Someone has to explain this to me how is it possible to invest with almost no capital and get awarded. Economy Minister Giorgos Stathakis presented today Greece’s new development law 2016-2020. He said nice things about how debt-ridden and liquidity-short economy would grow. A key pillar of the new development plan was “equitable development” for all.
Stathakis described the key pillar as “the fair and impartial sharing of the positive aspects of the development to social groups” and described the law as “very different from laws of the past,” as it gives “great importance to investment and economic recovery.”
Loyal to left-wing and socialist ideology, the minister said also that the new law is based on the strategic use of human resources, incl high value added activities and not “low rates and low wages.”
The new developmental law “seeks to create innovative, outward-looking, dynamic-viable enterprises; employment growth, with emphasis on skilled human resources, aiming to curb the brain-drain of young scientists. Further, it seeks growth in domestic value added partnerships (Clusters / cooperatives / social economy), medium size enterprises, the re-industrialization of the country.”
The new law promises “investment without available capital and infussifient state resources” and tax incentives.
The most striking example to attract investors is:
For 12 years fixed tax rate for investment of over €20 million provided the creation of at least 2 work places.
Also: funding of up to 70% of investment and subsidy of the employment cost.
And here are my questions:
- how can a 20-million-euro investment create only 2 work places?
- what is the cost of 1 work place that the Greek state will be willing to subsidy in order to decrease this damned unemployment that has been 24%-25% for the last 5 years?
- what is the cost of 2 work places that need an investment of 20 million?
- Where will the Greece state find the money to be so generous with investors who would need only 1.4 million euro to make their dream of 20million investment come true?
- If the Greek state funds this investment, does it hope to get something in return from direct and indirect taxes?
Or have I got it wrong?
Whoever comes up with convincing answers will be awarded with … ehm… errhm… a frappe or a freddo cappuccino in Athens?
PS more details of the new development law 2016-2020 here
I’m afraid, but I saw messages like that in italy, talking about ‘start-up’, new hitech job work, and so on.
It’s an EU story, actuality it’s very different.
of it’s the EU ambitions than have little to do with reality
Little to do with the people’s reality, but EU (as is) isn’t for peoples ….
of course. Brussels is above this world