LOCAL RESIDENTS VOTE ‘OHI’
TO THE DRACHMA’S RETURN
February, 2012

In a combined reverberating voice that would have made Prime Minister Metaxas proud, the residents of northeastern Crete, from Iraklion to Aghios Nikolaos, voted an overwhelming “OHI” when asked if the country would be better off by returning to its old currency of the drachma.
In the independent survey taken among readers of The Khronicles Online, as well as other local consumers and business leaders, the vote was an astounding nine to one, with only two abstentions, in favour of remaining with the euro, no matter what.

Renia Drosou, Director of European Programs in the Iraklion Municipality and president of the women’s association Irida, replied with a very emphatic OHI.

“If Greece comes out of the EU, it would most likely start of a domino effect, and many other countries, not only Greece, would suffer dire consequences,” she said.

Typical of the responses of the survey was that of Lydia Moore: “No! Absolutely not, it would be a disaster. It would be a worthless currency and prices would quadruple.”

While Petra Karreman Kakoudakis voted “no,” she qualified her response by adding, “of course, I do not know enough to give an answer which is based on knowledge, only on my own feelings.”

Eleni Priniotaki, the Social Worker at the Model Homes for the Elderly, said:
“No. I don’t want the return of the drachma. No one would benefit from that.”

Wendy Estelle voted no and explained:
“If that happens it means we are cut off from the EU, and will be completely on our own. This would only happen if the country goes bankrupt, then it would be horrendous. I would hate that that to happen."

In the business community, Giorgos Haritakis, an exporter of natural Cretan products, voted no, stating it would be disastrous to all Greek businesses, and, therefore, all the people would suffer undue hardships. But, Yiannis, owner of the BioTerra shop in Kokkini Hani, wasn’t quite sure, so he refrained from offering a definite answer. “Returning to the drachma would probably be good for tourism, which is vital to Crete, but I’m not too sure if it will be good in the long run. At this point I just don’t know which way I’d vote.”

To be or not to be, with respect to Hamlet, that is the question concerning the drachma as the currency of Greece. However, if you’re one of those pessimists (at the time) who had of little faith in the euro and stuffed drachmas under the mattress, you may as well keep them there as extra padding. According to the country’s top financial insiders, if Greece were to exit the EU, a totally new version of the drachma would be designed, rendering all the old currency obsolete and worthless.

PROTEST AT THE HERSONISOS TOWN HALL
Fuchtel is Undesirable - No to Submission
(February, 2012)

With banners and chants against the German overseer (Merkel’s eyes and ears in Greece) Hans-Joachim Fuchtel, the Citizens Against the Debt demonstrated outside the Hersonisos Town Hall recently saying that the mayor, Mr. Zaharias Doxastakis shouldn’t have sought out Mr. Fuchtel’s collaboration on any level and under no circumstances.  They were referring to the letter the mayor sent to Hans-Joachim Fuchtel – a labor vice minister in Germany - asking for support and technical help for the municipality and for the development of the region.

The mayor, though he knew about the protest, elected to be absent so the assembled people delivered the protest declaration to the vice mayors messrs. Yannis Mastorakis and Yiorgos Hirakakis. The protestors underlined that Mr. Fuchtel as well as the Troika representatives are not wanted on the island. The vice-mayors maintained that the mayor’s “call for help” to Mr. Fuchtel concerned technical aid for sectors in the local government.

The protestors clarified that “it is tragic we ask technical aid from this German spy for Merkel” and underlined that “the mayor’s letter opens a treacherous gate for investments by German companies that come to butcher the Cretan landscape.”

“The mayor pushes aside all Greek scientific personnel and asks for German help in order to get studies and ensure subsidies and financing. For a fee for the Germans of course…”

“German interests are lurking behind the plans for huge installations of Aeolian and Photovoltaic Parks, behind the proposal for a factory for the combustion of refuse in Crete and behind the investment proposals which occasionally have been published regarding the land at the former American Base in Gournes.”

“It is a curious coincidence” they continued that “the request for help by the mayor, concerns technical aid for precisely these sectors (management of solid and liquid waste, land-planning and urban planning etc.)”  

