EU funds at risk due to payment halt by the state
Greece runs the immediate risk of missing out on 1 billion euros worth of European Union subsidies this year from the previous support framework, which expires on December 31, as a payment freeze by the state has blocked the proper implementation of projects that will have to finish by the end of the year.
Although the subsidy absorption rate had improved considerably in recent years, reaching a level of 85 percent, failure to stick to that rate this year – the last of the extended 2007-2013 program – would hamper Greece’s capacity to utilize the EU funds.
At greater risk are not only the highway and environmental projects but also investment plans that are being implemented by the private sector. Economic uncertainty has suspended any resolve for investing, resulting in an extensive inability to absorb the funds Brussels has set aside for Greece.
