Hellenic Federation of Enterprises: The economy should rely on our own strength

The weekly Hellenic Federation of Enterprises (SEV) newsletter focuses on heavy taxation on businesses and aligns with the IMF view that less taxes is a prerequisite for growth.

SEV President Theodoros Fessas on Wednesday discussed the issue with European Commissioner on Economic Affairs Pierre Moscovici, who is also overseeing Greece’s bailout program. Fessas said that overtaxing businesses is not the solution to recession.

The SEV president shares the International Monetary Fund view that reducing taxes is a boost the Greek economy needs.

The newsletter further says that debt relief is obviously desirable, but it is not a substitute for bringing order to the Greek economy. “The economy should rely on our own strength. This is what the markets will assess in the final analysis, not debt easing,” the newsletter says.

According to SEV, bad macroeconomic policies are responsible for sending Greece to the 86th place on the World Economic Forum report on global competitiveness for 2016-2017 as opposed to the 81st place it was last year.

Focus on overtaxing consistent taxpayers and companies, strangles the economy, the SEV newsletter says. Households see their disposable income reduced continuously as their tax obligations increase.