My dear … lockdown: At 5.1 billion euros the cost

With the country entering a new quarantine, new deeper wounds are opening up in the economy, while households and businesses are in financial suffocation. About 170 million euros a day or 5.1 billion euros a month is estimated to cost the country to lock the economy deepens the recession, opens a bigger hole in state coffers and makes the recovery bet for 2021 uncertain. To reduce the side effects of the new lockdown on workers and businesses, the government announced yesterday a new package of 10 meters worth 3.3 billion . euro. Includes an allowance of 800 euros for employees who will be suspended in November in proportion to the days they were suspended, VAT freeze for companies closing by state order, suspension of payment of tax and insurance debts, mandatory haircut 40% of rents , return of 50% of the “lost” rents to property owners, a one-time increase of 400 euros for the long-term unemployed, a two-month extension of unemployment benefits. From tomorrow morning, the market dies. Most companies in the country are shutting down for three weeks and hundreds of thousands of workers will be on suspension. With the temporary lockout that enters the companies, it is estimated that the turnover that will be lost from the market will exceed 5 billion euros this month. The “dip” in corporate turnover will have an impact on tax revenues. Less revenue for the business world, lower revenue for state coffers. With the second lockdown, the business turnover is estimated to fall by more than 40 billion euros this year. Thus, within a year, almost 20% of the total sales will be lost, something that did not happen even in the years of the crisis and the Memoranda. The blow that the Greek households receive is strong. In the second quarter of 2020 alone, in the heart of the lockdown, that is, their disposable income decreased by approximately 3.9 billion euros or by 11.8% compared to the corresponding quarter of 2019. Paper exercises The second and strongest wave pandemic and new general lockdown require revisions to draft budget forecasts and force Treasury officials to launch new exercises on paper budget. With the new data, the recession rate is very likely to write more than 10% this year, which will be a historic negative record. The Commission forecasts a 9% recession for Greece this year, without taking into account the footprint that the second general lockdown will leave on the economy. The country’s GDP will shrink and “dive” below the 170 billion euros provided for in the draft budget for 2021, returning to the levels of 2002-2003. The Ministry of Finance rewrites the 2021 budget, with forecasts for recovery to are limited to between 3.5% and 5% compared to the 7.5% provided for in the draft under a number of conditions (pandemic control, EU funding). Funds from Brussels are still expected despite the pan-European delays in the practical activation of the Recovery Fund. On the budgetary front, the primary deficit will be huge this year. Given that there is not the slightest thought in the eurozone to restore fiscal targets and rules next year, in the Ministry of Finance the focus is mainly on cash, which fed by constant outflows in the markets remain strong at the level of 37 billion euros. Follow it on Google News and be the first to know all the news See all the latest News from Greece and the World, at

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