SYRIZA: Mitsotakis’ plan consists of 20% pay cuts for workers and “herd immunity” for SMEs

SYRIZA: Mitsotakis’ plan consists of 20% pay cuts for workers and “herd immunity” for SMEs

The SYRIZA Main Opposition Party sharply criticized the government’s measures on labor, the economy and tourism.

The announcement states:

After two months of absence that cost the Greek economy dearly, Mr. Mitsotakis finally presented his infamous plan for the future. His plan is based on a 20% curtailment in wages in the private sector, rotating work shifts or layoffs for workers and “herd immunity” for businesses, in order to allow for the strong to survive and the small and medium-sized to be destroyed. A plan that does nothing but to recycle the failed recipes of the 2010-2014 period that led society to the brink of disaster and the economy to the brink of bankruptcy.

For businesses:

– There is a lack of direct support for small and medium-sized enterprises

– The amount of the refundable deposit is absolutely insufficient

– The guarantee programs as implemented by the Mitsotakis government exclude the vast majority of businesses

– The reduction of tax advance was announced without specifying how many and who will be affected. We remind you that SYRIZA included in its program a 50% reduction in tax advance payment for natural persons and sole proprietorships and 80% for legal entities. This reduction would be a law of the State from 1/1/2020 had Mr. Mitsotakis not chosen another policy mix.

– The reduction of VAT rates announced will make no sense at all if no turnover is recorded.

– There has been no specific measure to subsidize tourism demand.

Mr. Mitsotakis also did not fail to repeat once again the lies around his government’s allegedly good performance in terms of growth. Contrary to his claims, however, the official data show that he received the economy with a growth of 2.8% in July 2019 and “managed” to drop it to barely 1% at the end of the year, long before the outbreak of the pandemic.

But also in terms of labor relations, unfortunately the worst-case scenarios are confirmed. Mr. Mitsotakis’ announcements attempt to impose the complete dissolution of labor relations by generously offering a regime of impunity in the hands of employers:

– It perpetuates the suspension of employment contracts, ie it continues to subsidize unemployment.

– It encourages employees to accept either rotational work shifts or layoffs.

– It is essentially moving forward with 20% pay cuts in the private sector with full flexibility in terms of contracts and hours.

As for the tourism and food service industry, the few things the government announced are nothing but a drop in the ocean. While for the primary sector not a word was uttered.

In total, Mr. Mitsotakis spoke of about 24 billion in aid. Now that he has abandoned the logic of “money growing on trees”, it would be a good to look into Maths 101 principle that we do not add apples with oranges.

However, we have to agree with Mr. Mitsotakis that with the pandemic, stereotypes of the past have collapsed. But he forgot to specify that the first stereotype to collapse were the obsessions over market self-regulation and demonization of state intervention. Obsessions that seem to still dominate his government with catastrophic consequences for the Greek economy”, the announcement of SYRIZA concludes. /ibna