By G. Kanoupakis
The largest employer’s group in Greece, the Hellenic Federation of Enterprises(SEV), on Thursday referred to “unforeseen repercussions” from what it called the “huge redistribution” of income on either extreme of the scale”, in sharply criticizing the 2016 draft budget submitted by the government earlier this week.
In its weekly economic bulletin, SEV charged that the draft budget for next year includes “the greatest redistribution of income ever attempted in only one year".
The federation said that beyond the primary budget surplus goal for 2017, which stands at 1.8 percent of GDP, the proposed budget also deducts purchasing power from consumers by 2.5 billion euros, with the total being 3.1 billion euros over the two-year of 2016 and 2017, especially through a reduction in pensions and social spending.
SEV, nevertheless, adds that next year’s budget foresees social spending increases by 871 million euros, entailed mainly in a new “solidarity fund” and increases in spending for education and health care.
