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Greece Receives 3.6 Billion Euros from EU Recovery Fund

Greece recovery fund
The building of the Academy in downtown Athens. Credit: Thomas Wolf, cc3/Wikipedia

Greece received on Friday a 3.6 billion euro ($3.9 billion) payment out of its allotted 30.5 billion from the European Union’s pandemic recovery fund.

The announcement was made by Valdis Dombrovskis, the European Commission’s executive vice president, via video link with Greek Prime Minister Kyriakos Mitsotakis. Dombrovskis had been scheduled to visit Athens, but his trip was canceled after he tested positive for COVID-19.

The European recovery and resilience fund provides vital relief for Greece, which had barely emerged from a deep, decade-long financial crisis when the coronavirus pandemic hit. It provides 12.7 billion euros in loans and 17.8 billion euros in grants through 2026.

“Major infrastructure and modernization works will start in Greece in many sectors with an emphasis on the green economy and the digital transition,” Mitsotakis said.

“We will make good use of these funds, and we will stay on track,” Mitsotakis said, adding that “this government is committed to reforms.”

Recovery fund in Greece focuses on environmental and digital reform

The plan Greece put forward to qualify for the funds centers on environmental and digital reform, employment, and private investment.

On his part, Dombrovskis congratulated Greece and the team that prepared its plan.

“Greece is ready to create a strong economy and to pass to a greener and more innovative economy. The package that will be given to Greece is one of the largest being given to EU member-states,” he said, noting that it contributes to growth and energy independence.

“In this way, bills for households and enterprises in Greece will become lower. Reforms will be supported so that Greece becomes more competitive,” Dombrovskis added.

“With other measures put into effect, Greece should be better placed to diversify its energy supplies and reduce its dependence on Russian hydrocarbons – something all of Europe is now working on.”

Under the multi-billion-euro coronavirus recovery package agreed upon by European Union leaders in 2020, Greece is to receive 19.4 billion euros in grants and 12.7 billion euros in inexpensive loans over the coming years, equal to about 16% of its gross domestic product.

Related: ‘Greece 2.0’: The Plan for Greek Economic Recovery Explained


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