By Athanasios Savvakis*
The results of the Greek Parliamentary elections on July 7, 2019 have clearly been creating positive prospects in terms of the country’s growth.
*Athanasios Savvakis is the president of the Federation of Industries of Greece (SVE).
Since we have also seen the first actions from the new government, then we are confident as to the success of its mission. The Federation of Industries of Greece (SVE) is expecting the government to undertake initiatives fast, which will contribute towards disengaging the country from outdated structures and mentalities that are eventually hindering its growth prospects. As an equal social partner that is representing small- and medium-sized manufacturing businesses registered in regional Greece, the Federation of Industries of Greece is expecting decisions from the new government as soon as possible for actively supporting manufacturing and establishing a friendly and flexible environment within which to operate. Besides, SVE has always supported that a strong political commitment for the future of Greek manufacturing activities must be made immediately. However, we are asking for realistic vision and meaningful goals. Without vision and goals there is no future for the industry.
On the part of the Federation of Industries of Greece, this plan must be based on four axes:
- productive investments,
- creation of new jobs,
- innovation,
- internationalisation and extroversion.
Europe is proceeding towards its reindustrialisation with strategic planning. Once more, Europe is showing us the way. While our competitor countries are implementing their own industry support programmes at a fast pace, we are still contemplating whether manufacturing should become a priority in terms of restoring the economy. According to the Federation of Industries of Greece, our country can no longer stubbornly resist adjusting to the European decision to bring manufacturing to the forefront. At a time when we should earnestly look to the future, because otherwise the developments will surpass us, it is imperative to implement a consensual industrial policy that would force manufacturing to make the necessary adjustments so as to boost its competitiveness.
It is necessary to adjust promptly to everything that is happening around us. Digitalisation, artificial intelligence, robotics, internet of things, big data, climate change, cycling economy, participation in global value chains and constant production of innovation are some of the key growth and transformation paths of manufacturing activities, which must be integrated into the national industrial policy as soon as possible.
When for years now, several European Union countries have been addressing the challenges of the 4th Industrial Revolution, our country, in its efforts to break free from the memoranda, has been unable to keep up with the developments, trapped within the mentalities of past decades.
In addition, the growth of manufacturing and the adjustment of the sector to the changes of the 4th Industrial Revolution will not happen for as long as the excessive taxation of businesses will continue to threaten the day-to-day operation of enterprises and existing jobs.
We need to look the future in the eye with realism and hard work. Besides, the continuous regression of the past decades must stop, and our country must consensually commence its major efforts towards the recovery of production. Let’s not forget that in the past years, small- and medium-sized manufacturing businesses registered in regional Greece were all but forgotten by all the previous governments. I believe that these days, public administration and the business community can provide solutions jointly.
In order to boost the competitiveness of the Greek manufacturing businesses in practice, and especially those operating in regional Greece, the Federation of Industries of Greece is proposing that decisions are made immediately, so as to resolve the age-old problems faced by domestic manufacturers as soon as possible, including:
- Curbing non-wage labour costs and improving taxation for individuals and businesses.
- Reshaping radically the investment legislation and implementing it through non-profit investment bodies, focusing on supporting less developed areas.
- Setting depreciation for high-tech investments at 2 years and further increasing the depreciation rate to 200%, aiming to boost productive investments.
- Reducing the special consumption tax for medium and high voltage for industrial use to 50% of the current value in the next 2 years.
- Abolishing fees, stamp duty and charges in the next 5 years.
- Amending the calculation method of the Unified Property Tax (ENFIA) for industrial property and abolishing the supplementary tax.
- Amending the provisions for declaring compulsory overtime and overtime employment. Improving the use of the ERGANI IT system.
- Extending the period for transferring business losses from 5 to 15 years and simplifying the process for writing off doubtful debts.
- Recording net prices on invoices to consolidate the relations between manufacturers and retail chains.
- Setting legally the highest limit for paying off invoices, which should not exceed 60 days.
