Survey: Six Out of Ten Greek Households Unable to Pay Utility Bills

Posted by in Society

…and soon they will not be able to pay even for their daily food. According to a survey conducted by the Institute of Small Enterprises (IME/GSEVEE), six out of ten Greek households have difficulties in paying monthly utility bills (electricity, water), taxes and repay bank loans. The survey was conducted among 601 households residing in the prefecture of Attica, that is Athens and broader area, in the third and fourth week of December 2011. Aim of the survey was to find out the impact of the economic crisis in the income and expenditures of households.

Among the survey findings are:

13.5% of the Greek households are unable to cover basic needs (food, utilities like electricity, water, bank loans).

64.2% of the households cut in expenditures in order to be able cover basic needs.

90% of the households reject Value Added Tax hikes in basic goods (from 13% to possible 18-19%) even if it would mean that the current 23% VAT would be lowered.

74.9% of the household expect further income cuts in 2012.

76% of households with an income of €1,000 per month have cut expenditures for food items, while 91.1% have stopped buying  shoes and clothing.

More than half of the households (51.9%) that are unable to cover basic needs sought the aid of friends and relatives and just 3.7% sought a bank loan. (see the full survey here)

However a weird thing has happened since the crisis started: While salaries and pensions were cut at a level of approximately of 40%, the prices for basic food items have increased. Bread went up 4%, meat 2%, milk and diary products 4%, fish 6.5%. Mppne should wonder why Greeks will soon stop …eating!