invest, but in most cases businesses are forced to
partly absorb indirect taxes, in order to preserve
their competitiveness and dispose of their mer-
chandise. This actually means that, unable to col-
lect the extra taxes from consumers, who have
suffered a major drop in purchasing power, busi-
nesses are paying for a large part of tax-push
inflation, thus living off their own flesh.
This situation is compounded by the heavy taxes
imposed on the business themselves, the extraor-
dinary one-off taxes, the uncertain future of the
Greek economy, and the unprecedented lack of liq-
uidity. All the above do not only strangle existing
business, but discourage any investment initiative.
In contrast, last year saw a major increase in the
number of Greek businesses that chose to migrate
to neighbouring countries, mostly in order to enjoy
better tax treatment and reduce labour costs.
The ESEE estimates that more than 1,500 Greek
enterprises transferred their tax base to neigh-
bouring countries in a matter of a few months.
Nonetheless, there are very few retail trade enter-
prises that can afford, or have an interest in,
migrating, while the sector has suffered, from the
Trade with Greece
46
Share of certain sectors in total employement inGreece, 2010, (in '000, Q3)
Source: ELSTAT Labour Force Survey 3rd Quarter 2010
