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Bold decision-making for avoiding the financial crisis
Since our Federation’s bulletin for the months of November and December
is released in January, this article traditionally refers to our
expectations for the New Year. And this year will be no exception, as I
do not intend to change this tradition in this, the final year of my
tenure.
2009 has been named the year of recession: the European Commission
predicts that the Eurozone economy will shrink, while there will be a
rise in deficits and a drop in inflation. For our country, forecasts on
economic growth are marginally positive, in contrast to the outlook for
the rest of the Eurozone.
At the same time I wish to remind you of something I pointed out in my
previous article. “Unfortunately here in Greece we have no lines of
defence against these crises; we are totally dependent on oil, and have
no resistance to inflation, rising prices and unemployment. And as
usual, we have failed to set anything aside for a rainy day”.
Taking the current situation into account, I believe that we will have
to make do with our 2008 incomes in 2009. Under no circumstances can
this be considered as tragic. What would be tragic is for our economy to
enter a phase of contraction instead of growth. This is where the great
risk lies, as this would have severe consequences on employment.
Unfortunately, in such a case – which I hope will be avoided – the
consequences would be particularly grave for the regional economy, and
especially on the regional industrial sector. By way of example, I will
highlight one point in order for us to grasp the difficult predicament
in which the Greek industrial sector finds itself, though the worst is
yet to come. According to data of the National Statistical Service of
Greece (NSSG), the global financial crisis has brought about a 15.4%
decrease in industrial sales in November 2008, compared to sales in the
same month of 2007. Based on the qualitative data that I have gathered
from my fellow Northern Greek industrialists, I believe that the
corresponding drop is far greater in Northern Greece than in the rest of
the country.
This data, whether real or a mere forecast, is unfavourable to us. The
risk of facing problems as a society due to the potential outbreak of
unemployment is lurking, and therefore, even now, it is necessary to
take measures to support the real economy so that in the event that our
economy does not grow over the next few years, we will at least be in a
position to hold on to what we have achieved in the past.
These measures may not be pleasant for many of us, but it is perhaps an
opportunity for the Greek State to get its affairs in order, by reducing
unnecessary expenditures to a minimum, thus becoming more productive,
and finally by drastically reducing the cost of bureaucracy, which is a
burden on citizens' everyday lives, and especially on the operational
aspect of businesses.
We are aware of the decisions that need to be made. Indeed, we are aware
of the right decisions. However, the question is: what is the so-called
political cost of taking the right measures and decisions in order to
deal with the financial crisis.
The concept of political cost can lead us to procrastination and finally
to failure. And failure in this case will be twice the size because,
although we are aware of the right decisions that need to be made, we
either do not make these decisions or, even worse, we make the wrong
decisions. The result is that there is no serious reaction on the part
of society or such a reaction is muted.
In any event, I believe that the current crisis may be seen as an
opportunity to re-examine our financial policy during this New Year, to
improve our social policy and increase our investments mainly in human
capital, (in other words, in education and research), in order for the
Greek economy to become more productive.
All that is needed is for us to decide, at last, to make this happen.
This is my main expectation for the New Year.
Previous President's Messages
Zero profits for processing industries in Northern Greece in 2010, with one in three businesses reporting losses
Only daring decisions will take the country out of this impasse
The Federation’s Proposals for development
The need to take measures to immediately bolster the economy and improve business competitiveness
A new year – new expectations for growth and development
Developmental measures to offset unemployment benefits with job subsidies
Enhancing "Greek Value" by resolving problems that drag on
Greece’s rise in the IMD World Competitiveness Yearbook ranking is encouraging news amidst the crisis
The Federation of Industries of Northern Greece making a decisive contribution to manufacturing strategy up to 2020
The government's immediate priorities in 2010 to develop the infrastructure in Thessaloniki and boost the competitiveness of manufacturing enterprises
Expectations from the new government: the manufacturing sector should be the new government’s focus
Industry should be among the Government’s policy priorities
Industry centre stage again
Proposals for avoiding the financial crisis
Bold decision-making for avoiding the financial crisis
Prospects for growth in Northern Greece in an environment of international crisis
Investment Law and Northern Greece
The market of izmir: the next goal for outward-looking enterprises of
northern greece
The
new government’s aspirations for thessaloniki and northern greece:
fing’s proposals for development
Thessaloniki and Northern Greece in International Markets
Regional
development policy as an engine for local industrial development
Global
orientation, productivity and realistic management of the National
Strategic Development Plan (NSDP). The challenges for 2007
Investment Law and Northern Greece
The new
legislative framework for research and technology in Greece: a
government nod of approval for the proposals made by the Federation of
Industries of Northern Greece (FING)
Thessaloniki has the potential to become the second pole of development
for Greece and the headquarters for development organizations nationwide
Changing
attitudes to combat unemployment – Proposals for creating closer links
between education and production
Support
for the Regions: From now on, policy actions and not just policy
announcements
The
business community – a force for social cohesion in Northern Greece
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