Increased funds from Europe

Gov’t aspires to secure over 5.7 billion euros more from the Recovery and Resilience Facility

Increased funds from Europe

The government aspires to collect an additional 769.2 million euros in grants and €5 billion in loans from the Recovery and Resilience Fund, under REPowerEU, in the near future, by updating the National Recovery and Resilience plans.

Finance Ministry officials are already working on this review and the preparation of the projects that can be financed under REPowerEU, as the relevant regulation is expected to be implemented at the end of February. The planning of the ministry provides for the submission of the revision proposal by the government to emerge after the elections, considering that there will be relative flexibility in relation to the European Commission’s suggestion that the proposals be submitted by the end of April.

The subsidies that will be given by REPowerEU have been agreed, while there is still relative uncertainty regarding the loans, as they will come from the pool of €225 billion of unallocated loans of the Recovery Fund, in which, however, the beneficiaries may show an interest in the near future. Although this is considered rather unlikely for countries such as Germany and France, which borrow from the market at lower interest rates than the Recovery Fund, it is possible for countries such as Spain to claim the €90 billion it is entitled to or part of it, as it may be marginally benefiting from the cost of borrowing, according to competent sources. In that case the pool of €225 billion will be reduced.

The deadline for expressions of interest for the unallocated loans is July 2023, but the Commission has urged member-states to do so by the end of April.

In any case, according to competent sources, the Greek side intends to claim loans of €5 billion, which the Commission reportedly views positively, although without committing. REPowerEU will be a new chapter of the national plan, through which mainly energy transition projects will be financed. At the same time, the national plan will be comprehensively updated so that it has the prospect of being completed on schedule – i.e. by mid-2026. Otherwise, the resources will be lost.

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