Tuesday, 24 April 2012

Invest in Greece 11: death of the calendar month OR "go directly to prison, do not pass go..."

In the newest of their string of vapidity-induced measures, the Greek government decided on 23rd April 2012, that private sector organisations are obligated to pay Social Security contributions on the month salaries are paid.

Mind you, this applies ONLY to privately owned entities!


This brings corporate cash-flow needs one month forward in a time when cash in Greece is non-existent as the state has siphoned most of it out of the market.
No problem: you can pay late at a cost of +3% -- IF your debt is below the threshold of Euro: 75k. If it is over, you go to jail, directly as in the game.


This means that corporations with long payrolls have to pay social security contributions before they know what sum the actual salary + benefits is; or, they can resort to paying personnel on the basis of a different period say, for work completed 20 days before...
In other words, in matters of remuneration, gone is the calendar month in Greece!


This makes me wonder:
the people governing Greece are writing the book on mismanagement, mistakes, and mess-making. They do all the wrong things, and they do things wrong. 

Are they so unfathomably stupid -- or is this, finally, a case for the ubiquitous hidden agenda?

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