Tsipras: Gov’t funding choices ‘will prove disastrous’ for SMEs, real economy

The most critical part “the day after” the coronavirus pandemic “is the issue of the debt and the issue on non-returnable support to subsidies, allowing businesses to stand on their feet again,” SYRIZA leader Alexis Tsipras said on Wednesday.

During a tour of Achaia prefecture and an address to production officials in Patras, Tsipras accused the government of “wrong assessments and lack of coordination and abilities” in trying to limit recession and restructure in the market.

He also maintained that the government’s policy was based on the idea of shrinking the number of small and medium-sized enterprises (SMEs). “We now see this idea arriving as a natural phenomenon and as a natural catastrophe caused by the pandemic,” said, but added his viewpoint that “the restructuring of the market, with its shrinking and the thousands of permanent shutdowns in SMEs, is a political choice.”

The support measures to businesses and families “have so far not managed to provide what is necessary,” he asserted, in terms of maintaining at an acceptable level both demand and offer in the market.

“Unfortunately, the government chose another road in the name of financial resources,” the main opposition leader said. “Our assessment is that the result of this choice will be disastrous for both small and medium-sized entrepreneurship and the real economy, and for fiscal balance, and particularly for the path of the Greek public debt, which has already reached an excessively high level, at 200 percent” of GDP, he noted.

During his visit to the Patras region in the western Peloponnese, Tsipras also spoke with business owners and employees in Rio whose sectors are affected by the pandemic.