Pushing the development of the Greek economy aims to give by government with the new development law and the National Investment Fund.
In particular, the new Development Law was passed in Parliament this week and the National Investment Fund is expected to start operating within the next ten days. With these two interventions, the government sends the signal that the foundation of stronger bases for accelerating growth is a key priority of economic policy, while achieving high primary surpluses to maintain fiscal stability.
In the coming days, the Minister of National Economy and Finance Kyriakos Pierrakakis is expected to appoint the administration of the National Investment Fund, which will operate as a subsidiary of the Treasury. This will start operating the fund aiming to participate with minority rates in investments focusing on strategic infrastructure sectors such as digitization, energy and green transition.
The National Investment Fund will start operating with a capital of € 300 million, and will increase to 1 billion euros in the near future to expand its investment footprint to the Greek economy. The strengthening of his capital will come from additional revenue of the Treasury, which will come from either his existing business entries or from the utilization of the assets he possesses and the ERDA properties.
The new fund, coupled with the large aid provided for by the new Development Law on Business Investment Plans in Strategic Sectors, is expected to be, along with the recovery fund, a powerful driving lever in the development process in the coming period reported by the financial staff and executives.
The new development law provides for more than EUR 1 billion aid for the two-year 2025-2026, prioritizing large investment, processing, social entrepreneurship, the export orientation of the economy and the economic upgrading of border and degraded areas of the country.
In particular, the basis of the new development law establishes 12 aid regimes related to areas such as cutting -edge technologies, tourism, supply chain and agri -food. The approvals of the investment plans submitted by businesses will be approved by rapid procedures within 90 days of submitting the application through a complete digitized evaluation system.
Among other things, the new development provides for the establishment of a guarantee fund with the participation of the Greek State up to EUR 300 million to provide loans of up to € 1 billion from the European Investment Bank, doubling the maximum aid amount to EUR 20 million for investments of individual companies and € 50 million for affiliates. If 10% of the investment has not been completed in two years, it is foreseen by law aid.
As Minister of Development Takis Theodorikakos said in his statements, the targeting of the new development law reflects the needs of the Greek economy, such as increasing productivity, enhancing employment and competitiveness and expanding its export orientation. For the Ministry of Development, a common component of these goals is to create a strong productive base that will help reduce the country’s trade deficit.
Source: RES – EIA