GSEVEE

The Ministry of Economy and Development and the European Commission co-organized a conference titled “Policies and Financial Instruments for the Development of SMEs in Greece” today, Thursday, April 27, 2017 to support and develop SMEs in Greece.

The conference was attended by the President of GSEVEE, Mr. G. Kavathas, speaking on the thematic “Strategic Approach to Financial Support of SMEs – The Business View”.

The speech of the President of GSEBEE is as follows:

“I would like to thank you for the invitation addressed to GSEVEE and to congratulate the responsible Commission of the European Commission, the Greek delegation and the National Envoy for this important initiative of organizing a conference that goes beyond the already trivial and ineffectual debate on “Appropriate” reforms and memorandum policies and is in the essence of a central structural problem of the Greek economy: identifying the best funding policies and diffusing As the benefits to the entire business community.

At the same time, this conference is an opportunity to open a channel of honest communication between the different actors involved in financing and organizing the country (banks, intermediaries, state, enterprises, European institutions). It is important for all sides to recognize pathogens and systemic mistakes that have led us to a stiff and “sick financial sector”, to zombie businesses and to entrepreneurs who are afraid of the risk of investing, as if they were the tax authority but also to plan joint financial policies for 2020 and beyond.

In addition, this conference enables stakeholders to consult with the European Union and the European institutions and to exchange ideas on how the planned financial policy tools can be redesigned, leveraged and reach the final recipient who really needs them .

A similar effort – and we must acknowledge the positive initiatives that had been undertaken – had been done in the past years under the auspices of the Task Force for Greece, which resulted in the publication of a high-quality version of the conclusions on “SME Development in Greece” Proposals which have been ignored at the level of economic policy-making and the promotion of alternative financial instruments.

GSEVEE owes its role as a higher-level trade union organization and as an institutional social partner to promote both critically and visibly both the institutions and its members: it is not possible at the time we live that businesses only seek through the NSRF or the development law the economic Their survival. We should not think that financial aid is the most effective method of mobilizing investment, but on the other hand let us not forget that public investment – as investments made and not as capital transfers – is an important pillar of the productive formation of a place. Our different approach to this field in relation to some organizations and links is clear: the fact that the country has failed in previous years to make good use of public resources does not mean that we should abolish them, as with the same logic we should To demonize the low lending rates in the cow period, which would make us rather missionaries rather than entrepreneurs.

The fact that the multiplier of public investment in previous years did not achieve a high rate of contribution to GDP growth does not cancel out a significant pillar of actively challenging business and investment initiatives, which, combined with attracting foreign direct investment, may create conditions for rapid recovery Of the Greek economy.

Furthermore, we must not avoid that small businesses have little benefit of low-interest lending opportunities in previous years and rather the distorted structure of funding has led to a tangled growth of services and specific sectors of the national economy. Today, we are faced with this grueling, over-indebtedness, which should not be funded.

Will you allow me in the first part of the paper to refer to some important elements that outline the structure of the Greek financial class, if the condition is allowed.

It is true that in the first phase of small entrepreneurship in Greece, a large part of the transactions went beyond the official banking system, for reasons that were not exclusively about the cost of money, but with the procedures to be followed, the control of the money Flows and flexibility in competition. Before the crisis, only half of small and medium-sized enterprises developed transactions with the financial sector. A significant part of Greek entrepreneurship was served through informal payment systems, delayed payments through the use of post-dated checks and developed alternative financing solutions. The other half of the companies, when they were going to contract with the banking sector, often did it on the basis of servicing the needs for working capital, while the structure of the borrowing products was such that the investment plan was not evaluated but the borrower’s asset image.

After the crisis, the relationship between business and the banking sector becomes even more problematic.

In the primary research of IME GSEVEE, there is a clear tendency for small businesses to move away from the banking sector.

In the most recent survey, over 70% of small businesses said they had no contact with the banking sector, ie the gap between the real economy and the money market was widening.

Similarly, the behavior of businesses, in terms of financial aid and the financial instruments that are offered to them, also show similar trends. Only 6.4% of small and medium-sized enterprises have succeeded in joining a support program through NSRF for development, whereas programs such as island entrepreneurship have failed to attract interest in the past.

At the same time, the most important structural problem of small businesses, in all economic climate surveys, remains the lack of liquidity (with rates above 75%). This phenomenon also occurs systematically in the European market, especially in the southern countries. Besides, at meetings with bank representatives and executives of the Greek Banking Association, it is often noted that at the present stage of the Greek economy, there is a limited demand for financial products and business loans. That is, small businesses with the burdens of needing entrepreneurship are unable to support their project and for this they are afraid to expose and implement a co-ordinated business development plan. This is the one aspect of reality.

How does it explain the lack of systematic interconnection of the financial system and small businesses with the reported liquidity problem? Essentially, this is the essence and subject of discussion of today’s event. This is the paradox of the simultaneous existence of low demand for loans and reduced liquidity.

