ECONOMY

Mixed reaction at employer unions

Employer representatives received the government’s proposals to its creditors with a mix of relief and concern, as while discerning an end to the uncertainty they also see the planned measures have a strong recessionary character and are calling on the government to opt for measures cutting state expenditure instead of excessive taxation plans.

“The upcoming agreement is a particularly positive development. However, we are expecting the government to make different choices that will banish the recessionary threat from the national economy,” said the head of the industrialists’ federation (SEV), Theodoros Fessas.

“This is a very bad deal which imposes a dramatic burden on the private sector,” stated Antonis Zairis, vice president of the association of retail enterprises (SELPE). He warned that in three or four years’ time the economic situation will be 10 times worse than today.

“The eagerly anticipated agreement appears to be based on a modified recessionary program that will extend the period of the economy’s contraction and weaken the country’s production capacity,” argued the association of small manufacturers (GSEVEE).

The union of tourism entrepreneurs (SETE) said it accepts the value-added tax rise from 6.5 to 13 percent on hotel accommodation, as long as VAT on food service stays at 13 percent.