Greek Bureaucracy, Not Just Austerity, Is an Economic Drag

Greece’s economic problems are not solely about the austerity measures, but also about the bureaucracy, which almost caused Stamatiou Plastics, owned by Philippos Stamatiou and his father, to close last year.”

ATHENS — Yannis Stamatiou is one of this country’s many business owners who say Greece’s economic problems are not just about austerity.

Just ask him about the bureaucracy, which the new government has vowed to streamline but is a snarl of rules, decades in the making, that could prove hard to untangle.

Mr. Stamatiou recalls with disgust his trip last summer to a dingy tax office in southwest Athens.

The large plastics factory his family has run for 40 years, which employs 150 workers and is one of the few to survive Greece’s wrenching economic crisis, was poised to get a rare bank loan. But because of a welter of changes to Greece’s tax rules in recent years, the tax official could not produce a critical document the bank needed to seal the deal.

“We came this close to closing the whole company because the government couldn’t give me a piece of paper,” said Mr. Stamatiou, the chief executive of Stamatiou Plastics, lighting a cigarette as he described the anxiety that keeps him awake night after night. “Greece is never going to move forward unless this new government tackles the dysfunction, bureaucracy and uncertainty that we have failed to address since the crisis.”

“If you are doing something innovative in Greece, you face a chaos of uncertainty, instability and risk,” she said.

While Mr. Tspiras has pledged to help start-ups become the source of thousands of new jobs, Ms. Kyriakis is not optimistic.

“They need to realize that change is only going to come through private initiatives,” she said. “We need the economic and political environment to change in a way that will allow this to flourish.”

Her message to Mr. Tsipras, she added, is this: “Just don’t stand in the way.”

Because of an editing error, an earlier version of this article misstated what Mr. Tsipras called for in comments to the Greek Parliament. Mr. Tsipras called for a political solution; he did not call for a summit meeting.

Dimitris Bounias contributed reporting.

The New York Times