GSEVEE considers that the crisis and the transformation of businesses and banks into the crisis did not lead to a better matching of needs and loans but removed the two interacting players more. It is perhaps not the time or the moment to assess the mistakes in the new structure of the banking system, the new heavy scheme chosen, the successive mergers in times of thin cows, their financial burden with Greek bonds and the risk of Country and the minimum risk diversification provision. Neither can we evaluate the effectiveness of public policies in recent years as regards their growth penetration into Greek entrepreneurship. It is certain that the classic scheme of investment and incentive organization through the banking sector has failed.

In recent years, it is true that domestic and international funding schemes have been mobilized to support investment projects with multiplier benefits. In spite of the positive signal from international organizations such as the European Investment Bank, the EBRD and other stakeholders, there is a risk of money laundering and misallocation of funds. Businesses do not know where to reach out and how they can make efficient use of available funds and synergies.

GSEVEE has highlighted the goals that a strategy for funding policies should have.

Strengthening some of the policies proposed to improve the financing environment, I will set as the central issues at the dialogue table the following:

1st) An essential tool is the institutional framework that allows the diversification of funding tools and sources to suit the needs of Greek entrepreneurship. In this respect, the possibilities of promoting modern tools for microfinance, participatory financing, factoring and other forms of cooperative banking should be explored. The suffocating framework and the third program do not allow the full deployment of such policies but should be pursued because in Europe similar actions have been implemented with positive effects on local economies.

2) Coordination and dissemination of information on the role and functions of international financial institutions, the structure and feasibility of the NSRF, the analysis of the impact of the Development Law, investment opportunities and strategic investments. Especially for Strategic Investments, the state has to provide guidance for the productive model it wants with sector locomotives (constructions, creation of an agro-food chain with extroversion, alternative tourism, attracting scientists, collaborative schemes of small and medium-sized enterprises).

3) On the part of the European institutions, it is necessary to deepen the COSME and HORIZON programs to include the specificities of the countries of the South. Unfortunately, statistics show that resources are difficult for Greek small businesses, and may need to redesign actions and priorities. Similar arguments apply to EIF (European Investment Fund) actions.

4th) Establishment of a 4-year Investment Plan, with corresponding stability in the company’s obligations (tax, insurance). Ensuring an overall stable environment framework will be beneficial.

5th) Modernizing and expanding the operations of the ETEAN and the Development Funds (eg the Luxembourg Fund), possibly through a single coordinating body. In relation to ETEAN, the proper functioning of the guaranteeing practices should be ensured. From the point of view of company capital leverage, intelligent specialization of participatory financing programs through the allocation of profits to a common Small Business Development Fund. Our suggestion is that even the small business can take part in the investment risk, having received tax breaks.

6th) Specific programs for the financing of clusters, consortia, innovation synergies and open trade centers. The commitment of an enterprise to participate in an organized collaborative cluster – which may involve a single configuration of premises, warehouses, logistics, should be strengthened for outward-looking actions and the development of the internal market. At the same time, a modern legal framework for the creation of cooperative associations / formations should be developed.

7th) Systematic monitoring of the financial flows from the financial institutions by the Bank of Greece and publication of reports for reasons of transparency. Appropriate disclosure and analysis should be available for reasons of refusal of loan applications.

8th) Design of indirect funding and investment mobilization programs, such as public procurement. Information on the use of electronic systems and the widening of beneficiaries to create a local and regional multiplier. The participation of SMEs is of paramount importance to local development and technology / innovation transfer.

Ladies and gentlemen,

I know that it may escape the immediate interest of the conference, but there are two other critical aspects that need to be addressed and I have to put them in today’s meeting: a) the first relates to red loans and the need to deal directly with them, to the benefit of The banking system and businesses. Efficient management of red loans may be an international example of good practice. GSEVEE has repeatedly stressed the need to hijack thousands of professionals, through clearing and re-entry support programs. B) Entry of businesses in the new digital age should be facilitated and not hampered by legitimate and unfair means. The establishment of a bad bank account, the reduction of bank charges are interventions that will lead to a more healthy public-private-banking relationship.

I hope this workshop will be an opportunity to make some steps towards access to finance for companies, better and more efficient organization and management of resources and the orientation of the Greek economy to a more productive and competitive model, with an emphasis on the real economy . The banking sector has an important role to play, as does the state in designing the right tools and funding policies. “

While we are in the final phase of the deal and shortly before the second evaluation, circles of institutions are coming back with new irrational claims and re-raise the issue of Sunday’s opening of the stores by setting it as a prerequisite for closing the deal.

GSEVEE has the obligation to once again inform the citizens of the country, the parties, the enterprises, the producers, the media, the other social partners and warn the institutions of the negative effects that such regulation will have on Market and domestic companies, while also pointing to the institutional deviation that will prevail if this proposal prevails.

