In the near future, the young man is expected to be voted on Parliament Development lawwho aspires to enhance and adjust the Greek economy to modern needs.
As the Minister of Development has announced, Takis Theodorikakos, the submission of applications with the new Development Law, “will be mainly in June and perhaps we are over the last one in May and of course mid July. Evaluations of the new development law will take place in September and October and November. ” He recently underlined the need to support manufacturing and industry because they are a powerful and solid industry of the Greek economy and must grow.
At the same time, he stressed that there is a particular emphasis on strengthening the border areas, in the region, both national and for demographic reasons and for reasons for the whole country. He also said that small and medium -sized enterprises should be supported for both innovation and extroversion.
The purpose of the bill is to adapt to the new needs of the Greek economythrough the introduction of new enhancement regimes and simplifying procedures for giving aid and incentives.
It is recalled that the draft law of the Ministry of Development that reshapes the framework of state aid, expands the subsidy to medium -sized enterprises and introduces new procedures for faster licensing and investment funding is in public electronic consultation until May 2, 2025.
The draft law entitled: “Sustainable Development, Productive Transformation of the Greek Economy – Amendment of Provisions of Development Law 4887/2022 – Development Law: Greece Strong Development – and Other Provisions” introduces a series of interventions, with the main creation of new strengthening regimes, the reinforcement of the reinforcement, Evaluation and control mechanisms of investment plans.
According to the draft law, the basis of businesses that can be reinforced and expanded, for the first time, is expanded The ability to subsidize also the middle businesses.
Particular emphasis is placed on boosting investment in areas with serious economic and demographic problems, such as border regional units, areas with GDP per capita below 70% of the national average, or areas facing population shrinkage due to adverse conditions, as well as natural conditions.
New development law enhancement regimes
Significant change comes with the new draft law in the number and form of the aid regimes. Unlike the current Development Law 4887/2022, which included thirteen regimes, the new framework provides for twelve state aid regimes. The difference lies in the abolition of aid 5 entitled “Research and Applied Innovation”, whose actions are now incorporated into the wider “Modern Technologies” regime, former “digital and technological transformation”.
The twelve regimes of the new development framework are:
- Modern technologies
- Green Transition – Environmental Business Upgrade
- Social Entrepreneurship and Crafts
- Special Aid Areas
- Agri -food – primary production and processing of agricultural products – fishing and aquaculture
- Processing – Supply Chain
- Business extroversion
- Strengthening tourist investment
- Alternative forms of tourism
- Large investment
- European chains
- Entrepreneurship 360 °
In addition, the response times of the public bodies are also amended, with the aim of condemning and accelerating approval procedures in relation to the previous law.
Eligible investments are:
- The creation of a new installation,
- The expansion of productive capacity,
- The diversification of existing installation in new products or services,
- The fundamental change in the production process or to provide services
In addition, it is eligible to obtain assets from an installation that has been closed or was going to close if it was not purchased. However, it is noted that the acquisition of business shares is not subsidized as it is not counted as an initial investment.
It is particularly important that the new law expands the basis of businesses that can be enhanced and medium -sized enterprises are subsidized. Until recently, this incentive was accessible exclusively by small businesses. Now, only the large ones are excluded, but still have access to other basic motives, such as:
- the tax exemption,
- the lease subsidy,
- and the cost of the cost of employment created.
The above incentives remain available in small and medium -sized enterprises.
It is noted that the new “Social Entrepreneurship and Crafts” regime introduces the incentive to fund business risk, which includes interest rates subsidy for high risk loans or insurance costs.
Similar funding opportunities are provided in all regimes of the new law, where both SMEs and large companies can receive loans with the guarantee or support of the Greek State. SMEs can resort to the financial tools of the Hellenic Development Bank (EAT), while large companies have the opportunity to lend through the European Investment Bank (EIB).
Five basic types of aid
The new development law provides five basic types of aid:
- Tax exemption, exempting from paying income tax on pre -tax profits.
- The grant, that is, the public support by the State to cover part of the eligible expenses.
- The leasing subsidy, which may take up to seven years from the completion of the investment.
- The payroll costs for new jobs created.
- And funding for business risk, with interest rates or reduced securing loans.
In addition, there is a motivation for rapid licensing, which is specifically applied to large investment and “Special Aid Areas”. The relevant licenses should be issued within two months, while the approval of environmental conditions within three.
As the Minister has pointed out, “for the first time in the new Development Law there is a separate regime totaling € 150 million for at least € 2m investment plans to be developed in the border counties. This is primarily concerned with our Macedonia and Thrace we support with actions.
The other two regimes, which will also be funded with € 150 million each, relate to manufacturing and large investments of more than € 15 million each. In total in 2025 and 2026, € 900 million will be given to tax exemptions and grants, with priority in the border and the poorest areas of our country. We give a great deal of emphasis on the reduction of social and regional inequalities and of course the resolution of demographics which is a national issue of highest priority. “
In addition, businesses subject to the “large investment” regime, it is possible to finance either by short -term loans against the grant or by long -term loans to implement the investment. Funding may come from the Guarantee Fund or other financial tools of the Hellenic Development Bank.
At the same time, both small and medium -sized and large companies under the same regime can apply for funding from the European Investment Bank, with the guarantee of the Greek State.
The highest aid amounts are set as follows: up to EUR 20 million for individual companies and up to EUR 50 million for groups of connected or affiliated undertakings. These limits are increased by 50% when the aid is provided through tax exemption.
SMEs
For small and medium -sized enterprises, the bill provides for investment reinforcement in sectors with high growth and environmental footprint. Includes costs for consulting services, innovation (technological, procedural, organizational), energy efficiency measures – other than interventions in buildings – as well as for efficient use of natural resources and the transition to the circular economy.
Also eligible are the investments for the production and co -production of renewable energy (RES) energy, the consolidation of environmental damage and the restoration of natural habitats and ecosystems, to protect or restore biodiversity, as well as the implementation of nature -based solutions for adaptation.
The bill also includes forecasts for vocational training, for the installation of efficient district and telecommunication systems, but also for the recruitment of workers who are disadvantaged or are people with disabilities.
Finally, it is recalled that the Minister’s statement to RES-EIA on the recovery of approximately € 500 million from unexplained projects of previous development laws. As he has pointed out: “The process of recovering about € 500 million is consistent with consistently, transparency and determination. These are advances from 1,410 investment plans of 2004 and 2011 development laws, which had received money but were never completed. The General Secretariat for Private Investment has already completed an extensive control, and the process of recovering these money has begun.
We continue the investigation for the 2016 Development Law. The completion of the process is a top priority for us. The money that will be refunded, either directly directed to development purposes, enhancing areas such as processing, or will be allocated through the State Treasury for social purposes.
It is a matter of moral and political responsibility towards our fellow citizens not to let a single euro go lost. We follow the doctrine of absolute transparency and accountability, because the money of Greek taxpayers is sacred and must be exploited in a way that serves the public interest and the development of the country. “