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.

greek film festival sydney new

Advertisement

Share:

KEEP UP TO DATE WITH TGH

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

Advertisement

Latest News

Magna Graecia – Part 6: The eternal return

Across this series, we have journeyed through the Greek settlements of southern Italy, tracing how Hellenic civilisation spread.

Kiato: Greece’s seaside town loved by locals and the diaspora

Kiato is a seaside town, about 25 kilometres from Korinthos on the northern coast of the Peloponnese. On the national highway.

Changing your name and surname abroad and in Greece

It is generally known that in Greece to live and work many foreigners have acquired Greek citizenship by naturalisation or by determination.

Action over inertia: Building the future of the Greek diaspora in Australia

It is necessary that we now be led to the need of finding mechanisms that will halt the demographic withering, the social inertia and the cultural thinning.

Costeen Hatzi opens up on life after Nick Kyrgios split

Costeen Hatzi has spent her summer in Europe, enjoying her first overseas girls’ trip, a milestone that carried extra meaning for her.

You May Also Like

Cretan Association of SA brings community together in Battle of Crete commemorative event

With av event held on Saturday, 5 June, the Cretan Association of SA concluded its second week of commemorative events for the Battle of Crete

Greek patient who recovered from COVID-19 tests positive again

A female patient who had apparently recovered from COVID-19 at the end of March, has tested positive to the virus again following her release from hospital.

Kimon Koemtzopoulos to give online lecture on rare Mediterranean monk seal

Marine biologist, Kimon Koemtzopoulos, will present a lecture entitled 'The Mediterranean monk seal, the rarest pinniped in the world.'