A field of pros and cons regarding the Fuchtel issue developed at the last Hersonisos Municipal Council when the Citizens Against the Debt argued that the mayor’s invitation constitutes a deep provocation for the local society whose interests are not being served through such manoeuvres and the head of the opposition Mr. Nikos Belivanis described sending this invitation as a non-ethical step by the mayor as many of the councilmen were not aware of it. The mayor was not present during the last council meeting and further discussions are expected on the subject.

IMF'S THOMSEN:
GREECE’S MINIMUM WAGE
TOO HIGH
(February, 2012)

“Greece still has a large competitiveness gap,” says the International Monetary Fund’s chief of the IMF mission for the Greek economy, Poul Thomsen. "Closing this gap will require actions on many fronts, not only wages, but it is clear that wages for the economy as a whole are too large compared to Greece’s productivity. One could hope to magically raise productivity to levels that will justify the current wage level. We are trying, but there is a limit to this. Thus, part of the adjustment must come by more closely aligning productivity in individual enterprises with wages. Reforms to the wage setting mechanism, to the system for collective agreements could help in this regard."

Regarding the minimum wage, he says, “If such reforms cannot deliver results in the foreseeable future, we believe that the government should consider more direct interventions for a temporary period, until reforms become effective. These could include limitations most definitely on the minimum wage and possibly the 13th and 14th salaries.”

“The minimum wage is dramatically higher in Greece compared to other countries with similar problems. It is very near to that of developed countries. In Portugal the minimum wage is 35 percent lower than that of Greece” he stated.

THE NEW YEAR IN CRISIS:
A VERY TAXING SITUATION
(January 2012)

As predicted by every kafenion customer throughout the country, Greek citizens will get hammered even harder in 2012 due to new tax measures already planned, plus even more that are sorely needed, in spite of the IMF stating that they do not want to see any new tax burdens on the people.
The fact is that additional measures have already been planned and will eat even further into disposable incomes.



The Finance Ministry expects to receive about 7.3 billion euros from some 5.5 million taxpayers, but even if that amount is indeed cashed in it will not be enough to plug the hole created by the state’s failure to meet the 2011 targets for revenues and expenditures. As a result, approximately another 3 billion euros still has to be found, most likely through extra moves that have not been planned as yet.




To date, some of the plans to bring in additional revenue  s for the new year include: the reduction of the tax-free ceiling from 12,000 to 5,000 euros per year with the simultaneous increase in tax rates for the other brackets, entailing an extra annual burden of 100 to 900 euros, and the amount of money withheld from monthly salaries will now be calculated based on the  new tax-free ceiling.

Some 500,000 taxpayers who had their statements processed in the last few days will have to pay the extraordinary charge for their 2010 incomes. Then there is the payment of the extraordinary charge for 2011 after the statements to be submitted this spring are processed, while the charge on 2012 incomes will be cashed in through the monthly reduction of salaries.



The professional levy on the self-employed and small and medium-sized enterprises will rise from 300 to 500 euros.
About 2.5 million taxpayers will be taxed according to their possessions and not their stated income, up from 1.3 million last year.



Tax exemptions have been drastically cut, while the special consumption tax on heating oil will soar by 40 cents per liter from October 2012.

Property taxes are expected to add up to 4 billion euros this year, through the Single Property Tax (ETAK) for 2009, which is still pending, the Property Tax (that replaced ETAK) for 2010 and 2011, the extra property charge paid via electricity bills and the additional levy on those with property valued at 400,000 euros and over in 2009.

CRETE BUSINESS LEADERS CONCERNED
OVER CRISIS-RELATED SUICIDES
(January, 2012)

In the wake of what is believed to be another crisis-related suicide on Crete, concerned business leaders are considering setting up a special counselling unit to assist local entrepreneurs.

The move comes only days after the latest suicide, that of a local olive oil exporter, whose name has been withheld by authorities.

