The coronavirus changes our lives and … empties our pockets



The outbreak of cases across Europe brings a nightmare deja vu with the Greek government announcing new restrictive measures on Friday causing chills for the impact on income, employment and the economy in general as Greek households, due to quarantine, have already lost 4 billion euros. Therefore the new strict restrictive measures – lockdown type – to cause damage to the already distressed market that may approach the levels of the first wave. The draft of the Ministry of Finance predicts that the average equivalent disposable family income before the coronavirus in 2020 was estimated at 10,240 euros and after the pandemic – without specifying whether the adverse scenario is included – will be 291.31 euros less or reduced by 2.84% Indicative of the consequences of the lockdown are data on business turnover, which decreased by 19.8 billion euros in the second quarter (in August decreased by 4.3 billion euros compared to last year), while the dip in 2020 tourism revenues are estimated to be high as the year closes with 1/5 of last year’s tourism revenues amounting to about 18 billion euros. In short, the year will end with a reduction of revenues from tourism by 80% (about 3.5 billion euros) compared to those of 2019. De facto abolition of the eight-hour front On the job data show that a very fluid period begins for employees. Eurostat data show that Greece and the Czech Republic had the lowest redundancy rates in the second quarter (less than 2% of Greek and Czech workers lost their jobs), but Greek workers, whose working hours were reduced or In the second quarter of the year, they exceeded 25%, which is one of the highest among the EU Member States, together with Italy, Cyprus and Ireland. The INE-GSEE report ((October 2020) presents a worrying picture as it reveals the reversal of fundamental labor rights, while the authors of the study estimate that “the de facto abolition of the eight-hour period and the liquidation of the start and end time of work has been imposed.” Also, 31% of employees in the second quarter Prior to the outbreak of the pandemic crisis, 73% of workers in all sectors worked overtime, while in some sectors, such as post-employment and transport, the corresponding figure was over 80%. The pandemic and the crisis it caused have changed this picture, with the proportion of people working overtime falling to 55%, while 19% working more than 48 hours a week. Between March and June the exit from the workforce ranged between 100 thousand and 180 thousand people in relation to the respective months of 2019. The largest volume of these people concerns employees who are suspended for more than three months and receive income less than 50% of their salary. Cost to the economy 500 – 600 million euros from a 15-day lockdown in Attica alone The monthly cost of imposing a universal lockdown, according to the calculations of the Ministry of Finance, is about 2.5% -3% of GDP, while cash ammunition amounts to approximately € 37.5 billion to finance measures to support the economy. With the outbreak of the pandemic, in the first half of 2020, the government received a series of interventions and according to the budget these interventions are worth a total of 24.156 billion euros, of which 21.468 billion euros relate to 2020 and 2.688 billion euros are expected to affect the fiscal result of 2021. If it is deemed necessary for the Attica Region to “close”, the effects of the measure will be significant on the economy. The contribution of the Attica Region to the economy reaches 86 billion euros – and especially the center of Athens exceeds 30 billion euros, which means that more than 47% of GDP is produced in the Basin. It is estimated that a possible 15-day lockdown in Attica will cost the economy 500-600 million euros, at a time when the catering and retail sectors are already “kneeling”. According to the Piraeus Chamber of Commerce and Industry, a very carefully planned fortnightly lockdown in Attica, which will involve anthropogenic activities such as trade, services and catering, will cost a reduction of at least 0.5% of annual GDP, ie turnover losses of about 1 billion . euro. He warns that these fifteen days will mean higher unemployment, endangering an additional 110,000 jobs and most likely new padlocks. At the same time, the average income will lose another 800 million euros and the red loans will increase by 8 billion euros, while the debts by 1.5 billion euros. How much has our salary been reduced? According to ELSTAT data, Greek households, only in the second In the second quarter of 2020, they lost 3.9 billion euros or 11.8% of their disposable income compared to the corresponding quarter of 2019. The disposable income of households in the second quarter of 2020 amounted to 28.96 billion euros, from 32 , 83 billion euros in the second quarter of 2019. The reduction in consumer spending of households and non-profit institutions serving households was almost proportional as it amounted to 28.4 billion euros in the second quarter of 2020 compared to 32.5 billion euros in In the second quarter of 2019, it decreased by 12.7%. For its part, the report of the Labor Institute of GSEE (October 2020) estimates that in the second quarter of 2020 the average monthly salary decreased by about 10% compared to the same quarter of 2019. During the same period the percentage of employees receiving up to 200 euros increased from 1% to about 12%. The percentage of people receiving from 400 to 600 euros decreased from 16.3% to 12.3%, while in the second quarter of 2020 72.9% of employees had salaries of less than 1,000 euros. Finally, the draft of the ministry Finance provides the following: 1. The average equivalent disposable family income before the coronavirus in 2020 was estimated at 10,240 euros. After the pandemic, this income is estimated to be 291.31 euros less or reduced by 2.84% .2. In the lower incomes (average income 2,945 euros) there is an increase of 1.94% due to the support measures and higher (average income 25,282 euros) a decrease of 5.5% .3. For 2021 it is estimated that, after the support measures, the average income will be higher by 54 euros or 0.53% compared to the pre-coronavirus income.4. The poverty rate was at 18.05% before the coronavirus and will increase in 2020 by 0.42%. In 2021, after taking all the measures, poverty will be reduced by 0.11%, compared to the pre-coronary level of 2020. The poverty line is the income of 5,260.84 euros. Follow it on Google News and find out all first the News See all the latest News from Greece and the World, at



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