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Blog: Feeling the heat on my Greek Island
Tuesday 6th September 2011, 8:40AM BST.
Blog: Hello everybody from a very hot Kefalonia. It’s been between 80-90 over the last few weeks — great for holiday makers, but hell on earth for those who have to work. I’m very thankful that I’m retired and out of it, writes Shropshire ex-pat Colin Dodd.
The island is well into tourist mode now. There seems to be a decent amount of people here. The main roads sound like an angry wasps’ nest with all the hired scooters buzzing around. I have seen quite a few skinned knees as well; these roads are not suited to these scooters with their tiny wheels. The surface is very slippery, even in the heat, and the potholes, well, you could bury a sheep in some of them. So, if you come over and hire one of these contraptions, do be careful. It’s better to be ten minutes late in this life than arrive ten years early in the next.
The debt crisis rumbles on ad nauseum. There were more strikes a couple of weeks ago, taxi drivers this time, protesting against the Government plans to de-regulate them. However, the Council of State, Greece’s highest administrative court, ruled on August 31, that ALL closed professions in Greece are unconstitutional. This is a much needed shot in the arm for the ruling Pasok Party, led by Prime Minister George Papandreou, who were facing massive opposition to their plans. Now, all these regulated professions will be open to anyone — ‘and about time too’, is the general reaction of the public here.
The following are just a few examples of closed shop jobs: beauticians, drama and dance teachers, bakers, antiques dealers, insurance agents, insurance consultants, employment consultants, diagnostics centre staff, translators, divers, newsstand owners, electricians, sound technicians, tobacco sellers, hairdressers, private investigators, port workers, real-estate agents, lifeguards, carpenters, financiers, opticians, auditors and even car mechanics.
As you can imagine, with no scope for competition, these trades have been on the gravy train for decades, hence the violent opposition to de-regulation. The public sector staff have not escaped either. They are having their wages capped, more or less in line with the private sector, currently around 700 euros per month. They are NOT happy bunnies at all, and the public reaction here is — TOUGH. Again, decades of over the top pay and pensions, all contributing to the mess the country is now in, and the strange thing is, when asked what the alternative is, they say ‘Who cares, we want our money’. Blinkered indeed.
Another positive this week, Alpha Bank and the Eurobank EFG have merged to form the country’s biggest bank, displacing the National Bank of Greece. This was achieved with an investment of 500 million euros from Qatar. The problem before was that Greece, a small country, had a very large number of small banks, which was, economically, senseless. None were really strong, and thus, the economy was on a knife edge. Hopefully, this latest development will inject some confidence in the economy. A small step, but at least it’s in the right direction.
Greece is not out of the woods yet, but maybe we can see the path.
I’m now off for a siesta, with a big fan for company. Evening is going out time now, when the sun has gone down. It’s still damn warm but bearable. Goodbye all, and wherever you are holidaying this year, enjoy and be safe.
All the best,
Colin
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Hi Colin,
Coming back to Assos for the second time this year and for the nth time in total. I’m wondering whether it would be wise or foolish to buy a place to call my own. They are not cheap.
D’you reckon property prices are about to collapse? Or will the foreign buyers always keep the prices at similar levels?
Cheers,
BG
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Hello bggrice. A lovely little place, Assos, hope you have a good stay.
There are some cheaper places to be found here, but you have to be prepared to look round, and not look to live too close to the main resorts, the property there is much dearer. I think the prices will hold, as most of the properties are, as you say, foreign owned.
You can pick up a reasonable priced house in one of the villages, and, as you know, you are not really isolated as you can drive the island from top to bottom in 4 hours comfortably.
Best to come for a few weeks out of season, accomodation is cheaper and car hire too. Have a wander round and see what catches your eye.
Enjoy your holiday,
All the best,
Colin.
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Hi Colin. Thanks for your interesting piece.
I have a few questions.
1) In June the Daily Telegraph reported that Greece loses 15bn euros every year due to tax evasion.
At the same time the government is closing 130 tax offices and slashing the number of tax collectors.
Is the public as positive as you said they were about that particular part of the austerity drive?
2) It seems to me that austerity policies and policies aimed at maintaining a stable exchange rate for the euro are the real culprits for the strangling of the Greek economy.
What do the Greeks you know think of that argument, and is there any appetite among your Greek friends for getting out of the euro?
3) You said that one of Greece’s main problems was the fact that it has lots of very small banks, and so you welcomed the merger of Greece’s 2 biggest banks.
Is anyone making the argument in Greece that one of the main problems in the credit crisis was that big, over-indebted banks were ‘too big to fail’?
Is anyone saying that maybe this merger is not such a great idea, if those Greek taxpayers, who do pay tax, end up having to bail out Alpha Bank-Eurobank EFG in the future?
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Thank you Huw. Yes Greece does lose a lot of money to tax evasion, and they have set up a soecial unit to fight this. They are even using Google Earth to view propoerties that “appear” to be too expensive for the declared income of the owner. One guy was living in a 2,000,000 villa after declaring an income of 40,000 euros for the last few years.
The tax offices that are closing are just an example of over-staffing. The public sector is grossly over-staffed, and they do not do their job properly, plus, there are a lot of back handers taking place. All a recipe for disaster.
The demos on the mainland have all been instigated by public sector employees, and those in the closed shop jobs I listed. The gravy train is coming to a halt, and they do not like it. The general public are very positive, (most of them), about the measures. They know that if the current situation was allowed to barrel along unchecked, Greece would go bust big time.
The bank merger is good news, welcomed by the Greek people with a bit of foresight. Two small, not very strong banks, are now the biggest. Their assets are better, and this should encourage foreign investment, and, maybe, more mergers of the remaining small banks.
The crisis is far from over, and I must admit, a lot of the goings on here are over my head, I seek education from those in the know, my thanks to them.
Sorry for the delay Huw, and thanks for your kind words.
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Just spotted a few spelling errors, trying to type too fast, an old man thing.
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