At least 20 suicides have been recorded on Crete over the last 12 months, several of which involved local businessmen who had run into financial difficulties. The latest Cretan to commit suicide was a 66-year-old olive oil exporter who shot himself with a hunting rifle. Authorities suspect his mounting debts caused him to take his own life.

“We are prepared to work with the local doctors’ association to create a structure that could offer psychological support to local businessmen who are going through difficulties,” the head of the Hania Chamber of Commerce, Yiannis Margaronis, said.

Greece saw a rise in suicides last year. Official statistics are not yet available but police recorded 511 suicides in 2011, compared to an average of about 400 for previous years, and that number is expected to rise significantly in 2012.

GOVERNMENT’S NEW YEAR’S RESOLUTION:
REDUCE MINIMUM WAGE; CUT SALARIES
(January, 2012)

Greece might have to reduce its minimum wage and private sector workers could have to accept severe salary cuts as part of the reforms needed to secure funding without which the country is likely to go bankrupt by March, Prime Minister Lucas Papademos told union leaders recently.

For the first time since the economic crisis began, the issue of both the minimum wage and private sector salaries were laid on the negotiating table. So far, unions have sought to protect changes to both, although in reality thousands of private sector workers have seen their wages reduced over the last two years.

“We will have to accept limited sacrifices to prevent a catastrophic outcome – we have to give a little now so we do not lose a lot,” Mr. Papademos told representatives of Greece’s largest private sector union, GSEE, as well as the Hellenic Federation of Enterprises (SEV), National Confederation of Greek Commerce (ESEE) and the General Confederation of Greek Small Businesses and Traders (GSEVEE).

“It is my duty to inform you of the country’s real situation… these changes are not only necessary so we can get the next loan instalment but in order to rebuild our economy and to restore lost competitiveness and fiscal stability,” said the prime minister.

He also made it clear that Greece’s competitiveness is not just dependent on wage levels – he mentioned other factors such as the country’s public administration, infrastructure, corruption and the quality of goods and services – but said that unions and employers would have to come to new agreements. Apart from the minimum wage, he indicated that the 13th and 14th monthly salaries that most private sector workers receive would have to be re-examined. The interim prime minister also suggested that automatic pay rises would have to be scrapped and that labor laws would have to be simplified.

Mr. Papademos said employers and unions would have to agree this month as Greece is under pressure from the European Union and the International Monetary Fund to carry out structural reforms that would secure further loans. “Without an agreement with the troika and the ensuing funding, Greece faces the threat of a disorderly default in March,” said the premier.

Representatives of GSEE and GSEVEE rejected the notion of making changes to pay and terms in the collective labour contracts. ESEE is proposing a three-year salary freeze. SEV proposed that the unions hold further meetings.

THE ‘RISKIEST COUNTRY TO INVEST IN’
(January, 2012)

According to banking giant Credit Suisse, Greece is the most dangerous country for investment.

The list of countries with the highest risk for investment has Greece on top with 56.7 points, followed by Portugal with 54.5, Iceland with 53.8 and Ireland with 49.6. Turkey is 15th with 36.7 points.



The Swiss bank examined data from 50 countries around the world, taking into account current account balances, state budgets, debt and other factors, according to the lender’s web page.

Despite the bad publicity for Greece, Development Minister Michalis Chrysochoidis recently tried to attract Danish investment during a visit to Copenhagen.  Addressing the European Business Day conference in the Danish capital, the Greek minister said that “the economy adjustment program aims at returning clear results in the sectors of competitiveness and growth in Greece.”

MISGUIDED SOLUTIONS
FOR THE COUNTRY’S ECONOMY
By Dimitris Briassoulis
Professor at the Agricultural University of Athens
(December, 2011)

Greece has the means to achieve food self-sufficiency and to produce as well as export quality agricultural products at low prices. Nevertheless, in 2009 it spent 6.5 billion euros on imports of agricultural goods.
Also, in 2010 it shelled out 6.3 billion euros on food imports. In the first half of 2011 59.8 million euros went toward potato imports, 14 million euros on pulses and 59.65 million on vegetables. Some 11.4 million euros was spent on imports of onions and garlic in 2010.

