Greece Receives €4 Billion in Pre-Financing From the European Commission

Greece has received €4 billion in pre-financing from the European Commission, which is equivalent to 13% of the country’s grant and loan allocation under the Recovery and Resilience Facility (RRF). Greece is one of the first countries to benefit from the RRF’s pre-financing payments. The pre-financing will assist in the implementation of Greece’s recovery and resilience plan’s critical investment and reform measures.

Further disbursements will be authorized by the Commission if the investments and changes indicated in Greece’s recovery and resilience plan are implemented. Over the course of the plan’s lifespan, the country is expected to receive €30.5 billion in total (€17.8 billion in grants and €12.7 billion in loans).

The payment comes on the heels of the successful launch of NextGenerationEU’s first borrowing operations. The Commission plans to raise up to €80 billion in long-term funding by the end of the year, which will be supplemented by short-term EU-Bills, to cover the first planned disbursements to member states under NextGenerationEU.

The RRF, which is part of NextGenerationEU, will contribute €723.8 billion (in current prices) to member states to promote investments and reforms. The Greek plan is part of the EU’s extraordinary response to the COVID-19 issue, which includes supporting green and digital transformations, as well as boosting resilience and cohesiveness in our societies.

Securing the green transition: €645 million will be spent to fund the interconnection with the Cyclades Islands, which will increase the potential for renewable energy sources and storage capacity.

Supporting the digital transition: €375 million in measures to increase digital technology adoption, particularly among small and medium-sized businesses, as well as purchases of digital services and new technology cash registers.

Strengthening economic and social resilience: €740 million will be invested in active labor market strategies to boost full-time employment, including for long-term unemployed and disadvantaged people. A further €627 million will be spent on enhancing and digitizing government services, as well as digitizing the judicial system and speeding up legal court proceedings, and modernizing and simplifying the tax code

In Greece, the RRF funds initiatives and changes that are projected to have a profound impact on the country’s economy and society.

Photo Credit: https://www.eureporter.co/politics/european-commission/2021/08/10/nextgenerationeu-european-commission-disburses-e4-billion-in-pre-financing-to-greece/