Market keen to see ‘Greece 2.0’
The local market views the government blueprint (“Greece 2.0”) for the Next Generation EU funds as a unique opportunity to restart the economy as it lays the groundwork for the reform of its production model. As one source told Kathimerini, the market “awaits the specifics of the program’s instruments with great interest as they are seen unleashing critical new investments.”
The volume and direction of the programs (major projects, new technologies) and mainly the financing terms regarding the loans part of the blueprint constitute a major opportunity for large enterprises (in the fields of energy, construction, IT and manufacturing) and a rare challenge for smaller ones that need to rapidly adjust to stay in the game.
The front-heavy actualization of the program constitutes another great challenge, say officials from companies involved in construction and energy, which thanks to their involvement with the transition to a green economy will obtain the bulk of the resources from the 30.91-billion-euro package from Brussels.
The country’s recovery will depend on the proper and timely implementation of the program: “The strengthening of investments, combined with significant reform, the digital transformation of the state and the improvement of the investment environment, can lead to an increase in employment and exports and a considerable boost to the gross domestic product,” comments an official at a company involved in energy transition projects abroad.
Market sources note that the program is also aimed at improving competitiveness, offering incentives for the promotion of export-minded private investments that will aid in the transformation of the economy. They also perceive the “digital transformation of enterprises and the encouragement of enlargement through mergers, acquisitions and cooperation for firms to match international competition” as a substantial and quality priority of the program.
For example, the aluminium sector expects the program to lead to a demand rebound: Aluminium Association of Greece head Giorgos Mentzelopoulos says the recovery blueprint will assist the sector in general through the green priorities for the energy upgrade of building stock and through actions concerning energy storage and private investments.