Research by KEPE records a decrease in wages and deposits based on the evolution of prices and the increase in the cost of living in Greece. Young people are in particular trouble.
“The aforementioned constitute an “explosive cocktail” for Greece, which could worsen the country’s position in terms of poverty and social exclusion.” The spotlight may have been focused on the inflation of banking greed in relation to the topical analysis of the Center for Planning and Economic Research (KEPE), but the juice of this analysis lies elsewhere.
In their research, the researcher George Bertsatos and the professor of the Hellenic Mediterranean University George Agiomyrgianakis essentially pushed the button to sound the electric siren of war. A war that concerns society and what it experiences under the boot of Kyriakos Mitsotakis, who insists on impoverishing 70% of Greek households in order to install a South American-style economy within Europe. Let us consider that in the miracle of neoliberalism, Uruguay, the majority of children are malnourished and more than 60% of the population lives in poverty.
The bells are ringing
As Bertsatos and Agiomyrgianakis observe, the average annual gross salary, adjusted for full-time employment per employee, increased in Greece by 3.8% (5.1% in the EU of 27) in 2022 and reached €16,661 (€35,329 in the EU of 27). However, taking into account the general price level, it follows that at constant 2015 prices the average salary decreased by 5.1% in Greece (3.8% in the EU of 27) in 2022. Compared to 2009, when the average annual gross salary was at higher levels in Greece, a nominal cumulative precipitation of 22.85% has occurred in 2022 (in the EU of 27 there is a cumulative increase of 34.40%).
If we take into account the general price level, then the actual reduction at constant 2015 prices amounts to 34.23% in 2022, while in the EU27 there was an increase of 3.33%.
Saving on tartar
On the other hand, the savings rate of Greek households returns in 2022 to negative levels, at -4.03%, as in the years 2012-19 (year period -3.96%), after two consecutive years with a positive sign (1.38% in 2020 and 2.10% in 2021) due to the reduction in consumption resulting from the sanitary confinements for Covid-19. Here comes the last data from the Greeks’ depositions.
According to the latest report of the Deposit and Investment Guarantee Fund (TEKE), only 0.7% of Greek depositors have savings in Greek banks of more than 100,000 euros, while 72.5% of depositors keep deposits of up to 1,000 euros. As stated in the KEPE current affairs analysis, the negative savings rates reveal the shrinking purchasing power of Greek households and that wages are not sufficient to cover basic needs. Especially if we take into account that a quarter (specifically 26.7% in 2022) of the population (8.7% in the EU of 27) spends more than 40% of their disposable income on housing, with the corresponding percentage soaring to 84 .5% (33.1% in EU27) of households with disposable income below 60% of the median income.
Young people are suffocating
Bertsatos and Agiomyrgianakis conclude that a stifling environment has been created regarding the independence of young people in Greece and the creation of their own family. 72.9% of young people aged 18-34 lived with their parents (49.4% in the EU27) in 2021, with the apartment price index (according to the Bank of Greece) on the one hand having risen rapidly recently, on the other hand, it is almost 9.6% short of its historically high prices in 2008. “Combined with the decreasing real wages, this difficulty for young people in our country is highlighted” is the conclusion of the KEPE experts.
The bells are ringing, is anyone listening?
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