The day after the voting of the budget and the new regulations marks the return to reality for businesses, which are struggling to improve their competitiveness.
Following its interventions on the issue of financial institutions, the government has clearly sent the message that their financial expansion cannot be based on fees.
The “haircut” of bank fees from 1-1-2025, the reduction of costs on cards and the imposition of a ceiling of 0.5 euros for transfers up to 5,000 euros, as well as the expansion of the daily transaction limit in the IRIS system to 1,000 euros are positive interventions. However, there should be further specialization of policies concerning banks in relation to POS charges, which have remained as they are, even at a time when the state is encouraging consumers to use plastic money.
There is also an urgent need to regulate the difference in interest rates between deposits and loans, as the current conditions are unbearable. Lending rates remain high, reaching around 6%, while deposit rates remain at 0.5%. A solution for a fairer banking policy must be found.
Following the new interventions towards banks, it is understood that financial institutions must focus on their main role, namely granting loans, instead of depending on fees for their profits.
Unfortunately, we are experiencing a contradiction: at a time when the country’s businesses, especially small and very small ones, are suffering from a lack of liquidity, as the majority of them remain excluded from bank lending, but also from programs financed by the EU funds of the Recovery Fund and the NSRF, systemic banks are offering selective support to large businesses, forgetting that their institutional role is to support business overall.
Therefore, the day after the measures taken for the banks, the adoption of political interventions to ensure the viability of small and very small enterprises and improve their competitiveness with the assistance of financial institutions is needed. The formulation of a policy that will primarily provide for the viability of small and medium-sized enterprises and improve their competitiveness is the next step that the economic staff should take in cooperation with the banks. Increases in wages, through the development and strengthening of the competitiveness of all sectors that make up the economy, require that certain conditions are met. The existence of healthy enterprises, which can contribute to the growth of the economy and the positive impact on society through the creation of new jobs.
The fact that 40% of tax revenues in Greece will continue to come from indirect taxes in 2025, while, according to the OECD, the average is 33%, means that we have a long way to go.
Let us hope that the implementation of the 2025 budget will ensure the continuation of the upward trajectory of the Greek economy, so as to signal the increase in public revenues from GDP growth, the limitation of tax evasion, the reform of VAT rates to lower levels and, most importantly, to bring the promised reduction in direct taxes to individuals and businesses earlier.
By Makarios Papadopoulos
Thessaloniki Chamber of Commerce and Industry
