Investment and reform are the main ingredients of the National Recovery and Resilience Plan (NRRP) of Greece.
The country is entitled to €32 billion in grants and cheap loans.
Investments to cover the investment, output and employment gap in Greece.
Reforms to make sure that this time the money flowing in the country will be directed to fruitful projects and will not be wasted on reproducing a productive model that has been proven inadequate, to say the least.
Following the guidelines laid out by the European Commission, the Greek NRRP is built on four pillars:
- The Green pillar, with reforms and investments that promote the Green Transition of the economy. Among them, projects such as a massive program of energy efficiency renovation for residential, businesses and public sector buildings as well as the interconnection for the Greek islands.
- The Digital pillar puts forward digital transition projects, such as the development of 5G network corridors in all the Greek motorways, as well as the digital transformation of SMEs.
- The Employment, Skills and Social Cohesion pillar. It ranges from reforms and investments to increase the capacity and resilience of the health system to reforms at all levels of education, integrating new skills, new methodologies, evaluation of the system, autonomy and relevance/extroversion towards the local and international community and economy and a major reform of the contents and delivery of the skilling, reskilling and upskilling programs offered by the public employment service (OAED).
- The Private Investment and Economic & Institutional Transformation pillar. It will advance projects, such as the development of highquality infrastructure and transport systems that are multimodal, climate-resilient, smart and sustainable. It includes investments in axes of the Trans-European road network, such as the north part of the E-65 and the North Road Axis of Crete. Central to the philosophy of the Greek NRRP is the close collaboration of the public and the private sector.
The mobilization of private sector resources will be pursued through:
- the extensive employment of Public Private Partnerships, as a tool for implementing public investments,
- the use of Energy Service Companies to implement energy efficiency projects in the public sector, and
- the use of co-financing, by employing financial instruments to leverage additional private resources in the implementation of eligible private investments. The financial incentives for private investments will target projects promoting higher exports.
You can read more about the National Recovery and Resilience Plan (NRRP) of Greece, its priorities, the planned green transition and the promised reform of the healthcare system in the in the January/February 2021 issue of Greek Business File, available here