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

‘Bad habits’ turned good: Greece’s massive Op Shop and its charismatic founder

'Paliosinitheies' (Bad Habits in English) is Greece's largest ‘Opportunity’ or ‘Op Shop’ - as we Aussies call it.

Father Dimitri Tsakas’ bold take on papal diplomacy in ‘Between Altars and Alliances’

Father Dimitri Tsakas, a Greek Orthodox priest, offers a rich, expansive, and intellectually sophisticated exploration of Pope Francis' diplomatic legacy.

Artificial Intelligence boosts wildfire detection in Cyprus

As Cyprus faces another intense summer with growing wildfire risks, the Municipality of Paralimni-Deryneia is adopting AI.

I understand Greek but struggle to speak it – how can I overcome that barrier

Understanding but not speaking is a common experience of heritage language or background language communities. 

Cyprus: Historical and political responsibilities of a national tragedy (Part 2)

In the previous article, we mentioned that with the Annan Plan we would now have a Federation of two states.

You May Also Like

New Dead Sea scrolls with Greek text found in desert cave in Israel

Israeli archaeologists on Tuesday announced the discovery of dozens of new Dead Sea scroll fragments bearing a biblical text.

Cable car plan sparks controversy in historic Monemvasia

A proposed cable car in the medieval town of Monemvasia, southern Greece, has sparked fierce opposition from residents and experts

Dr James Giallussi helps convey COVID-19 messages to Sydney’s Greek community

Dr James Giallussi, who owns a practice in Rosebery, is doing his part for Sydney's Greek community by sharing the COVID messages in Greek.