Finally. A recent report in Ta Nea reveals how the government has decided to do to solve the problems of the Greek economy. The market has been bled dry from capital, which has been taken abroad. The problem emerged when the economic crisis broke out in 2009 and carried on expanding up to our days.

Millions of Greeks, fearing that the crisis would destroy the economy, moved their deposits away from Greek banks. They transferred their funds to banks outside of Greece. The funds that have been withdrawn from the Greek banks have been estimated. A significant part of those deposits has returned to our country, but a large part still seems to be missing. It has not returned to Greek banks and has not been exported abroad.

The authorities have concluded that a large part of these deposits has been withdrawn from the market and is hidden in homes and offices – similarly to how people used to hide gold coins in cans during the German occupation!

That money will remain hidden either because the people are suspicious of the state regarding the deposits, or because it is tax-free money, which could result in troubles with the courts, should one have to justify where it came from.

Other European countries have faced this problem, for which they found acceptable solutions.

The government’s plan is to grant a tax amnesty so that small and medium-sized account holders can bring back their money and pay a 15% tax. This of course does not cover cases involving money laundering, namely the products of theft, robbery and the depredation of public funds.

This is essentially a provision concerning the small and medium-sized account holders, who will be able to get funds for their businesses.

The benefits for the economy will be profound. At the same time, young couples will be able to afford a home if a generous settlement is implemented and housing loans become interest free.

The Greek people have always dreamed of getting a home. Things will change if hidden funds are released and invested in real estate – construction gives work to more than forty professions, after all…

The Prime Minister Mr. Samaras who is troubled lately about the generous changes in tax provisions, must convince Mrs. Merkel that Greek society is under pressure… Money is needed and without it nothing can happen.

Stavros P. Psycharis

Originally published in the Sunday print edition