If something is taken into account sure in Eurostat circles, it’s the truth that on the finish of 2024 Greece would be the poorest European nation, surpassing even Bulgaria, which in 2023 was ranked final.
In keeping with Eurostat’s statistical show, final yr Greece ranked second from the underside among the many 27 nations of the European Union (EU) by way of the per capita gross home product (GDP) index expressed in buying energy models. Our nation competes with Bulgaria, which of all EU nations (common 100) had the final place in GDP per capita with 64 models, because it follows with 67 models. Latvia, third from the underside, has 71 factors. The primary nation, by far, is Luxembourg with a “rating” of 240 factors and second is Eire with 212.
The causes
How is it doable to offer a rise to the minimal wage, one thing that drags the common wage alongside, and however Greece, as an alternative of rising within the relative rating of Eurostat’s buying energy, descends quickly? How is it doable that after the final enhance within the minimal wage final April, Greece is in eleventh place among the many 26 European nations which have a minimal wage? The reply is straightforward. It’s known as fiscal GDP progress by direct and oblique taxation (VAT and excise taxes).
So far as oblique taxation is anxious, it’s apparent. On condition that the VAT (dominant oblique tax) is calculated as a proportion of the value of a product, so long as the inflation of greed doesn’t subside whereas in any respect ranges of the intermediate provide chain between the producer and the patron revenue dominates, the state will achieve on the expense of impoverished society. The identical goes for earnings. Since there isn’t any indexation of the tax scale commensurate with the will increase in wages and pensions, the state will obtain more cash from the taxpayers, who change into pawns of Mitsotakis’ insurance policies which has got down to impoverish the overwhelming majority (in extra of 80%) of Greek households.
To grasp what he’s making an attempt to realize, let us take a look at the objective declared by the identical, on the finish of 2027 the common gross wage to be 1,500 euros. If it occurs, then the worker of 1,500 euros can pay yearly 2,022 euros to the tax workplace and a pair of,912 to the EFKA. With the common gross wage of 1,251 euros in 2023, the worker can pay 1,302 euros to the tax workplace and a pair of,429 to the EFKA. Due to this fact, it follows that his taxation will enhance by 55.29% and contributions to the EFKA by 19.88%.
The minimal wage by nation in Europe
22 of the 27 EU member states have a nationwide minimal wage. Denmark, Italy, Austria, Finland and Sweden don’t. Concerning the ten candidate and potential candidate nations for accession, eight have a nationwide minimal wage. Bosnia and Herzegovina and Kosovo don’t.
What did he cover?
That is additionally the rationale why Kyriakos Mitsotakis, within the final debate on accuracy within the Parliament, on Might 24, said that the one radical and everlasting reply to cost will increase is everlasting will increase in wages, pensions and advantages to help probably the most susceptible. What he hid was the rise in taxation. That is additionally what the OECD concluded in its newest report, which concluded in a discount of the true wage for 2023 in Greece by 0.7% in comparison with 2022, because the common gross wage elevated by 6.2%, however with subtracting inflation of 4.3%, the rise is lowered to 1.8% and with the tax burden of two.5%, the lower is 0.7%. Nonetheless, to this discount in actual earnings ought to be added the discount in the true wage in 2022 in comparison with 2021, which based on the OECD was measured at 7.4%.
By some means, along with the price of residing that has introduced the disaster to Greek households, it follows that Greece might be repeatedly impoverished and subsequent yr we’ll formally have the stamp of the poorest European nation in buying energy models whereas the Mitsotakis authorities will have a good time the expansion of the GDP .
How is the comparability made?
The buying energy unit (PPU) is a Eurostat assemble primarily based on worth stage variations between European nations and takes into consideration each wages and the price of residing. In keeping with the definition of the European statistical service, a GNP can theoretically purchase the identical quantity of products and providers in each European nation. That is how the comparability of financial indicators between nations is judged. Beneath these statistical knowledge, the MAD eliminates the variations in worth ranges between nations, because it expresses the identical quantity of products and providers in all nations. It’s subsequently the most secure statistical indicator to check the usual of residing of European nations, taking into consideration variations in pay and variations in family prices of residing.
See additionally: Low wages and excessive unemployment: Georgiadis sees the “oxymoron”, not his personal duty
OECD shatters Mitsotakis authorities’s narrative – 7.4% actual wage reduce in 2022 OECD shatters Mitsotakis authorities’s narrative – 7.4% actual wage reduce in 2022
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