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Greece to receive €33.4bn in grants and loans from EU aid package UPD

Greek Prime Minister Kyriakos Mitsotakis welcomed the European Commission ‘s proposal for a 750 billion euro aid package to fight the economic repercussions of the Covid-19 pandemic in Europe, announced on Wednesday.

In a tweet, Mitsotakis said, “We welcome the bold proposal of the European Commission for a package of 750 billion euros, mainly in the form of grants through a common debt issuance. The bar has been set high. It is now the European Council’s turn to rise to the occasion.”

According to calculations, Greece is to receive 22.5 billion euros in grants and 9.5 billion in loans.

the EU Commission explained that Greece is expected to have a net allocation of 33.4 billion euros from a European recovery fund, while the country’s contribution to the fund will total 10.1 billion euros for a gross receipt of 43.5 billion euros, according to a plan presented by the European Commission on Wednesday.

In an analysis over the recovery needs of Europe, the Commission recommended that Greece should be given a larger percentage of the Recovery Fund compared with the country’s net contribution to the EU’s GDP, citing that the country’s GDP will contract more than the average EU GDP decline this year, and based on the fact that the country’s per capita income is lower than the European average and the country has a very high public debt.

The accumulated sum of 43.5 billion euros represents a 5.8 pct of the 750-billion-euros of the Recovery Fund, while the country’s contribution to the EU’s GDP is 1.3 pct.

The next allocation of 33.4 billion euros represents a 17.8 pct of the Greek GDP, with only Croatia and Bulgaria being recommended to have a bigger net benefit (22.4 pct and 19.3 pct, respectively), although at lower sums (12.1 billion and 11.7 billion euros, respectively).

Deputy Tourism Minister, Manos Konsolas, said that the grants and loans will go to real economy and tourism.

When will the money come?

Speaking to Alpha TV, Finance Minister, Christos Staikouras, said the EU decisions on the matter are expected to be taken in summertime. He xpressed the hope that the money will be released in the second half of 2020. He added that he had read that the best scenario was speaking to 1.1.2021.

Staikouras said that the government support to Greek economy and tourism will come from other EU program like SURE and thus in the next time.

Presenting the plan, European Commission President Ursula von der Leyen said, “The recovery plan turns the immense challenge we face into an opportunity, not only by supporting the recovery but also by investing in our future: the European Green Deal and digitalization will boost jobs and growth, the resilience of our societies and the health of our environment. This is Europe’s moment. Our willingness to act must live up to the challenges we are all facing. With Next Generation EU we are providing an ambitious answer.”

The Commission’s proposal for recovery includes a new recovery instrument, the Next Generation EU, “to ensure the recovery is sustainable, even, inclusive and fair for all member states,” she said.The Commission has also unveiled its adjusted Work Programme for 2020, which will prioritise the actions needed to propel Europe’s recovery and resilience. “Next Generation EU of 750 billion euros as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the total financial firepower of the EU budget to 1.85 trillion euros,” the commissioner added.

However:

 

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One comment

  1. Hurraaaayyyy, more debt for Greece. What generous help from EU.