Proposals for avoiding the financial crisis

It is a well-known fact now that the global financial crisis is marking the end of an era in the global economy that was dominated by money and capital markets; an era that was defined and eventually stigmatised by the slack and sometimes non-existent supervision of international money markets, the absence of or – at times – minimal State intervention, the rather unreal salaries of executives, the detachment of market values from the increase in productivity, excessive investment risk-taking and, above all, the lack of transparency.
The Federation of Industries of Northern Greece (FING) is constantly emphasising and proving the existence of a developmental gap between the centre and the regions. This is what is currently accentuating the problem of the financial crisis in the regions and especially in Northern Greece.

FING suggests that the following measures be taken to boost the enterprises in Northern Greece and to avoid the financial crisis:

1. ‘Things’ need to be reset: we must establish new rules for the functioning of our markets, but mainly we must forget the slack or even non-existent supervision of money and capital markets, which have, until recently, dominated the situation. Within this framework, a solution must be found to the fundamental structural problems faced by the Greek economy.

2. A programme of measures and policies must be created, which will cover a period of at least five years and be the result of an agreement between the social partners, employees and the State in order to free the country from the financial crisis.

3. Common ground for co-operation must be found between enterprises and the financial system: the liquidity of enterprises must be given a generous boost in order for them to come out of this financial crisis having suffered the least possible damage.
Additionally, domestic demand must be boosted immediately through the smooth running of the domestic financial system, which mainly relies on the unimpeded provision of home loans.

4. Furthermore, employment must be enhanced through the reduction of employers’ contributions, since this can result in increasing job creation and not unemployment.

5. Also, the State must be consistent in its payments to enterprises. The payment of all or part of the State’s debts to enterprises would certainly offer a breath of relief to domestic entrepreneurship.

6. Lastly, a significant factor that would relieve us from the financial crisis is the immediate announcement of programmes for boosting entrepreneurship through the National Strategic Reference Framework (NSRF). Indeed, we suggest that special provision be made for boosting entrepreneurship models that adopt innovation and new technologies, have outward-looking attitudes, respect the environment and develop social responsibility actions.

7. Education must be improved. Our country’s education system must be enhanced, and education and training must be linked to our production system in order to create employees who are ready to take up posts in Greek enterprises in Greece and abroad.
In any event, the State will have to schedule public investments that will create new jobs, enhance the income of employees in general, and eventually increase product consumption, which is a crucial factor for the private sector.

It is time that we who participate in the financial life of our country take responsibility, which is why it is important that we remain calm. Our ability to remain calm will imply that we are mature and serious, and above all it will reveal our willingness to fight in order to overcome the crisis.