Following the government’s announcements and the 24 billion-euro package of measures to support labor, the economy and boost tourism, tomorrow’s security seems uncertain as long as the system itself fails to guarantee the employee’s income.
Thousands of jobs have been lost, and small and medium-sized businesses are losing their jobs due to a lack of liquidity. Therefore, the reduction of the Value Added Tax is a drop in the ocean when the increase in unemployment and the crisis deepens after the chaos left by the Covid-19.
The New Democracy transcends itself with its political decisions, leaving behind its neoliberal program and doing other things, primarily what its needs dictate. This is on the one hand an advantage of the government, but on the other hand it shows that it does not have the necessary forces to consolidate this policy. Representative democracy proves to be incomplete.
Much of the neoliberal program is being scrapped, such as the privatization of infrastructure. And all these measures that subsidize labor are because there can be no work but the beginning of its end. Something that the previous Syriza government failed to guarantee or defend. So the measures are changing, the mix of the economy, and we are moving into a mixed economy of strong state intervention. This contradicts the New Democracy program that won the election.
Despite the measures, we will experience a major recession, according to government officials who have seen it last a long time until 2021. Until then, privatizations are suspended, tourism is stagnant and labor will shrink.
They say that we will have a recovery, something that is not ruled out, but how many companies will be reopened from those that have closed and how many have the funds or reserves to stand? This is the problem…
Even after 2021, incomes will be low and unemployment will be high. New sectors must be found in the economy that will get us out of the recession. It is something that the parties of the last decades did not take care of in order to fight unemployment. The embarrassment of the parties in the face of the rise in unemployment was obvious.
No substantial solution was found despite their pre-election announcements. Sustainable energy and sustainable development are areas for study in investment programs. Another area is the digital state. With it we reduce the operating costs of the state and finally for the citizens. If taxes are reduced, costs must also be reduced.
Today the state is taking measures and making announcements to spend resources. In general, the economy needs to find countermeasures at a time when some sectors are being destroyed. The most important pillar of the economy, called production, is missing, even though we have made rapid progress in technology. Having billions of euros to spend resources means that the system does not have the tools to do the job. Based on unemployment, any announcements now and in the future have absolutely no effect, except for the pathogenesis and maintenance of it, with thousands of companies the same pathogens.
The problem is that with the depth of the crisis, instead of leveraging the economy, we will have leverage. This means that when we have sectors of work and economy that do not unblock everything that has been given for reconstruction, as a result it has deconstruction. And any other leverage move made in the long run has the effect of leveraging. So big funds are needed for new structures, new policies, so that the system does not collapse from the deep recession.