The July 5 referendum a year ago and subsequent worsening of an already strained market climate for Greece has brought one business closure after another with a new wave of bankruptcies. Warning sirens were sounded for 15,409 businesses in the first six months of 2016 with more than 842,670 employment positions having disappeared.
Thousands of businesses and employees are in limbo, with consumption having frozen in all sectors, even in the food retail trade. Consumers are limiting themselves to the bare essentials.
Finance Minister Euclid Tsakalotos admitted that tax breaks will only come if the revenue collection goes well so as to cover state needs. Investment cancellations and delays are worsening the GDP forecast with “thorns” continuing as far as the restructuring of non-performing loans are concerned as well as the return of VAT to export companies.
The cost of the negotiation is estimated to be as much as 100 billion euros. Greece is also required to raise 100 billion euros by 2020 in order to ensure that there is sustainable growth that will pull the country out of the crisis.