The new investment incentives bill put up for public consultation on Thursday provides for stricter procedures on the concession of subsidies, as well as new categories of subsidized expenses, such as salary costs.
In practice, the new draft law will reflect the current facets of the Greek economy: an economy in deep crisis with a banking system that is particularly cautious when it comes to financing and a Public Investments Program that has shrunk substantially. For instance, the new bill abolishes the previous clause that dictated the deposit of up to 100 percent of the subsidy by the state up-front.
On the other hand, the Economy Ministry is attempting to respond to the demand of the Greek business world for a stable tax system, offering unchanged tax rates for 12 years and a reduction in bureaucratic procedures through the fast-track licensing process as incentives for large investment proposals with a budget of over 20 million euros and creating at least 40 jobs.
The new investment incentives policy further introduces new financing instruments such as the Holdings Funds, while the left-wing touch to the bill is the reduction of the minimum investment budget level, the subsidizing of social cooperative enterprises, and the funding of low environmental impact investment schemes.