Monday December 22, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Purification rituals

By Nikos Xydakis

The collection of higher-than-expected state revenues (which exceeded the target set for the seven-month period by 555 million euros) from income taxes and the terrible introduction of the new single property tax, better known by its acronym ENFIA, which prompted an outcry after erroneous data used to calculate it resulted in disproportionate levies for thousands of homeowners, both speak volumes about the recklessness of senior officials at the helm of Greeces Finance Ministry.

In addition, both examples regrettably point to an inexcusable degree of insensitivity and ignorance among ruling officials about the dismal state of Greek society and the economy.

The unprecedented taxes that the conservative-led government has imposed on taxpayers, businesspeople, professionals and salaried workers are being paid with money that they dont have to spare. Their contributions are made at the expense of liquidity, the vitality of businesses, already scant demand and the national economy in general.

As the deadly deflation deepens, as the economy remains locked in recession for a sixth consecutive year, and as unemployment hovers at a stubbornly high rate, it simply makes no sense to drain the economy in advance. The Greek economy is dying for liquidity and demand-side measures while people are desperate for jobs.

The premier and his senior ministers must put their spreadsheets aside and instead take a drive around the country as soon as possible. They would be advised to have a chat with some of the producers and manufacturers out there. They will most likely tell them that at the end of each month they struggle to pay their taxes and meet their financial obligations to the state. At the end of each month, they wonder whether they have any material and mental capital left to carry on with their businesses.

What the governments economy planners are doing in draining the real economy and households is a mistake of historic proportions. The policy must be reversed now, before every last business has been brought to its knees. The need is even greater given the international environment: The countries of the euro area are flirting with recession and deflation. Europe is paying a heavy price for its geopolitical role in Ukraine. Greece can no longer stand the purification rituals orchestrated by Brussels and Berlin.

ekathimerini.com , Saturday August 23, 2014 (13:42)  
Crisis of confidence will come back again and again, says Thomas Piketty
Who lost Greece
Snubbing the moderates
The big picture
Greek PM offers compromise solution with elections by end-2015
Prime Minister Antonis Samaras on Sunday presented a compromise solution to end a political stalemate that looks likely to send Greece to early general elections in about a month's time. Spe...
Environment Ministry to reconsider controversial bill
The government over the weekend appeared to backpedal on proposed amendments widely seen as compromising legislation protecting Greek forests as well as Plaka, Athenss old quarter. The bill...
Inside News
Political saga is harming liquidity
Greece is likely to hold snap elections in early February, extending the period of political uncertainty for another month-and-a-half, if not more. This will have economic consequences, perh...
Bad timing for tenders as oil rates decline
The first major opening of the domestic hydrocarbon market happens to have coincided with the unexpected and rapid decline in global oil prices. This has raised concerns in the Energy Minist...
Inside Business
SOCCER
Special day for Abidal, lucky one for PAOK
PAOK scraped through its Livadia challenge beating Levadiakos to remain on top of the Super League for Christmas, one point ahead of Olympiakos that enjoyed a great game at Kalloni and offer...
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
Inside Sports
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Special day for Abidal, lucky one for PAOK
2. Political saga is harming liquidity
3. Bad timing for tenders as oil rates decline
4. Tax exemptions deprive state budget of over 3.5 bln euros
5. Teiresias to track letters of guarantee
6. Agenda
more news
Today
This Week
1. Greek PM offers compromise solution with elections by end-2015
2. Who lost Greece
3. Crisis of confidence will come back again and again, says Thomas Piketty
4. Snubbing the moderates
5. Agenda
6. Bad timing for tenders as oil rates decline
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. A friendly yet firm message from Pierre Moscovici
3. Europe's drama in Greece needs final act to avoid tragedy
4. High stakes
5. On the edge but not gutless
6. Girl, aged 11, gives birth on Crete
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.