Greece should wind down energy support measures by end of 2023 suggests European Commission

The investment projects contracted under the Recovery and Resilience Fund now number 145, out of a total of approximately 400 investment projects submitted to banks for financing. The loan agreements already signed have a total budget of more than €6 billion, of which the loans from the Recovery Fund comprise about €2.5 billion, some €2.1 billion is loans from banks and €1.5 billion is equity capital from businesses. Athens will immediately submit, possibly on Tuesday, the request for the disbursement of one more tranche, the third, while the procedures to increase the loans by €5 billion and grants by €800 million are progressing.

Greece, along with Italy, continues to experience excessive imbalances but its vulnerabilities appear to be receding due to policy progress, according to fiscal policy recommendations given by the European Commission in the context of the European Semester.

In more detail, the European Commission recommends that Greece:

"Wind down the energy support measures in force by the end of 2023, using the related savings to reduce the government deficit. Should renewed energy price increases necessitate support measures, ensure that these are targeted at protecting vulnerable households and firms, fiscally affordable, and preserve incentives for energy savings.

Ensure prudent fiscal policy, in particular by limiting the nominal increase in nationally financed net primary expenditure in 2024 to not more than 2.6%.

Preserve nationally financed public investment and...

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