The problems caused by the rise of inflation and the energy crisis in the Greek craft industry were put at the center of the meeting of the president of the Athens Chamber of Small and Medium Sized Industries (ACSMI) Pavlos Ravanis (BEA) with the Co-Chair of the Environmental Greens (member of the European Green Party) Mrs. Katerina Andrikopoulou Sakorafa.
The agenda was dominated by economic and tax policy issues, as well as a number of other topical issues, which have shaped an ominous landscape for the modern Greek craft/production business. The agenda could not miss issues related to green entrepreneurship, but also sustainable development “which for the ACSMI is high on the agenda, as long as the actions for them are conducted after a well-thought-out plan, with rules adapted to the data and the profile of the Greek small and medium-sized business”, as characteristically stated by Mr. Ravanis.
VAT reduction, liquidity support
The imposed reduction of VAT on basic necessities, fairer taxation for small and medium-sized and very small businesses, support for production and processing, the reduction of the Fuel Excise Tax combined with a reduction of VAT to 13% even with a three-month horizon, the reduction of non-salary costs for small and medium-sized enterprises (SMEs), the support of liquidity with financial tools for their medium-term lending, the proper utilization of the Recovery and Stability Fund, the support of start-up entrepreneurship in collaboration with the European Investment Bank, but also the strong connection of the tourism sector with the national craft production, are some of the points on which both sides agreed.
Soaring energy costs
Referring to the problems faced by SMEs, they also jointly recognized the particular importance of the effective management of energy costs, but also the complete abolition of the abusive adjustment clause, which “increased the electricity bill of, indicatively, a bakery from 1,100 to 3,300 euros” as characteristically stated by the Chamber’s First Vice-President, Mr. Damigos.
Mrs. Andrikopoulou Sakorafa, in her turn, stated that Greek handicraft businesses and small and medium-sized enterprises are the backbone of the Greek economy and their support is a top priority. “The ACSMI has submitted a number of proposals in this direction, many of which, in fact, not only coincide with our positions, but we have pointed out in our turn, many times,” she said
Education
Special mention was also made of the significant role of education, which should integrate knowledge that promotes both business and environmental literacy at all levels, creating the conditions for a sustainable and livable present and future. Furthermore, a special basis must be given to the correct information, briefing and guidance of SMEs, regarding the European programs they can participate in, as well as any other tool available that can contribute to their sustainability. In this matter, from the ACSMI. service’s point of view, it was emphasized that: “the criteria of the financial programs and tools adopted by the E.U. are very important and shoud be adapted and specialized based on the profile of the Greek business (small, medium, etc.)” .
Ms. Andrikopoulou Sakorafa also referred to the deficiencies that exist in such programs, such as for example that of the subsidy of fixed expenses, which ended on June 30, not giving the possibility to small and medium enterprises of the second category to repay their credit balance in tax expenses , given that they submit VAT quarterly and the start of submission of Q2 VAT is July 1st.
Special mention was also made of export activity, which is currently monopolized by large companies, as both the tax framework for SMEs, as well as the lack of incentives and training, but also the consequences of the ten-year economic crisis, the pandemic and now inflation, leave little room for growth in this area, leaving very capable “hands” and excellent ” brilliant minds” unexploited by Greek craft production.
Latest News
Cosco: Container Traffic Decline at Piraeus Port Continues
This strategic shift has diminished Piraeus's standing as a prominent Mediterranean port and a key transshipment hub post-Suez Canal.
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates
ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock
The 6.3% rise in May 2024 is largely driven by an 8.8% increase in the crop output group, particularly due to changes in olive oil prices, and a 0.5% increase in the animal output group.
Balkans Blackout Highlights Climate Threats to Power Grids
The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.
Greece in Top 4 Destinations Favored by European Tourists
Greece was selected by 5.9% of respondents who were asked where they would vacation this year, up from 5.4% in the same survey last year
Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive
The international ratings firm raised Greece to investment grade in early August 2023
First Seaplane Test Flights to Skopelos, Alonissos, Skyros
After decades of on-again, off-again efforts to schedule regular seaplane routes to Greece's numerous island and coastal destinations the prospect now appears within sight
ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y
The same price index had decreased 20.8% from May 2022 to May 2023
Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated
Specifically, the option "Subjective opinions are prioritized over objective data" ranked highest in importance for young employees, with a score of 3.89 out of 4
OECD: Job Vacancies on the Rise in Greece
By the fourth quarter of 2023, job vacancies per unemployed person had risen by more than 4, with the index reaching 446 units compared to 100 units in late 2019