While the decision of the CoE plenary (100/2017) on the unconstitutionality of the UN High Commissioner for Human Rights is still fresh, Growth Ger. Yakumatou (K1 / 1119 / 7-7-2014) for the pilot release of 52-Sunday shops in specific tourist areas, is challenging that a door-to-door setting proves to be an empty arrangement that leads to distortions of competition.

Furthermore, there is no international study or research substantiating the necessity of such a regulation, as there are no findings of a positive impact on the economy, either on the level of prices or on the level of employment, or much more on turnover and The number of businesses. It is undoubtedly a worldwide patent that the idea being trafficked is that, given the lower income of citizens – in addition, they have already agreed on a reduction in the tax-free limit for the coming years – there will be an increase in consumption and thereby an increase in jobs.

Even in the OECD’s famous 2nd Competition Toolkit, which we have never been asked to table on our proposals, there is no clear wording about the potential benefits of freeing up shop operations. On the contrary, there are a number of studies that highlight the dangers for a smooth economic and social life, as well as the impact that such a measure will have on family planning and leisure management.

The issue of freeing up shop operations is not only symbolic and value-driven, but it has a wider impact on the economic environment and the market ecosystem. It affects the market related to entertainment, domestic tourism, social events, affects the quality of goods that will be available in fast-food outlets. On an empirical basis, the 8-month economic results on the market indicate a significant decline in turnover over the years of the measure. It is noteworthy that there is no European capital that will apply to the universal operation of all shops all days of the week (from Madrid, Lisbon, Paris to Amsterdam, Brussels, Luxembourg, Vienna).

It is now obvious that the targeting of those who propose such a measure is to further reduce the number of small and medium-sized enterprises, to the advantage of oligopolistic multinational groups. Those groups, which even provocatively demand more favorable treatment and the issue of loan restructuring, with the exception of small businesses, than being subject to the out-of-court debt settlement mechanism.

We call on the government to give this battle without an asterisk and not to hide behind other interstellar bargaining intentions. Negotiation on this issue is not an empty shirt, but a survival requirement for hundreds of thousands of businesses and their employees, is a condition for the recovery of the economy at local and regional level.

GSEVEE, aware of the seriousness and urgency of the matter, will convene tomorrow Thursday’s extraordinary Bureau to take decisions and coordinate its actions. We call on the respective tertiary trade union organizations of the country to do so, with a sense of responsibility and in the light of the national interest of the country and the Greek economy.

* EXTRACT FROM THE PLENARY DECISION (100/2017)

“The Constitution guarantees for all employees and employees (freelancers, etc.) the right to free time and the enjoyment of the individual and their family, as a regular break of weekly work.

This break serves the health and smooth development of the personality of the individual with the physical and mental renewal offered by the regular holiday to the working person within each week (Articles 5 and 21 of the Constitution).

In this connection, it also offers the possibility of organizing its social and family life, matters for which the Constitution also follows (Article 21). “

With the Minister of Environment and Energy, Mr. G. Stathakis, this morning, the President and Vice-President of GSEVEE Messrs. G. Kavathas and G. Asmatoglou, on the subject of the Presidential Decree on the categorization and content of land use.

In a very good climate of cooperation, the GSEVEE amendment proposals on the Presidential Decree were discussed, which concerned, among other things, In the permitted building surface of the ovens, the elimination of the constraints for the sm. Of refreshments and restaurants and specific comments on what the PD provides. For the Fuel and Energy Stores, for the low-level professional labs and the OPAP agencies.

The Minister, Mr. G. Stathakis, welcomed the comments and suggestions of GSEVEE on certain articles of the Presidential Decree.

Today, a meeting of the General Confederation of Professional Craft Traders in Greece was held in the presence of the President of GSEVEE Giorgos Kavvathas and the Secretary General of GSEVEE Mr. George Kourasis with the Minister of the Interior Mr. Panagiotis Skourletis to discuss the Multi-Draft of the Ministry of the Interior «Arrangements for the modernization of the institutional framework for the organization and operation of Municipal Water Supply and Sewerage Facilities (DEYA) – Arrangements for the organization, operation, Economically and the staff of OTA – European Territorial Cooperation Groups and other provisions “.

At the meeting, GSEVEE submitted its proposals for the multiannual plan, in particular Article 53, which deals with the debts arrangements for Local Authorities.

GSEVEE also stressed that it should be included in the regulation that in cases where the Local Authorities have abolished the 2% municipal fee by their decisions and they have withdrawn their decision, the debtors should be “exempt from payment Of the fee for the period between the adoption of the decision and its withdrawal “.

