Economy in 'vicious circle', Athens-Piraeus Industrialists president warns

The Greek economy has entered a vicious circle that will be very hard to exit, president of the Association of Industrialists of Athens and Piraeus Dimitris Mathios warned, in a circular message to the association's members.

 

This, he added, was due to the fact that the measures taken by the government are apparently failing to halt the recession into which the country has already fallen and, on the contrary, could very well entrench the Greek economy into a dangerous form of stagflation.

 

Mathios further said that the advent of 2011 finds Greek industry and the Greek economy in general in an even more difficult position than 2010, compounded by adverse international developments such as the rising prices of crude oil and raw materials that further encumber achievement of the budget targets.

 

He also warned that the government's persistence on indirect and special taxes will maintain tax inflation at a high level, while the "most oppressive measure" was the "continuation of the punishment of profit with an extraordinary contribution for the 2009 tax year by profitable enterprises, which should be exempted from taxation on both fixed assets and their total installations". 





ANA-MPA