving the Gordian Knot
6. FYROM PM blames Greece for name impasse
Today
This Week
1. Conspiracy madness
2. National self-awareness put to the test
3. Albanian demarche raises concerns about possible territorial claims over Greece
4. Hotel contracts with a Greek default clause
5. Neither Grexit nor a dual currency will solve Greeces problems
6. Merkel said to plan address for Greece if deal reached
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.