(Greece) – In an effort to attract big investors to Greece, the government has promised not to raise their taxes for around the next ten years in an effort to attract even more entrepreneurs to the country. Ever since before the first bailout in 2010, Greece’s economy has been struggling. In fact, the country has been in a recession for the past seven years. Even though the bailouts are keeping the government afloat, most people know that the economy needs more than that in order to recover. One of the ways they are hoping to heal the economy is by attracting big investors and entrepreneurs to Greece in an effort to stimulate growth. In order to do that, Greece has decided to offer an incentive or not raising taxes. This is designed to encourage existing entrepreneurs to stay as well as attract new investors.
As part of the three bailout programs, the government has had to implement multiple austerity measures. The international creditors have required these measures, such as raising taxes, reforming pensions, and decreasing government salaries, in order to secure the bailout funds. The end goal of these measures has been to reduce government spending to also increase revenue. Because of the state of the economy, it has been shown that business spending on fixed assets, such as new machinery and buildings, has decreased by 65% since 2006.
To increase capital formation, the Greek government would essentially needs to spend billions of euros that they don’t have. However, the need to increase capital is still there. To solve this problem, the government has passed a series of laws that are designed to attract big investors to the country. Under this law, invest plans that exceed 20 million eros that create at least 40 new jobs could elect to defer taxes for around 12 years as soon as the investment is finished. They also have the option of applying for a subsidy, which will allow for up to 10% of the plan or 5 million euros up front. Both of the options could be eligible for fast-track licensing. Economy Minister George Stathakis said that, Big foreign investments don’t need funding. They need stability.”