ATHENS, Greece, Oct. 22 (UPI) -- Small businesses in Greece, both retailers and producers, have seen revenues plummet since the country agreed to a $154 billion international bailout.
The bailout lent to Greece by the European Union and the International Monetary Fund came with mandates the government pass austerity budget measures, which meant higher taxes and cuts in the pension system and civil service jobs, The New York Times reported Friday.
Manufactures are struggling as orders have dropped. The National Confederation of Greek Commerce said retailers are also in a bind. For clothing stores, sales are down an average of 35 percent, the confederation said.
The business group said one in five small businesses -- those with up to 10 employees -- was expected to close by the end of 2011. Currently, in Athens, 25 percent of the shops on some streets are boarded up, the Times said.
The confederation said a year ago 32,758 new businesses opened up; this year it was 27,495, almost equal to the number that closed, which was 27,574.
The government has begun to turn its attention to small companies, which employ about 2 million workers out of a total workforce of 5 million. It has promised to forward $6.9 billion in EU subsidies on to small companies. Prime Minister George Papandreou said last month he would rush a retained earnings tax cut into place next year, instead of 2014, as originally planned.
