Article of Mr. Stavros Nikiforakis in “Serbian Strategy Review”
The effects of Recovery and Resilience Facility in the Greek Economy
So what is the Recovery and Resilience Facility (RRF) and how much will it affect the Greek economy in the long term? What is the total amount of financing that concerns the Greek economy? How is it distributed and over what period of time?
As is known, the pandemic significantly and substantially affected the economies of the European Union. In this context, the Recovery and Resilience Fund was established, with the aim of helping the economies in the long term, mitigating the serious impacts, making them more resilient and providing opportunities for green and digital development with a transition to new technological challenges.
The total amount of financing for all the countries of the European Union, amounts to 723 billion euros and is distributed respectively, in grants 338 billion and in loans 385 billion. The purpose of these financings in general, but also for our country in particular, is to promote of reforms and investments after the pandemic crisis.
The aim of Brussels is, with the resources of this Fund, which will be distributed to each EU member country, to strengthen each domestic economy, with proper and controlled utilization in its specific sectors.
These resources for our country amount to 31.1 billion euros and will be given in the form of subsidies and loans. Of this total amount. 18.4 billion pertains to subsidies. In this way and with these resources, significant benefits will be created for the Greek economy, in the long term, and will help the development of healthy entrepreneurship.
The private sector subsidies are gradually published and cover sectors of the economy such as digital transformation, energy storage facilities, green industry and many other sectors.
The remaining 12.7 billion refers to loans, with the help of which it is planned to make investments, with the support and exclusive financing of the Banking system and in any case, within the framework that the EU has determined for the TAA
The low-interest loans of 12.7 billion can be given, among others, to finance investments in hotel units, a fact that is of immediate interest to several business hoteliers of our island, since they ensure a fixed low-interest rate, starting from 0.35% with a grace period of up to 3 years and a loan period of up to 15 years.
The funding of the Facility concerns the period from the beginning of the pandemic. February 2020. although it came into force in February 2021 until December 2026. It has set, therefore, a narrow margin for the implementation of the reforms and investments that have been planned.
For Greece, the reforms and investments that are planned are mainly aimed at new jobs, the improvement of the Public Administration with further modernization of the digital transformation, the correct depiction of the systems of the Public Tax Authority. insurance funds and health care but and the principles of Justice.
This improvement, in order to be effective. requires the continuous training of public and private employees with the ultimate goal of adapting to a modern way of working and digital transformation.
The programs also place particular emphasis on investments in green development, environmental protection and energy upgrading in renewable energy sources, installation of electricity charging points, upgrading means of transport, construction or modernization of an existing production line and in many other sectors of the economy.
It is time for the healthy business forces of the country to buckle up and take part in the effort, together with the government and in the defined European framework. To rearrange old attitudes and cooperate, in the heat of the Pandemic with look to the Future.
And of Europe and Greece and our Crete. Mainly, however of our children.
Stavros G. Nikiforakis
Managing Partner & Chairman of the Board APEX Certified Auditors