Greece Boosts Economy with European Funds Amidst Pandemic and Financial Crisis

Summary

  • Greece has overcome its former financial hurdles, efficiently drawing on European funds and slashing red tape to accelerate economic growth.
  • The country is entitled to a total of 36 billion euros in grants and loans from the post-pandemic fund until 2027, which is expected to trigger a total investment of 60 billion euros in medium-sized enterprises, digital technology, green energy, and infrastructure.
  • Deputy Finance Minister Nikos Papathanasis has stated that Athens will submit requests for an additional 3.6 billion euros from the Recovery Fund by September, aiding in achieving the set economic growth target for the year of 2.9%.
  • Greece has faced the climate-driven calamities head-on by doubling the annual state funding for natural disasters to 600 million euros.
  • It also plans on utilizing more than 3.5 billion euros of European and state funds to repair the damage caused by the September disaster and bolster its infrastructure to withstand the impacts of climate change.

Advancements in Greece’s Economy Due to European Involvement

Greece has turned the tables in their favour, even after the financial crisis of 2010-2018 and the aftermath of the COVID-19 pandemic. It achieved this by increasing its absorption of European funds, curbing its bureaucracy and enabling its economy to gain momentum.

European Grants and Loans for Greece

Eligible for a total of 36 billion euros in grants and loans from the post-pandemic fund till 2027, Greece is projected to trigger a total investment of 60 billion euros. This significant investment will be channelled into sectors like medium-sized companies, green energy, digital upgrade, and infrastructure.

Greece’s Economic Targets and Public Investments

The Deputy Finance Minister of Athens, Nikos Papathanasis, announced on Monday that Athens would apply for an additional 3.6 billion euro from the Recovery Fund by September. These extra funds will contribute to Greece achieving its economic growth target of 2.9% for the current year. Public investments would provide more than 60% of the expected growth, triggering optimistic expectations of new job creation.

Greece’s Approach to Climate-Driven Disasters

The country is not just addressing its economic growth but also tackling climate-driven disasters. Financial allotment for natural disasters has been doubled to 600 million euros following substantial flooding events that inflicted damage upon the Thessaly region.

Anticipation for the Future

Papathanasis further revealed longer-term plans to utilize over 3.5 billion euros from European and state funds. This money is aimed at repairing the damage caused by the September disaster and ensuring Greece’s infrastructure becomes robust enough to resist climate change impacts in the ensuing years.

In terms of forex trading, the economic progression of Greece and its efficient utilization of the European funds could have potential implications on the euro’s performance.

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