In 1990, Greece’s balance of trade deficit was 446,660 euros, by 2002 it had soared to 1.7 billion euros, while in 2006 it stood at 2.1 billion. Greek imports in 1990 were valued at 1.6 billion euros, in 2002 the figure was 4.7 billion euros and in 2006 it was 5.9 billion. Agricultural products account for the biggest chunk of this deficit. In 2010, Greece spent 1.085 billion euros on meat and meat-based products (99 percent was produced in the European Union). At the same time, Greek exports amounted to a mere 56.7 million euros.

The problems are well known and successive governments have in the past announced measures to remedy the situation. Nevertheless, photovoltaic parks are taking up more and more farmland - a development that is having negative repercussions on the country’s production base, the landscape and even on the farmers themselves, who have grown accustomed to misguided subsidies.

Greece must meet specific targets regarding the contribution of renewable energy sources to its energy balance. But how? Destroying farmland and continuing to import agricultural goods at today’s exorbitant levels is clearly not an option. Farmland is not only made up of high-productivity land, it also includes areas where herbs are cultivated in soil suitable for little else which can be manufactured into high value-added products. Meanwhile, the smart exploitation of pasture land could contribute to reducing imports of livestock products and boost exports of high-quality certified livestock products (with protected designations of origin).



Today the estimated revenues from renewable energy systems appear fragmented and problematic. In fact a number of questions need to be addressed: Why install photovoltaic panels on farmland (regardless of productivity)? Do surveys take into account the loss in potential agricultural production? Who covers the cost for the additional networks serving the high-maintenance photovoltaic systems? The government’s response to all these issues is simply to raise the price of electricity in order to pay for the renewable energy systems.

The above points to poor handling of the issues surrounding the photovoltaic and renewable energy systems. Solar panels could be installed on the often ugly rooftops of Greek cities, which could then be connected to the existing power grid. As far as the Helios solar energy project is concerned - the aim of which is to export cheap solar energy to Germany - any free land should be used to make up for our inadequate agricultural production. In fact, Greece has to import onions and garlic from Germany. Like with photovoltaics, the mass installation of huge wind generators and the accompanying infrastructure (roads and power stations) have many negative consequences, foremost of which is that the natural environment - which is the biggest advantage of regions that depend on mild forms of tourism - could be damaged beyond repair.
In the name of development, the people and local authorities are willing to hire out their land to investors who are subsidized (also by citizens themselves). The impact of the policies adopted in the past two years is devastating. Greeks have become retailers of their land, of their natural resources, of their ethos and history.

DISCOUNT VOUCHERS, SPECIAL OFFERS
TOP OUR SHOPPING LISTS
(December, 2011)

Greek households are resorting to special offers and discount vouchers in an effort to reduce their monthly expenditure, as the time of overflowing shopping carts in supermarkets seems long gone.

A global survey by research company Nielsen found that Greeks visit retail stores only to get their basic supplies, with 63 percent opting for products on special offer, while more than half use discount vouchers (55 percent) or choose economy packs (51 percent).

Three-quarters of consumers (76 percent) say they choose the stores they shop at for their everyday needs based on the discounts and the low prices advertised. Only 2 percent said that they have not made any efforts to cut their household expenses.

A MOVEMENT OF SOLIDARITY:
Being Close To Our Fellowmen…
(December, 2011)

The Aghios Nikolaos municipal government recently sponsored a forum for the “Movement of Solidarity,” in order to coordinate efforts to help their fellowmen during a period where many find themselves on the fringes of desperation.

The meeting, chaired by Mayor Dimitris Kounenakis, was attended by numerous volunteers and local institutions, who eagerly responded to the opportunity of helping those in need.

Among the individuals and organizations on hand were vice-mayor Manolis Ekaterinakis, representatives from the municipal social services, representatives from the Red Cross and the Hospice of Chronic Diseases, priests from all parishes in the municipality, educators from primary and secondary levels, representatives from parents and guardian associations, cultural associations, representatives from the bar and restaurant associations in the municipality and countless volunteers.
Those assembled agreed that if they coordinate their efforts and organize their actions and ideas they could successfully help the needy in the municipality. To achieve this objective a 12-member coordinating committee was appointed, and shortly thereafter presented an organisational proposal regarding the direction of the efforts and initiatives in confronting the problems.

