Greek floriculture has suffered a severe setback in the course of the crisis that has been going on for seven years now. The average florist’s turnover has fallen by 60% since 2008. Only about 1,700 of the 3,500 florists who were in business in 2008 are still in business. The florists who have survived are paying higher taxes, facing restrictions on payments, and having to compete with supermarkets and illegal street vendors.
We no longer hear that much about the Greek crisis in the Netherlands. Even the news has a sell-by date. The refugee crisis followed the imminent Grexit, and the Brexit is currently making headlines every day.
But no news is not always good news. The average Greek has seen their situation worsen since the launch of the international aid programme. However, of the billions that were borrowed, 90% of the money made a U-turn as soon as it reached the Acropolis, ending up at the Northern European banks; not a single penny reached the working Greek, the florist, or the wholesaler. On the contrary, heavy spending cuts and tax increases have been implemented in exchange for loans and have affected them badly.
Extreme poverty
A quarter of a million companies have disappeared since the start of the crisis, including 1,800 florists, putting 850,000 people out of work; 1.6 million Greeks are now living in extreme poverty. This has pushed flowers and plants out of everyday life.
Of the 17 floriculture organisations that were in business before the crisis, there is only one left. Marios Vallianos, President of the Greek Florists Federation, explained, ‘Without a clear plan from our own government, we are falling prey to the mercy of the “beast” that is Europe, which treats us according to its own whims. We have no prospect of improving our economy without our own vision and strategy. Our branch has been stripped bare. Florists are closing their shops, and the ones that remain are losing money every day hoping to hold out until the end of the crisis. Turnover has dropped by 60%, and we have to pay higher taxes on what is left. Due to the lack of enforcement, competition from illegal vendors in streets and at traffic lights has increased; these are mostly illegal foreigners who buy and sell flowers on the black market. And we are also up against supermarkets and chains such as Ikea.’
Roses on Facebook
The Greek florist’s regular customers have vanished. Even the tradition of buying a bouquet on friends’ and family’s name days has been abandoned. ‘They now send a picture of a bouquet of roses via Facebook to their friends for their name day, how tragic,’ said Giorgos Karkalis, importer and wholesaler in Thessaloniki.
He too has seen his turnover shrink, ‘Fewer customers are buying less. My clients mainly survive on sales for special occasions such as weddings and baptisms, but there is also a crisis in that branch. Young couples are no longer getting married or tend to keep their weddings simple. And if they want flowers, the church keeps them in check because luxurious floral arrangements are inappropriately exuberant in times of crisis.’
Exotic and specialty flowers have disappeared completely. Customers are only purchasing a basic assortment. Karkalis is still doing business with all his Dutch suppliers although the volumes have been reduced drastically. ‘I still purchase 70% from the Netherlands while previously that was almost 100%. And I must pay all invoices within a week, which makes sense because we are trading perishable goods. But Dutch exporters had a payment period of a few months for years, so it has been a big transition for many florists.’
Payment restrictions
Since the introduction of capital controls in June 2015, transfer of payments has become a lot more difficult, for trade as well as for florists. It is no longer possible to make international payments through the Internet. Karkalis has to take the invoices to the bank to ask permission for a transfer. His supplier sends him an order of flowers on Friday, and he receives them on Monday. On Wednesday, Karkalis has to take the invoice to the bank for payment. If everything goes according to plan, the money will be deposited in the exporter’s account on Friday, just before the payment deadline. The control procedure for amounts over EUR 10,000 can take up to four days.
VAT increase cannot be passed on
Since 1 June 2016, VAT on flowers has been 24% whereas just over a year ago it was 13%. Most florists have not been able to pass this on to their customers. ‘I would scare away my customers, even the ones in the top-end sector,’ Emi Drizou explained.
She is the owner of Drizos Flowers, one of the best florists in Athens, in the uptown area of Kolonaki, ‘I’m one of the few florists who still order directly from the Netherlands. My supplier only brings two loads to Athens each week; it used to be a lot more. I don’t want to compromise on quality because that’s how I made my name. Quality has become more expensive, though. My costs have gone up, and I can’t pass these on to my customers or let my loyal staff suffer. So I’ve been reducing my personal expenses, and I’m working longer days, even though I’m at an age that I should be slowing down. I’m imprisoned by my own business. I’m just about surviving.
Even though she has lost the entire Greek middle class, the Greek florist Drizou believes that she is providing “social work” through her window displays. ‘Passers-by gaze at the floral beauty, and it makes them happy. It creates joy in these gloomy times. That gives me some satisfaction.’
More local products
Greek florists are open every day from early in the morning until late at night; they don’t have Sunday or evenings off. Konstantinos Flamis from Studio Carafti Florist has had just two customers by seven o’clock at night. The store is located next to the Athen’s Concert Hall; both customers came to buy a few roses for performing musicians. ‘If Greece keeps wasting money on the colossal and over-paid civil service system, nothing is going to change anytime soon. The common man has been hit hard, so we will not see him anymore.’
Flamis explained he is now selling more local flowers and plants than before; local flowers are cheaper and support the regional economy. ‘But availability is not constant, and delivery cannot be guaranteed because of strikes that take place at the drop of a hat.’
President Vallianos recognises that Greek growers are trying to adjust their production to the increased demand for local products. ‘There is a reasonable production of roses, gerberas, carnations, lilies, and other seasonal products. Although the volume is not great, we could fulfil our own needs in the dramatically smaller market. Unfortunately, the floricultural industry is not able to invest in times of crisis; it is impossible to get a loan for a car, and there is no support at all from the government.’
Astrid Zoumpoulis
bloemisterij@hortipoint.nl
Greek florist Emi Drizou believes that she is providing “social work” through her window displays.
