| Research Activities |
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| Interventions for the sustainable development of Greek industry: Elaboration of proposals and impact assessment |
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Category:
Microeconomic Analysis
SubCategory:
Others
Date: 13/11/2024 |
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| Manufacturing is a critical sector for the Greek economy, with a significant contribution to GDP and a steady upward trend. However, its participation in key economic figures is still significantly below the EU27 average. In this context, the Hellenic Association of Entrepreneurs (EENE) has developed a series of proposals for the sustainable development of Greek industry. The aim of the study is to examine the proposed interventions and to quantify their economic impact.
In particular, based on appropriate assumptions, it is estimated that the proposal of EENE for zero marginal (additional) non-wage costs on the increase of employees' wages due to the acquisition of a digital certificate leads over a ten-year period to an increase in the disposable income of households by a total of €1.55 billion. In addition, the EENE’s proposal for reduced marginal taxation of fast-growing companies is estimated to lead to €2.57 billion of additional investment in the first decade of the measure. Similarly, the phasing out of the tax advance on companies is estimated to increase investment by €2.76 billion over the ten-year period. The acceleration of depreciation of machinery and equipment may also lead to significant new investment.
The simultaneous implementation of the above proposals is estimated to boost the country's GDP by €1.6 billion per year, employment by almost 17,000 full-time equivalent annual jobs and government tax revenues by €1 billion per year, on average in the first decade after the proposals are implemented, under a baseline scenario in which the existing trends in the growth of business activities in the country are extrapolated. Should the measures succeed in attracting significant new business activities, the effects could be significantly stronger, reaching up to €9.7 billion per year in terms of GDP, €6.1 billion in terms of additional annual government revenues and 128,500 jobs in terms of employment.
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