Developmental measures to offset unemployment benefits with job subsidies

The two-month period September - October 2010 was very productive, both in terms of meetings between the FING’s Administration and the political leadership, and in terms of government initiatives, which were a result of the parliamentary reshuffle in early September.
More specifically, during the FING ‘s Administration meeting with the Minister for Regional Development and Competitiveness, Mr M. Chrisochoidis, we requested that specific developmental measures must finally be taken, as they will reverse the downward trend Greek manufacturing has been experiencing the last few years and they will re-establish manufacturing as high priority of government policy. Moreover, these measure will remove certain barriers that threaten the smooth functioning of businesses and their competitiveness. At present these problems, that we all are aware of, once removed or restricted, will enable us to see a remarkable difference in the way our businesses operate. As the administration of the Federation, we focus on these problems everyday in an effort to resolve them.
The draft budget that was announced in early October provides no potential for growth in the country, particularly at the regional level. I would like to categorically state FING’s full opposition to any new taxes that may be imposed on enterprises and citizens. Imposing any new direct and indirect tax will further diminish the purchase power of Greek citizens and will, in turn, cause domestic consumption to decline further. Of course, fiscal adjustment is the correct policy for the government to follow; but the necessary fiscal revenues should be sought in the country’s growth, in restrictions to state spending, and in countering tax evasion and the black economy, rather than in taxation that leads to further depression of the economy. In addition, provision should also be made for low-income workers, who will be the hardest hit by indirect taxation.
Furthermore, because we believe that preserving jobs during the difficult period we are experiencing is a matter of vital importance, in the meeting we held with the new Minister for Labour and Social Security, Mrs L. Katseli, we requested that unemployment benefits be offset with job subsidies in order to ensure the income and working conditions for all employees of businesses in Northern Greece.
Indeed, if such a measure is combined with an effective attempt of countering social contributions’ evasion and undeclared work (which constitute the greatest problems for the country’s social security system) by streamlining operations and reducing the operating costs of the social security organisations, and by simplifying and reducing the bureaucratic procedures companies are subjected to when managing their social security obligations, then we are sure that we will preserve existing jobs and provide prospects for growth for our companies and the country.
In any case, I would like to stress that the members of our Federation have never contested, nor do they now contest the industrial relations framework, but rather they understand that the route involving communication with their employees is the one that will get us out of the dead-end we have reached as a result of the economic crisis.
Last, but not least, I have left the predominant problem of the business world: reduced liquidity. VAT refunds and the pending pay-offs relating to completed and audited investments that have been included in the development law must be effected immediately, since it is through these actions that businesses will solve the key issues of liquidity. It is not possible for the problem to continue.
Nevertheless, the Federation has succeeded in maintaining constant contact with the Deputy Minister of Regional Development, Mr Socrates Xinidis, who is in charge of the matter, with a view to speeding up the procedures for payment for investments and VAT refunds for our members.
Finally, we must all realise that the only way to preserve existing jobs and expand the productive basis of the Greek regions is through a stable, secure and, above all, developmental environment.

Previous President's Messages

A New Year showcasing GREEK VALUE

A new year, with changes in the state and society

Change of Prime Minister accompanied by new expectations about a way out of the financial crisis

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



FEDERATION OF INDUSTRIES OF NORTHERN GREECE
1 MORIHOVOU SQ. GR 54625 THESSALONIKI GREECE - TEL. +30 2310539817 FAX. +30 2310541933