Greece Lays Out Plan to Make Best Use of EU Emergency Funding

The Greek government is looking to put a total of 22.5 billion euros in EU subsidies to immediate use aimed at addressing the impact of Covid-19 and strengthening the economy.

Finance Minister Christos Staikouras said this week that Greece in October will table its priorities to the European Commission so that it can immediately begin to channel the funds allocated through the EU’s new 750-billion-euro Next Generation program.

The European Commission announced the recovery tool on Wednesday aimed at helping member states retain jobs and create growth prospects for their impacted economies.

Prime Minister Kyriakos Mitsotakis welcomed the Commission proposal, noting that it is a great opportunity for both Europe and Greece.

Mitsotakis also underlined that it demonstrates “the confidence that Europe now shows in ‘the Greece of the new era’ and is tangible recognition of the credibility that our country has regained in the last year”.

According to Staikouras, the government’s two-pronged plan will prioritize actions needed to propel Greece’s economic recovery, strengthen its health infrastructure and at the same time support businesses, employees and jobs.

Staikouras went on to tell MEGA TV that the EU subsidy tool may even allow space for the government to reduce taxation.

Greek Finance Minister Christos Staikouras. Photo source: cstaikouras.gr

Over the next period, Greece will be able to tap into a total of 32 billion euros in funding, when adding its access to 9.5 billion euros in loans.

First on the list of priorities, according to Staikouras, is implementing the SURE program (set for June 1) and tapping into European Stability Mechanism (ESM) funds worth up to 2 percent of Greece 2019 GDP.

Staikouras said he expects funds to start rolling by July.