The Greek economy and the most important Task Force suggestions

The Greek economy is still quite unstable, according to “Task Force for the Greek economy” statement. It is noted that “Task Force” consists of representatives of Hellenic Confederation of Freelancers, Craftsmen and Merchants, National Confederation of Hellenic Commerce, Association of Greek Tourism Enterprises and Union of Hellenic Chambers. Main target of “Task Force” is to observe the economic environment and to make suggestions for legislative initiatives to the government.
More analytically, according to Task Force’s report, four Greek economic indices are lower than EU average:

• In Greece, the total burden on asset transfer amounts to 11.8% of asset value, while the European average is about 4.6%.
• The cost of a new startup is estimated at 910 €, while the EU average is at 343 €.
• The payments by government are executed within 112 days which is 4 times higher than the European average.
• Greece is below the EU average in the absorption of EU funds.
However, Greece is approaching the levels of the EU average in the availability of credit data and in the interest rate gap between high and small value loans.

The Task Force suggested 12 possible reforms which could contribute to the “reboot” of Greek production and economy:

• Reforms in legal and institutional framework governing new startups.
• Further simplification of several administrative procedures via digitization processes.
• Reductions in medium sized and small companies’ tax burden (VAT, duties, local and energy taxes).
• Adoption of an electronic payments system between public sector and private organizations.
• Closer monitoring and supervision of the markets in order to:
-Prevent the formation of oligopolies.
-Reduce the non competitive effects of illegal trade.
• Financing of small sized companies using EU funds.
• Effective operation of the Investment Fund for Growth (IFG).
• Better planning of public financial instruments of period 2014-2020, in order to cover the needs of SMEs.
• Support of export oriented companies via co-financing programs.
• Promotion of clusters and business parks formation.
• Improvements in legal and institutional framework concerning the certification of professional qualifications.
• Free choice of lowest insurance category for freelancers and entrepreneurs.

The legislative action, which could face these issues, is expected to contribute to the more efficient operation of existing companies in Greece and improve the investment climate in general.