OECD: Greek State Killing Entrepreneurship

Euro in Greek flagAlthough Greece is trying to return to growth, there are still some inhibiting factors that prevent productivity. Bureaucracy, high taxation and administrative burdens are the three negative factors that destroy entrepreneurship in Greece, says OECD.

According to a recent OECD report, 3.3 billion euros worth of burdensome regulations weigh on Greek businesses each year, while a quarter of these could be eliminated. Three-quarters of these costs relate to company law, tax administration and public procurement.

 OECD Deputy Chief of Staff Luiz de Mello stated: “This report takes a careful look at what it is costing Greek businesses to comply with rules and regulations which in many cases are unnecessary,” adding that “cutting some of this red tape would enable companies to spend less on administration and more on doing business.”

The report makes 87 recommendations for cutting down paperwork in 13 areas, including energy, telecommunications, agriculture and tourism. Many of these recommendations involve eliminating obligations to submit several paper copies of a document or dossier to different public authorities.