In addition, according to the unfavorable economic conditions prevailing in the framework of the assistance of the professionals of the Sector, a paragraph (amendment of Law 2539/1997) according to which the gross duty for the Entertainment Centers should be set at a percentage 5% upon decision of the relevant City Council.

More specifically:

Article 53

Debt Settlements for Local Authorities First degree

Natural and legal persons’ debts to municipalities and their legal entities, which have been established or not until one (1) month from the date of publication of this law, may be settled and paid at the debtor’s request to the competent authority for recovery Local municipality or its legal person, with exemption from the CCCS Surcharges and interest on late payment and fines for late submission or non-submission or incorrect declaration or non-payment of a fee, as follows:
(A) One-off

(B) from two (2) to one hundred (100) installments, provided that each installment is not less than EUR 20

The installments are monthly and equal to the latter, which may be less than the others and are not subject to surcharges for overdue payments.
The delay in payment of the installment entails a monthly surcharge of 1.2% on the amount of each installment and is imposed the day after the day that the installment had to be paid.
The provisions of Article 1 may also be subject to debts which on the date of the application:
(A) they are suspended, administrative or judicial, or by law; or

(B) have been subject to a payment arrangement or facility which is in force,

C) they have not been certified because they are pending before the courts, provided that together with the application and confirmation from the competent court that the case has not yet been discussed, a declaration of resignation has been submitted by the court or the relevant Tax Appeal Committee Disputes to confirm the debt.

The debtor’s application for eligibility shall be submitted no later than four (4) months from the date of publication of this law.
The regulation is granted by a decision issued by the organs responsible under paragraph 2 of Article 170 of Law 3463/2006.
When tax is included in the regulation, tax evidentiary evidence is provided if conditions for freezing tax evasion are not met for any other reason.

Upon payment of the first installment, the continuation of the enforcement proceedings on movable or immovable property shall be suspended provided that the execution only concerns debts governed by the provisions of this Article. If the borrower loses the benefit of the arrangement, the suspended measures continue.

The repayment or the first installment of the regulated debt shall be paid within three working days of the date of submission of the application for eligibility and in the event of non-payment the application shall be considered as not submitted. Subsequent installments are paid until the last business day of the following months, without the need for a particular notice from the debtor.
The limitation of debts for which an application for legal aid is submitted shall be suspended from the date of submission of the application for the entire period covered by the arrangement, irrespective of the payment of any amount, and shall not be completed before the expiration of one (1) year from maturity Of the last dose.
Persons liable, together with the primary debtor for the payment of part of the debt, are entitled to settle only that part of the debt.
The settlement of the debt is abolished, resulting in the mandatory immediate payment of the balance of the debt in accordance with the elements of the original attestation and the direct pursuit of its recovery with all the measures provided for by the applicable legislation if the debtor:
(A) does not pay three installments or delays the payment of the last installment for more than three months.

(B) fails to submit to the municipality the forecasted statements for the levying of the levy on the gross income and incidental tax, after the periodic VAT returns; And the VAT payable.

(C) has submitted untrue information in order to obtain the adjustment.

Amounts paid up to the submission of the application for membership of the arrangement are not refunded or offset.
This Article shall enter into force on the day of its publication.

The GSEBEE and OPEMED (Alternatives Promotion Organization Dispute Settlement) presented yesterday, Monday 3 April, the benefits of mediation in an information event at the Auditorium
GSEBEE for its members, entitled “Mediation: one size fits all”.

President GSEBEE, Mr. George Kavathas referred to the usefulness of methods and conflict resolution tools such as mediation, particularly for very small businesses and the self-employed, partly because the delay of a court decision can be fatal for their survival, also because the cost of legal proceedings in many cases is unbearable and businesses do not go into this losing their justification.

Especially at this juncture, added Mr. Kavathas that SMEs face serious economic issues and serious legal problems with suppliers, banks, and internally, mediation can prove a very effective tool and a more advantageous financial solution for resolving their differences.

Secretary General OPEMED, Mr. Nicolas Kanellopoulos, presented the institution of mediation and noted that the effectiveness of this as extrajudicial dispute resolution process, and the need for mediation to the economy, society, business, and for the traditional justice system and not only comes to complete, answers and need relief from the courts waiting pending cases.

Mr. Kanellopoulos underlined that the resolution of the dispute through mediation is reflected in a report shall be enforceable and that according to the international experience are excellent results in cases of family, labor, leasing, corporate, construction issues, intellectual property rights, border disputes and medical negligence cases.

Following the event, Ms. Dimitra Triantafyllou and Mr. Spyros Leivadopoulos, accredited intermediaries, focused on micro and small enterprises by analyzing how and to what issues mediation can give court settlement a few days or hours, with commonly accepted agreements by analyzing both the very process, and how you can benefit from the process of the self-employed or small business while avoiding a prolonged uncertainty and preserving or expanding partnerships or relationships through a win- win resolve any dispute.