Greece Submits National Pandemic Recovery Plan to the European Union

Greece formally submitted its national recovery plan to the European Union. According to the European Commission, Greece has requested a total of € 30.5 bln in support under the Recovery and Resilience Facility. Of this, € 17.8 bln concerned grants while € 12.7 bln concerned loans.

Brussels, Belgium: 28 April 2020

According to the European Commission:

“The Greek plan is structured around four pillars: green, digital, employment, skills and social cohesion, and private investment and economic and institutional transformation. The plan proposes investments and reforms related to all seven European flagship areas”.

Reuters writes that under the multi-billion-euro coronavirus recovery package agreed by European Union leaders in 2020, Athens will get € 18.2 bln in grants and € 13 bln in cheap loans over the coming years. It is equal to about 16% of Greece’s domestic product.

It is also expected that total funds for investments will be increased to nearly € 60 bln because of getting added leverage from the private sector via equity capital and funds.

According to Reuters, Minister Kyriakos Mitsotakis said last month that:

“Greece’s four-pillar scheme, dubbed “Greece 2.0” would help revive and transform an economy still emerging from the shadow of a decade of the severe financial crisis.”

Reuters writes that around 170 projects have been proposed by the Greek Government, focusing on:

green energy;
digital upgrades, including boosting high-speed internet;
training and social cohesion measures;
road and transport infrastructure.

According to the European Commission:

The RRF is the key instrument at the heart of Next Generation EU, the EU's plan for emerging stronger from the COVID-19 pandemic. It will provide up to €672.5 billion to support investments and reforms (in 2018 prices). This breaks down into grants worth a total of €312.5 billion and €360 billion in loans. The RRF will play a crucial role in helping Europe emerge stronger from the crisis, and securing the green and digital transitions.

The Commission will assess the plans within the next two months based on the eleven criteria set out in the Regulation and translate its content into legally binding acts. This assessment will notably include a review of whether the plans contribute to effectively addressing all or a significant subset of challenges identified in the relevant country-specific recommendations issued in the context of the European Semester. The Commission will also assess whether the plans dedicate at least 37% of expenditure to investments and reforms that support climate objectives, and 20% to the digital transition. Based on a proposal by the Commission, the Council will have as a rule four weeks to adopt the Commission proposal.

The Council's approval of the plan would pave the way for the disbursement of a 13% pre-financing to each Member State. This is subject to the entry into force of the Own Resources Decision, which must first be approved by all Member States.

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Sources:

Recovery and Resilience Facility: Germany and Greece submit official recovery and resilience plans

European Commission. 28 April 2021

Greece formally submits national recovery plan to EU

REUTERS. 27 April 2021

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