This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Greece's Weakened Workforce Starts To Crack

According to GSEE researchers, two-thirds of employees in the private sector no longer receive regular pay. Adding to these problems are the large increases in taxes that Greeks have to pay.

Struggling to pay down debts, The government's latest austerity measures include an overhaul of tax rules, axing deductions used by most families â¿¿ for having children, mortgages on first homes, life insurance and some education expenses.

Most people earning up to ⿬25,000 ($33,425) a year will see a small decrease in their income tax bill, but everyone above that level will see an increase. Someone earning ⿬35,000, for example, previously paid ⿬7,070 in taxes per year but will now pay ⿬8,050.

Meanwhile, further charges were levied on electricity bills, with households that failed to pay disconnected from the power grid. And another round of tax hikes took effect this year.

That pressure is pushing Greece toward a tipping point at which too many demands placed on a shrinking tax base, argues Savas Robolis, a professor of economics and public policy at Panteion University in Athens and lead researcher at the GSEE union.

According to government data analyzed by the GSEE, 3.6 million people out of a population of 11 million are working, with 1.6 million employed by private-sector companies â¿¿ that's down from around 2.5 million before the crisis broke in 2010.

"Out of them, about 600,000 are left who still work an eight-hour day and are paid regularly," Robolis says. "The remainder â¿¿ a million workers â¿¿ have had their hours cut or are getting paid late, four or five months late. They are in a state of desperation."

"In other words, Greek workers and unemployed people may soon not have enough money left to pay taxes while covering their basic needs. If that happens, it would be the worst possible outcome for the Greek economy and Greek society."

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,696.17 -55.22 -0.31%
S&P 500 2,100.31 -8.26 -0.39%
NASDAQ 5,090.3690 -21.3640 -0.42%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs