The draft of the Greek National Recovery and Resilience Plan (RRP) has been submitted to the European Commission.

It is a plan based on two parallel lines of action: investment and reform.

The ultimate goal is to cover the investment, output and employment gap in Greece.

To this end the mobilization of private sector resources is deemed essential.

Ιn his speech at the Economist event “ EU Recovery and resilience fund for Greece: European Green Deal – Digital transformation – Infrastructure”, the Minister of Finances, Chirstos Staikouras, outlined the schemes through which the private sector will be involved in the implementation of the Recovery and Resilience Plan.

There will be three different strategies:

  • 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 Greek RRP comprises of four pillars:

  1. The Green pillar, with reforms and investments that promote the Green Transition of the economy. It includes:
  • a massive program of energy efficiency renovation for residential buildings, businesses and public sector buildings and infrastructure.
  • the interconnection for the Greek islands using Renewable Energy Sources
  1. 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
  1. The Employment, skills and social cohesion pillar embraces reforms and investments that –among others – increase the capacity and resilience of the health system. For example:
  • a comprehensive prevention system
  • the upgrade of primary care services and
  • the introduction of therapeutic protocols in the e-prescription system, along with Digital Patient Health Records.

Also, this pillar includes reforms that promote the autonomy, research and innovation in Universities

  1. The Private investment and economic & institutional transformation pillar will advance projects, such as the development of high-quality 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.
  • projects that support the fight against tax-evasion and smuggling, by advancing the employment of Artificial Intelligence and other digital tools that facilitate effective controlling.

Greece is entitled to 32 billion euros in grants and loans from the COVID-19 European Recovery Fund.

70% of grants are expected to be allocated in 2021-22 based on the allocation key proposed by the European Commission.

The Greek government keeps saying this is an historic opportunity for the country.

An “opportunity not only to recover, but to enter in a strong and sustainable upward trajectory” Staikouras said at the Economist event.

This year, the Greek economy is expected to suffer one of the deepest falls in economic activity in Europe, mainly because of its high exposure to tourism.