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Published 11:29 IST, April 30th 2020

Greek waiter and cafe owner on impact of shutdown

Owners of small businesses in Greece have warned of the long-term impacts of the coronavirus lockdown and say they're worried they won't even be able to cover their costs, in spite of government measures aimed at easing financial pressure.

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Owners of small businesses in Greece have warned of the long-term impacts of the coronavirus lockdown and say they're worried they won't even be able to cover their costs, in spite of government measures aimed at easing financial pressure.

In Europe, almost every measure of the economy is in free fall because of the pandemic.

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Figures due to be released on Thursday are expected to show a drop of about 4% in the first three months of the year in the eurozone, and an even steeper hit is projected this quarter.

Unemployment, meanwhile, is expected to rise to about 8%.

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The Greek government, like others in Europe, did put in place measures aimed at helping businesses during the nationwide lockdown.

Companies were allowed to temporarily suspend workers' contracts for March and April and were prohibited from firing staff.

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The workers in question received a stipend of 800 euros (870 US dollars) from the government.

Although they're receiving help employees are worried about the impact on them after lockdown ends.

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George Sakkas, 26, has worked as a waiter in a cafe in a northern Athens suburb for a year and a half.

He was one of the cafe's seven employees to have their contracts suspended.

Sakkas said receiving the stipend has helped, especially as this figure is around the same amount a waiter earns, depending on shifts.

He said he was able to help his household with the funds.

Sakkas expressed concern however that once businesses do start to reopen, enterprises such as cafes and restaurants will have to operate with fewer clients because of social distancing regulations.

He is expecting to get fewer shifts.

His boss, Andreas Ghikas, says the social distancing regulations will also result in less business and a loss of income.

Ghikas, 47, was content that his business qualified for the 800-euro stipend from the government to help support his workers.

But he complained that that the government should have allowed both him and his brother to get the stipend separately, instead of having to share the one sum for the business they have shared for 15 years.

He also said the government should have ensured companies forced to shut would be exempt from paying the full amount of utility bills and of other standing charges.

Ghikas said the timing of the closure was particularly painful as he expected the usual annual boost of business ahead of the Easter holiday.

 

11:29 IST, April 30th 2020