The Hellenic Federation of Enterprises (SEV) on Monday warned that Greek Prime Minister Alexis Tsipras’ recent announcement of a 617-million-euro “holiday bonus” for up to 1.6 million pensioners is a “high-risk action”.
SEV, the biggest employers’ group in the country, adds that the move comes “amid negotiations (with creditors) and is uncertain, in terms of its economic effectiveness…”
The warning is prominent in SEV’s monthly bulletin.
“…the country is implementing a strict framework of fiscal policy, which according to the Eurogroup decision of Dec. 5, 2016, will continue after 2018, thereby raising concern in the market for an even further increase in over-taxation and a weakening of the growth potential that is transforming,” the bulletin read.
The professional group also doesn’t mince its words in saying the allocated benefits are “funded by the temporary out-performance of revenues (collected) in the budget, due to the implementation of administrative tax collection measures through mass seizures and other forms of obligatory execution, and on a tax base that is grinding under over-taxation…”
