Greece anticipates grants of at least 8-10 billion euros from French-German recovery plan

·

The Greek government is expecting a growth boost to the tune of 1.5-2% of gross domestic product for the next three years through the EU Recovery Fund, if it is approved.

The Fund is the biggest post-lockdown weapon aiding the return to growth, with Greece anticipating at least 8-10 billion euros, while the amount due could be far higher.

Sources say Prime Minister, Kyriakos Mitsotakis, has already spoken with Commission President, Ursula von der Leyen, ahead of the submission of the Commission’s proposal on Wednesday, formed on the basis of a French-German agreement for a €500 million fund.

European Commission President, Ursula von der Leyen (left) met with Greek Prime Minister, Kyriakos Mitsotakis (right), earlier this year.

The Greek government is particularly pleased by the fact the assistance, according to the proposal, will be given in the form of grants and not loans that would add an additional burden to Greece’s national debt. Of course this would need to be approved by Austria, which voiced its opposition from the start, but also by Sweden, Denmark, Finland and The Netherlands.

Another plus for Greece is a provision that the assistance will be allocated on the basis of the damage suffered by each country’s economy as a result of the coronavirus.

Given that Brussels said in its spring forecasts that Greece will experience the biggest GDP reduction in the European Union, it should also get the most support, in proportional terms.

There is a question as to whether the impact on national health systems will be factored in, which would be relatively small for Greece. However, Bloomberg reported recently that Greece would definitely be among the EU states to benefit most.

The fund’s resources will allow the government to finance growth-minded policies that have been pushed aside at this point, such as the reduction of social security contributions.

READ MORE: Greek PM outlines new financial aid plan to kick-start the economy.

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Matt Pillios named Kay & Burton’s 2025 Victorian Agent of the Year

Star real estate agent Matt Pillios has reclaimed his place at the top, being named Kay & Burton’s 2025 Victorian Agent of the Year.

Greek astronomer to present at Melbourne seminar on preserving the stars

For millennia, humanity has looked up in awe at the night sky, finding in its silent beauty a profound source of inspiration.

Historic Plaka landmark from iconic Greek film to be restored

The “Kokovikos House,” is named after the fictional couple in Giorgos Tzavellas’ bittersweet classic starring Konstantinou and Kontou.

Melbourne’s Sunday morning strollers walk, talk and keep Greek alive

On a crisp Sunday morning at Merri Creek, a group of walkers from the Sunday Morning Strollers, winds its way along the leafy green trail.

A sweet favourite: Niki Louca’s authentic baklava recipe

Niki Louca from My Greek Kitchen shares her favourite recipe for baklava with The Greek Herald.

You May Also Like

Greek Prime Minister denies breaking lockdown rules during weekend bike ride

Greek Prime Minister, Kyriakos Mitsotakis, has denied violating lockdown restrictions during a mountain bike ride last weekend.

Greek Consulate in Perth one of the first to be digitised in new Greek pilot program

The Greek Consulate in Perth is set to become digital, offering the diaspora an easy way to apply online for documents.

Footballer Nectarios Triantis torn between two nations in an international tug-of-war

Nectarios Triantis contemplates his future allegiance as he returns to the Scottish Premiership playing for Hibernian FC this season.