The core of this solidarity movement is made up from the combined efforts of the welfare services and the social services in the Aghios Nikolaos municipality. And due to the upcoming holidays, they call on all institutions, associations, enterprises and private individuals to help support this movement by offering goods, services or money to help the needy.

And, they also ask all the families who need help to call on the following services:

• The offices of the Social Services Organization in the Municipality (Mirambello building next to Aghia Triatha) telephones 28410-86090 & 86100

• At the KAPI in Neapolis, telephone 28410-32245

• At the offices of the department of Social Aid of the Aghios Nikolaos municipality, telephone 28413-40390 

At the Local Municipal Communities of Aghios Nikolaos, Kritsa, Elounda, Neapolis, at the cultural associations as well as associations which practise social policy.

A SIGN OF THE TIMES:
GREEK MONEY GOES TO GERMANY
(December, 2011)

As fears continue to mount over the collapsing Greek economy, many local citizens reportedly are taking their savings, regardless of the amount, out of banks…but where is it going?

Some people are stuffing their cash into mattresses or pillow cases, others are packing it into suitcases and heading for what they hope are greener pastures in places like Australia, and still others are buying up properties in other countries, even nearby Germany.

Recently, Germany’s ARD Network broadcasted a program with the introduction:  You don’t have to go far to find Greek cash. Go to Berlin, and, with syrtaki music playing the background, it reported the influx of Greeks buying property in the German capital.

“These days an apartment in a decent Berlin neighborhood costs less than one in a rundown district of Athens,” said Calliope Scherer, an Athens-based real estate agent who appeared on the German program, who added that a house in Berlin costs an average of 1,000 Euros per square meter, making property an attractive investment for mid-salary earners.

“I keep getting phone calls from people who have put aside between 50,000 and 200,000 Euros, and who are concerned about their savings,” said Mrs. Scherer, who has been working in the Berlin real estate market for over a year.

In the Greek collective subconscious, Germany represents economic security.

“The German tax system is straightforward and stable, while buying property is considered a good investment,” she said. “After all, most of the houses that are up for sale are already rented out, and Interest has gone up since early September. More than 30 potential buyers have turned up, some of whom may travel with me to Berlin to check out the advertized properties.”

LIKE RATS FROM SINKING SHIP
MULTINATIONAL FIRMS READY TO RUN

(November, 2011)

Multinational companies with holdings in Greece are growing increasingly concerned about the negative climate and are considering the option of pulling out as they expect 2012 to become even harder given Greeks’ shrinking purchasing power.

With unemployment in Greece already at 16.5 percent and climbing, the crisis eating away at household budgets and at the country’s gross domestic product (GDP), it is estimated that the market will shrink to 207 billion Euros in 2012 from a projected 230 billion Euros this year.

The departure of the German electronics store Saturn -- one of two chains being run by the Metro Group in Greece -- confirms the pessimistic trends and comes on top of the pullout of French book and multimedia store Fnac and German discount supermarket Aldi, which is the biggest in Europe.

Greek companies, meanwhile, are adopting a wait-and-see stance, even though the Plan B for most companies investing mainly in exports is a transfer abroad. So far, Coca-Cola Hellenic Bottling Company has opened a human resources and financial services department in the Bulgarian capital Sofia. It is worth noting that Athens-listed Coca-Cola HBC, the world’s second largest Coke bottler, sells just 10 percent of its overall production in Greece, while in Sofia, it is operating three production units and employs 1,300 people.

Baked snacks company Chipita is seriously considering moving its headquarters to Bulgaria for tax purposes, while the Carrefour-Marinopoulos supermarket group recently “froze” a lar ge part of its investment program and has postponed plans for expansion. Meanwhile, plans to open 14 Planet homestores in Greece have been trimmed down to 10 stores, without a timeline.

