Government takes emergency measures to avert implosion of Greek economy

When Prime Minister Kyriakos Mitsotakis in a nationally televised address yesterday stated that the aftermath of the Coronavirus pandemic may be "nightmarish" and that "there will be victims" one may well assume that one of them will be the Greek economy which was already struggling to recover from a decade-long depression.

In the crucial battleground of public health the government will spend 200mn euros beyond funding in the 2020 budget and Finance Minister Christos Staikouras said he will deny no health ministry request. He projected a growth rate of slightly above zero percent, although have been projections of a shrinking of the Greek economy.

Layoffs as of today will be null and void

The most important measure for labour is theoretically the across-the-board ban on layoffs, but that of course is little consolation for workers at the tens of thousands of businesses that are expected to shut down.

If businesses that will re-open violate this measure they will not be eligible for the benefits that apply to businesses that were shut by state decree.

Balancing needs of business, labour

The aim is to strike a delicate balance between the rights and needs of both labour and business within the extremely tight fiscal framework that is the legacy of Greece's bailout memorandums.

There will be EU relief on various levels and most importantly the suspension of the 3.5 percent primary surplus target which Greece had agreed upon with creditors long before the pandemic.

Employees of businesses the activity of which was suspended by the state will receive a one-off 800-euro stipend.

Suspension of insurance contributions, expansion of flexible labour

As long as...