Thursday, 7 November 2013

The Souvlaki economy

Before 2008, top investment  in Greece were: Construction, garments, real estate and night life.
Now 90% of 2012  new business are Coffeeshop and Souvlakia!

Simple, the cost of manufacturing in Greece is still higher than most countries in EU not because salaries are higher but Taxes are beyond meaning, in a small business you could more easily bend the law but when you want real investor, manufacturing and business and they try to follow the law, the cost of manpower go beyond sense of investing ''apart of the fact that this is impossible in all case to keep the pace, as laws are non stop changing''

A worker paid 800 Euro in Greece, cost employer 1400 while in Germany  would cost 1200 add to that the higher cost of electricity, Natural Gas, energy, communication, you got a business model that is not viable in an environment were the law and taxes keep changing by the hour, a guarantee formula of failure for whatever effort made by any government.

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