Other large companies whose production was based in Greece, like Procter & Gamble, opted for restricting their presence to commercial activities only, which would give them greater profits.

BUSINESSES TO CUSTOMERS:
‘PAY UP OR GET OUT!’

(November, 2011)

The old adage that the customer is always right is being rewritten to fit today’s climate: “The cash customer is always right.

The current crisis and the slowing cash flow in the market have made the risk of bad loans even greater than that of having no customers, and, according to a local survey, businesses and shop owners would rather lose a customer or turn one away if they think that they may not end up getting paid.

At the beginning of the crisis, the need for a more stringent assessment of existing or potential clients was first recognized by the banks, which reduced the number of new loans it issued by imposing stricter criteria.

Now, customer selection has spread to almost all other businesses. So, together with the credit that many businesses extend to their regular customers, such as by accepting postdated checks, they also issue a warning that if they do not pay up, they will no longer do business together.

This trend is confirmed by the Greek Association of Higher Credit Risk Managers, which notes that an increasing number of businesses are assigning customer selection to their financial or commercial departments, adding that there are also many companies commissioning private agencies to perform this service.

Customer selection tends to be more prolific when the client is an individual or a freelance professional, according to data. Even though there are not a lot of small businesses turning away clients, the fact that there are any at all is telling. Meanwhile, among larger businesses, the rate of clients being turned away has increased in the past year by up to 50 percent.

STUDY SHOWS FINANCIAL CRISIS
AS MAJOR HEALTH HAZARD

November, 2011

 The Greek financial crisis has become a health hazard.

Economically vulnerable Greeks are losing health care access amid dwindling budgets, facing higher risks of HIV infection and sexually transmitted diseases, and in some cases, even dying, according to a study released online Monday by The Lancet, a British medical journal.

Citing data from the Greek government, the European Union and other sources, the authors of the report traced an alarming deterioration in health data in the past few years as Greece struggled through annual recessions that have pushed it closer to a default despite international bailout efforts. Greeks are struggling to cope with austerity measures that have triggered strikes and protests.

Unofficial data reported in the Greek parliament cite a 25 percent rise in suicides in 2010 over the previous year, and the health minister reported a 40 percent rise in suicides in the first half of 2011 compared with the same period in 2010, according to the Lancet report.

One of the co-authors, Alexander Kentikelenis of the sociology department at the University of Cambridge, said the study reported on issues “we know are directly related to the crisis."

The data noted a sharp rise in HIV infections in late 2010, as well as projections that new infections will rise by 52 percent to more than 900 this year compared with 2010. Half of the increases so far are attributable to infections among intravenous drug users.

Data for the first seven months of this year show more than a 10-fold rise in new infections in these drug users compared with the same period last year. Many are infected because of unsafe sexual practices.

"The way this is linked to the financial crisis is that injecting drug users do not have access to occasional employment or handouts or pocket money from parents,” Kentikelenis said. Many, he noted, “resort to prostitution to cover the costs of the drugs."

Heroin use has also risen, while budget cuts have led to the loss of some work programs for people living on the street.

Kentikelenis said there was a significant lag time in obtaining data on health care, in contrast to some market and other financial data that is available almost immediately. The year 2007 was used as a “pre-crisis baseline” in the study, he said.

The report cited data showing that homicide and theft rates nearly doubled between 2007 and 2009, and that the number of people able to obtain sickness benefits declined by around 40 percent during the same period, probably due to budget cuts.

The authors of the report, which was subtitled “Omens of a Greek Tragedy,” said there had been significant reductions in alcohol consumption and that police data show incidents of people driving while drunk have dropped.

"There is space for government intervention that will make the situation better,” Kentikelenis said. “The situation, we think, is still reversible."

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POETRY CORNER

Everyone is invited to submit original poems in either English or Greek for publication in The Khronicles.  Each month one or more poems will be selected and, in December, all published poems will be judged and prizes awarded. Submit by Fax: 2810-762816; by e-mail: poetry@ko-go.gr , or in person at our editorial offices in Kokkini Hani.

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