Greece’s government committed to additional austerity measures equal to about 7 percent of gross domestic product over three years to secure a second financing package from the European Union and International Monetary Fund.
Fifty-eight percent of the businesses questioned said that through July 2012 the national priority should be to stabilize the economy and keep the country in the euro area.
The new measures will lead small and medium-sized businesses to a “dead-end and the Greek economy to a deeper downturn,” the National Confederation of Hellenic Commerce, known as ESEE, said in an e-mailed statement today. Higher taxes and a 22 percent cut in the minimum wage will hurt consumption and the “serious risk” of default remains.
Retail sales in November declined 6.3 percent from a year earlier, according to Hellenic Statistical Authority data released on Jan. 31.
Sales are expected to fall further in the first six months of this year, according to 79 percent of those polled. Eighty percent of respondents expect the liquidity situation to worsen in the six-month period, while 74 percent said they drew on their personal deposits to cover operating costs.
Nearly 60 percent of those polled plan to keep employee numbers unchanged in the next six months, while 32 percent said staff cuts are “likely.” More than 150,000 jobs were cut at small businesses in 2011, the study showed.
The poll was conducted for the confederation between Jan. 10 and Jan. 18. Small businesses are those that employ as many as 49 people.
Not just the businesses forecast:
“Small and medium-sized enterprises owe no less than 193.2 billion euros to banks, utilities, tax authorities and social security funds, according to calculations by the National Confederation of Greek Commerce (ESEE).”
Source: http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_21/02/2012_429237
Impossible for the SME to pay the taxes….