Friday October 31, 2014 Search
Weather | Athens
18o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Brussels finds way to cover part of the funding gap

Projects such as highways rely on European Commission funding.

By Evgenia Tzortzi

The funding gap created by the extension of the Greek fiscal streamlining program by two years will be partly covered by cutting some 3 billion euros’ worth of funds from the European Union-subsidized National Strategic Reference Framework.

The loss of funding channeled from Brussels to Athens stems from the increase of EU participation in the subsidy framework to 95 percent, as agreed by the European Commission. This increase is essentially an accounting trick that leads to the reduction of national resources, entailing a cut of the framework’s budget from the current levels of 24.5 billion euros – which is the sum of the European and national participation for the 2007-2013 funding period – to 21.5 billion euros.

The decision signals the second reduction of the framework and means 3 billion euros less of funding available through what is basically the only instrument for growth the country has.

The European Commission appears to have also agreed to greater participation for the next funding period, from 2014 to 2020, a prospect that has been confirmed by European Commissioner for Economic and Monetary Affairs Olli Rehn.

On the other hand, one positive aspect of the Eurogroup agreement last Monday on the Greek program concerns the increase in funds this country will receive over the next funding period. Athens appears to have secured an estimated 14 billion euros of EU funds aimed at growth, against just 11.2 billion that Greece would have received based on the recent proposals by the president of the European Council, Herman van Rompuy.

The increase in EU funds that was apparently achieved at the recent EU summit will be confirmed in the next meeting of the bloc’s heads of state and government in early 2013 and should contribute toward the reduction of the Greek public debt by 2.7 percentage points of gross domestic product by 2020 and by 5.2 percentage points by 2022. Greece reportedly secured this increase in subsidies by citing the prolonged recession and its distance from the EU average.

ekathimerini.com , Sunday December 2, 2012 (20:29)  
Power rates soared 60 pct in six years
NBG chairman sees risks to recovery
Greek consumers shift toward money saving
IMF could offer know-how in backup plan for Greece
A year after GD members shot dead, police have no leads
A year after two members of neofascist Golden Dawn were shot dead outside the party’s offices in Neo Iraklio, north of Athens, police sources admitted that they have no leads to the killers....
No new Manolada trial, court rules
The Supreme Court has decided that four men who stood trial earlier this year for shooting 28 migrant workers at a strawberry farm in Nea Manolada in the Peloponnese should not be retried. S...
Inside News
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
SOCCER
Berg returns to add spice to Panathinaikos´s Cup win
The second round of games for the group stage of the Greek Cup produced plenty of interesting games and results in midweek, but it still lags the upset potential that the knock-out stages of...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
COMMENTARY
Time is running out in Afghanistan
Thirteen years after the attacks on the Twin Towers and NATO's entry into the war in Afghanistan, things remain pretty much unchanged: Political instability and insecurity  reign in the Cent...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Obradovic watches Greens thrash his Fenerbahce
2. Berg returns to add spice to Panathinaikos´s Cup win
3. Power rates soared 60 pct in six years
4. NBG chairman sees risks to recovery
5. Greek consumers shift toward money saving
6. IMF could offer know-how in backup plan for Greece
more news
Today
This Week
1. Greek euro dilemma is back as minister predicts volatility
2. Students hijack university senate meeting
3. Clientelism belongs to the past, says Mitsotakis
4. European stocks tumble as banks decline after Enria’s comments
5. Civil servants to be investigated for transferring money abroad
6. Over 1,500 buildings and vehicles damaged in flash floods
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.