Direct Analysis: Government's pre-election measures undermine the political economy

With a fifth taxation in OECD countries, Greek companies are taxed and automatically become less competitive, for example, in the wider neighborhood, tax rates range from 10 to 12%.

Despite this, not only does the government not seem to be moving, but a positive measure pbaded in 2017 providing for a single reduction in the tax rate from 29% to 26% is removed. Even when most organizations are worried about the growth of the Greek economy, the government is changing the structure of the measures by advocating more pre-election measures.

The old provision was removed and a new one was filed in favor of a one percentage point reduction in the corporate tax rate (from 29% to 28%).

Greece has one of the highest tax rates in Europe and certainly the highest in the Balkans and Eastern Europe, reaching 39.65% ( profit and dividend rate), a development that is detrimental to business growth. From 26% in 2014, it reached 29%, while the dividend tax went from 10% to 15%. At the same time, it maintains the highest tax advance with Italy (100 for Greece, 90% for Italy). In Bulgaria, the corporate tax rate and dividends are 10%, while in Cyprus they are 12.5% ​​and 0% for non-Cypriot shareholders residing in Cyprus.

The Greek government dismantles businesses because of taxes and high insurance contributions, as well as the volatility of the tax system, which is constantly changing.

The cost of business in Greece is frightening if tax and insurance contributions are taken into account. It is telling that 82.4% of the measures in the third memorandum related to taxes and social security contributions and 17.6% to spending restrictions. And precisely, this mixture of the third and the complementary memorandum led to overproduction.

All the studies of the leading audit firms and agencies always come to the same conclusion: "If rates are not reduced, the Greek economy will not grow."

Despite the fact that the growth of the economy is anemic and will continue to be in the years to come, the government does not seem for the moment to want a radical approach to the problems related to the competitiveness of the economy. the Greek economy.

It is therefore not surprising that more and more entrepreneurs are planning to move their headquarters to other European countries, as they hope to have better and faster access to bank financing, while they are virtually non-existent in Europe. Greece and obviously have higher interest rates, and they will be significantly reduced. loads.