Greece Updates Rules to Accelerate Absorption of EU Funding

Greek Economy & Finance Minister Kostis Hatzidakis. Photo source: Economy Ministry

Greek Economy & Finance Minister Kostis Hatzidakis said this week that rules would be revised to accelerate the absorption of EU funding.

The changes concern a bill covering the country’s 12.2-billion-euro Public Investment Development Program and aim to allow dozens of projects funded by national or EU resources to move forward.

Additionally, Hatzidakis told a press conference this week that changes include better scheduling of works, the timely securement of funding, and the further reduction of red tape.

For the first time, the ministry will be setting up a mechanism that will ensure the funded projects are managed effectively and maintained, and a separate project financing account to cover natural disasters.

“Since 2019, Greece has achieved historically high performance in the increase of investments, while remaining in the highest positions in the EU in terms of the absorption of European funds,” said Hatzidakis.

“A first step to ensuring the full absorption of funds and EU – national resources integration is handing over responsibility of the country’s Public Investment Development Program to the National Economy Ministry which can ensure better coordination between planning and implementation and the state budget as a whole,” the minister said.

According to ministry data: Greece reported the highest percentage increase in investment activity in the EU in the 2019-2023 period at a rate of 41.3 percent compared to the eurozone average of 1 percent while the EU’s NSRF 2014-2020 program has reached a 97 percent absorption rate.

Among the 27 EU states, Greece secured the largest share of funding from both NSRF 2021-2027 and its own recovery fund in relation to its population. Available funds account for 19.66 percent of GDP, the highest percentage in the EU.

Lastly, Greece has so far absorbed 41.4 percent of funds compared to the EU average of 29.4 percent ranking sixth among the 27 nations and has achieved 23 percent of milestones associated with RRF financing compared to 17 percent in the rest of the EU.