The Recovery Fund is ‘rebuilding’ – What will be the changes

By Tasos Dasopoulos

Changes in the use of Community funds amounting to 30.2 billion euros from the Recovery Fund, but also of the 22 billion expected with the NSRF 2021-2027, are planned by the Ministry of Finance, wanting to supplement investments and funds in the total of 9.63 billion. available so far for green investments from the two Community initiatives.

In fact, following the weather trend, the Ministry of Finance is considering financing investments for a green transition with funds from “green” bonds that are expected to start issuing from the second half of 2022.

The additional green investments will start to be considered from next year in view of the mid-term report of the Recovery Fund in 2023. The review will be done for the Member States after they have managed to absorb 70% of the resources allocated to them from grants. Then is the right time to add projects, as the national programs will receive a final overall approval from the Summit Council on how to allocate the remaining 30% of their resources.

But before we get to this point, however, Greece must absorb much of the approximately € 6 billion (38% of total Recovery Fund grants) it has committed, in agreement with the EU on the green transition . The smooth absorption of resources is of great importance as the guarantee even up to the amount of 30% of the subsidies that will be finalized from 2023, will depend on the performance of Greece so far in the implementation of the program.

A similar redesign is being prepared by YPOIK for the funds of the next programming period (2021 -2027), where funds have also been committed for climate change and green transition amounting to 3.6 billion euros. Although for the first time so many resources are available for the development of the green economy, it is estimated that there is room for even more money, with the aim of accelerating the economy’s dependence on fossil fuels.

Through the co-financed projects, mainly of the NSRF, the issues of the “green” bonds will be utilized, which the Ministry of Finance plans to start, perhaps from the second half of next year. The money raised from the markets will cover the national participation in a series of green investments which will be co-financed by the EU.

Investments in climate change

Of the total 9.6 billion that will be allocated for green investments co-financed from Community funds (6.03 billion from the Recovery Fund and 3.6 billion euros from the NSRF), the Ministry of Finance places great emphasis on rapid implementation. and the completion of anti-climate change infrastructure, as well as the completion of civil protection infrastructure for which a total of € 3.3 billion is available. To the 1.5 billion from the Recovery Fund and 730 million euros from the NSRF, another 590 million euros are added, which is a large loan secured by Greece from the EIB for relevant investments. And in this subcategory there can be changes and additions as time pushes for quick results.

Greece, wanting to repair damages and compensate victims, has allocated the amount of 2.1 billion euros since the beginning of 2020 until today. The last money was the 500 million euros allocated for the relief of the fire victims of Evia and the Peloponnese from the catastrophic fires of the summer.