By George Karanikas*

With the government still on its “honeymoon” after its election victory, and with its first moves, on both sides of the borders, giving the market the sense that the “train” of the economy is finally changing tracks in order to move more decisively in the direction of growth, many are naturally forming high expectations in view of the Prime Minister’s announcements in this year’s Thessaloniki International Fair.

As stakeholders of the market, we are clearly aware that the present and the future of the real economy remain, to a great extent, ‘captive’ to the targets for high primary surpluses.

*George Karanikas is the president of the Hellenic Confederation of Commerce and Entrepreneurship (ESEE).

Over the past weeks, the Hellenic Confederation of Commerce and Entrepreneurship (ESEE) presented a series of proposals based on documented arguments, that will allow the “return to normality” to be translated into action. Thankfully, several of these proposals have already been included in the government’s first legislative initiatives: the improvements in the 120 instalments and the Unified Property Tax (ENFIA), the reduction of VAT in the catering sector, as well as the elimination of the grounds for dismissals and the employer’s joint liability towards workers with the contractor in defined term contracts constitute positive measures. However measures that are also symbols of tax unfairness and the arrogance of the “Troika” continue to rule over the daily operations of businesses and freelancers. The business tax and pre-payment of 100% of the tax are two characteristic remnants of the era of the MoUs, which must be eliminated. This will not only substantially improve liquidity for SMEs, but is also symbolically significant, since 50% of the economy is psychology, as Ms Merkel told the Prime Minister.

However, apart from the separate regulations that heal wounds of the past, the Greek trade, the sector in which the middle class has always excelled, is eager to hear Kyriakos Mitsotakis lay out the government’s priorities that outline the growth plan for the economy. Trade is part of the DNA of the Greek people, being the most flexible economic activity, enduring through troubled times and being adjustable to change. This is a sector that serves as the ‘lifeline monitor of the middle class and the market, adding value to society in general. And this is the reason why trade deserves to be in the “first class” on the train of growth.

However, what a small and medium-sized enterprise is mainly lacking today is the certainty it needs to take its next steps towards extroversion and innovation, which are the new tools that will pave the way for growth in an environment of fair competition with the large domestic and multinational companies.

Major issues are: firstly, the formulation of a stable, investment-friendly taxation system and secondly the reinforcement of liquidity in the market by improving access to funding. In such a framework, innovative actions, such as the “open malls”, have a higher chance of succeeding and the interventions we have proposed to the responsible ministers for the reinforcement of exports, acceleration of the digital transformation of SMEs and the elimination of illicit trade are more likely to work effectively.