Gorgeous George and Real Estate Investments in Greece

Gorgeous George and Real Estate Investments in Greece

In a recent interview with the national newspaper, To Ethnos Tis Kyriakis, George Papandreou unveiled his vision for the future. The leader of the opposition socialist PASOK party laid out some of the changes that his party will make if he is elected as Prime Minister. The ruling New Democracy party possesses a wafer thin majority in parliament, and the increasing unrest amongst the population means that a snap election could be called at any time. Opinion polls indicate that PASOK has edged ahead of ND, and the consensus opinion suggests that Papandreou could be forming the next Greek government before the year is out.

What has this to do with Real Estate Investments in Greece?

Amongst the usual raft of PASOK policies, promising security for workers and better solutions to the current economic crisis, the opposition leader promised to increase the taxation on larger properties. For those of you thinking of investing in large properties, this extra financial burden could be a potential stumbling block, forcing a major rethink. Papandreou’s rhetoric hints at a crusade against the wealthy, clamping down upon offshore tax evasion, and re-introducing the higher tax rates upon high earners.

Will this affect Real Estate Investments in Greece?

As with most election promises, this particular interview appears to carry little weight, and is based around soundbites rather than substance. Recently, PASOK have fallen into the trap of attacking the government instead of producing something new, and this seems to be an attempt to capitalise upon the recent scandals enveloping the government. PASOK’s social orientated manifesto promises spending schemes to make life better for the average Greek family. Papandreou claims that these will be funded by tax increases targeted against the rich, coupled with a clampdown upon tax evasion.

Like most two party systems, the difference between left and right is not always clear, and both sides are reluctant to move away from the perceived safety of the centre. If PASOK gain power, it is likely that will keep exactly the tired policies as the New Democrats. History shows that they will fiddle around the edges, in an attempt to appear people friendly, whilst supporting the same corruption, nepotism and favouritism that has plagued Greek politics for a long time.

It is almost certain that these soundbite policies will lie forgotten if the position of Prime Minister changes at the next election. Large real estate investments in Greece are unlikely to be affected by any change in government.

George Papandreou picture courtesy of Parti Socialiste

Released under a Creative Commons Licence: