Absorbing funds
Greece’s absorption of funds from the Third Community Support Framework (CSFIII) remains stuck at a disappointing, if not alarming level. Although we are halfway into the seven-year period, Greece has used up just 24 percent of the funds it is entitled to. The above conclusion was deduced by the Cabinet during a session yesterday on the progress of projects funded with money from the CSFIII. The grim outlook prompted Prime Minister Costas Karamanlis to demand a swifter, transparent and efficient administration of the EU package and at the same time underscore that the materialization of projects tied to the CSFIII will, to a large extent, determine the fate of the country and of the newly installed government. The situation is grim. A lot of precious time has been lost and timetables are very tight. National Economy and Finance Minister Giorgos Alogoskoufis emphasized the serious delays in absorbing EU funds, adding that the government will have to make a huge effort not to relinquish the money. There is a lot to be done. New Democracy was right to criticize the now-departed Socialist government for having handled the issue poorly. However the new government must deal with this given situation and do everything to speed up the absorption of EU funds and thereby prove that it can do a better job of administering the inflow of Community funds. The conservative government must first take measures to overhaul the sluggish – and understaffed – bureaucracy which is assigned the task of processing the submitted applications, a bureaucracy which has often been manipulated into promoting the interests of certain politicians and their business cronies. At the same time, Greece must bring the technical study and implementation of projects closer to EU norms and standards, a move that would help accelerate the absorption of EU funds. The authorities must also increase economic assistance to the regions, currently seriously lagging behind in terms of inflow of EU money. The absorption of CSFIII funds by the regions is down to 18 percent of the total they are entitled to, while nationwide absorption is poor but, at least, near 27 percent. The know-how exists and the political will for collecting the money is unquestionable. It remains to be seen whether the New Democracy government will manage to push all the right buttons so as to raise the absorption level. Achieving this goal has so far proved harder than it seems.
