2024-05-22 20:59:22
The federal government’s resolution to “internationalize” the issue of accuracy with the prime minister sending a letter to the president of the European Fee and asking for European intervention, brings again to the fore an present downside that has remained unresolved for 10 years.
The truth that Greek customers purchase some merchandise extra expensively than in most central European international locations is just not new. However it’s now turning into extra intense due to the inflationary disaster that has hit disposable earnings. Much more so when this inflationary disaster finds the nation within the first steps of recovering the misplaced floor from the multi-year disaster that plunged the disposable earnings per capita to the penultimate place in Europe.
Why are the multinationals as soon as once more within the highlight? (it was preceded by the infant milk case but additionally by the laws of anti-accuracy measures that primarily focused objects traded by overseas corporations). Whereas executives from multinational corporations have been dashing to attribute political incentives to the federal government since yesterday (as punctuality is by far the primary family downside), the very fact is that there are a selection of points which can be lingering.
The identical product is bought extra expensively in Greece as a result of it has a distinct packaging or a distinct title. The revenue margin of the subsidiary within the nation is just not simple to calculate as with the “inflating” of royalties (proper to make use of title and so on) or different accounting strategies, the subsidiaries in Greece seem to function at a loss although the buyer pays extra right here than that out for a similar product. A washer capsule that with out the supply in Greece you’d purchase for 53 cents, in Spain it may be bought for 37 cents and in France 30 cents, whereas in Italy it drops to 25 cents. The identical bubble bathtub may be shut to five euros in Greece and half the cash in Europe.
Europe has already established a regulatory framework to forestall the at-will switch of income from father or mother to subsidiaries and vice versa (so-called switch pricing).
However this framework, which primarily considerations tax avoidance, doesn’t defend the buyer from excessive costs. Whether or not there may be some European initiatives that show efficient – representatives of the multinationals are categorically against such practices contemplating that they’ll damage competitors and investments) stays to be seen.
Nonetheless, in the entire dialogue the “peculiarities” of Greece as a market that in the end have an effect on costs must also be taken under consideration: We’re a small market by European requirements. The factors of sale as a result of topography of the nation are scattered and this will increase the transport prices. There are not any manufacturing models within the nation, as is the case in Central Europe, whereas competitors doesn’t work in lots of sectors, one thing that the Financial institution of Greece continuously highlights.
Following the publication of the Prime Minister’s letter to Ursula von der Leyen, it’s anticipated that there shall be developments. It’s potential {that a} cycle of contacts between the federal government (even on the highest stage) and representatives of the biggest corporations working within the nation will start. There’s additionally the opportunity of a “gents’s settlement” in order that the reductions attain the shelf with none institutional change. What is for certain is that the waters have been “troubled” and that there shall be developments.
Supply thetoc.gr