Tuesday April 28, 2015 Search
Weather | Athens
14o C
09o 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 frameworks 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 blocs 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)  
Local retailers bracing for yet another Sunday battle
Supermarket sector sees turnover decline and more concentration
Athens tourism should grow unless stability is threatened
Reuters poll: 40 pct chance of a Greek eurozone exit
Erdogan raps new Turkish Cypriot leader
Turkish President Recep Tayyip Erdogan became embroiled with a war of words with the newly elected leader of northern Cyprus on Monday, bluntly telling him he should be careful what says. Mu...
University rectors and mayors stall over cash
As the government scrambles to raise the cash to cover its pending obligations in the coming months, it remained unclear on Monday whether university rectors and local authorities would comp...
Inside News
BASKETBALL
Rethymno defeats in-form AEK on Crete
AGO Rethymnou put an end to a positive string of results for in-form AEK, while PAOK survived a strong challenge by Kolossos Rhodes in Thessaloniki in yet another exciting weekend of basketb...
SOCCER
Panathinaikos beats Xanthi to rise to second
Panathinaikos jumped back up to the second spot of the Super League after its home win over Xanthi on Saturday, as PAOK slumped to third due to its draw at home with PAS Giannina on Sunday. ...
Inside Sports
ANALYSIS
If Greece falls, no one wants their prints on the murder weapon
"We're going bust." "No, you're not." "You're strangling us." "No we're not." "You owe us for World War Two." "We gave already." The game of chicken between Greece and its international cred...
COMMENTARY
Reaching crunch time
Several cabinet ministers and MPs are no longer hiding it: They either openly admit that they are promoting the drachma or they murmur things like, Why not the drachma? Some go even furthe...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Rethymno defeats in-form AEK on Crete
2. Local retailers bracing for yet another Sunday battle
3. Supermarket sector sees turnover decline and more concentration
4. Athens tourism should grow unless stability is threatened
5. Erdogan raps new Turkish Cypriot leader
6. Reuters poll: 40 pct chance of a Greek eurozone exit
more news
Today
This Week
1. Greeces day of reckoning inches closer as debt payments loom
2. Pensions will not be cut, insists social insurance chief
3. Tsipras reshuffles negotiating team after Riga debacle
4. Berlin silent on content of Merkel-Tsipras chat amid claims of 'dramatic' situation
5. Anastasiades, Akinci speak and look towards fresh push in peace talks
6. ECB seen going all the way on QE as economists doubt taper
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. Europe's collision course with Greece
3. Denialism
4. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
5. Leaving the past in the past
6. Varoufakis warns of Grexit contagion
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.