EU mulling new funding tool

BRUSSELS – Greece is set to benefit from the creation of a new subsidy mechanism, in parallel with the EU?s Community Support Frameworks, that the European Commission and the German government are planning for eurozone countries in a streamlining program.

Reliable sources have told Kathimerini that negotiations on the European Union?s new budget include a proposal for additional funding. According to the proposal, states wishing to implement projects included in the bailout agreements they have signed would be able to borrow the necessary funds with the guarantee of the whole of the eurozone, probably through the support mechanisms.

This funding will not concern public works, as in the case of Community Support Frameworks, but projects that concern the structural side of the agreements, such as containing bureaucracy, modernizing public administration, reforming tax systems or liberalizing labor markets. Sources cited examples such as training for the unemployed and reorganizing state agencies.

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