Questions and Answers on Greece's disbursement request under NextGenerationEU
Questions and Answers on Greece's disbursement
How did the Commission assess Greece's third payment request?
On 16 May 2023 and on 22 November 2023, Greece submitted to the Commission two requests for the disbursement of over €3.64 billion in total (€1.69 billion in grants and €1.95 billion in loans) under the Recovery and Resilience Facility (RRF). The request was based on the achievement of the 43 milestones and targets (42 milestones and targets for the grants instalment, and 1 target for the loans instalment), as outlined in the Council Implementing Decision approving the plan.
The request for grants covers investments in the areas of electromobility and charging infrastructure for electric vehicles, the launch of projects relating to energy-efficiency enhancing renovations in residential buildings, the digitalisation of public administration, and the uptake of fibre optic infrastructure in buildings. They also include a series of reforms to enhance efficiency in public administration, including through establishing a multi-level governance system that will streamline the allocation of responsibilities between central, regional and local authorities, and to enhance the fight against corruption and smuggling. Further reforms concern addressing weaknesses in urban planning, upskilling for employees and those unemployed, establishing a regulatory authority to enable a more rational and effective waste management system and a more sustainable management of water resources. The reforms also introduce fair and transparent procurement for public urban and regional passenger transportation services and improve the regulatory framework for industrial parks. Lastly, the payment request for loans concerns one target, which required the signature of at least €3.5 billion of RRF loans being signed between financial institutions and companies to support private investment related to the green transition, digitalisation, increasing export capacity, economies of scale and innovation.
With their request, the Greek authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 43 milestones and targets (39 milestones, 4 targets). The Commission has thoroughly assessed this information before endorsing the positive preliminary assessment of the payment request.
What are the next steps?
The Commission has now sent the positive preliminary assessment of Greece's fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC's opinion, to be delivered within a maximum of four weeks, should be taken into account in the Commission's assessment. The Commission will adopt the decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of this decision by the Commission, the disbursement to Greece would take place. The amounts disbursed to the Member States will be published in the Recovery and Resilience Scoreboard. The Commission has also shared its positive preliminary assessment with the European Parliament.
How do the milestones and targets achieved by Greece so far effectively support the green transition?
The green transition is supported by specific investments and reforms, such as the launch of the second and third rounds of energy efficiency enhancing renovations. This will contribute to 105,000 households reducing their primary energy consumption by 30%. Furthermore, the first step in the urban planning reform has been achieved with the award of 30% of all contracts needed for the preparation of the urban plans to implement the reform. This reform aims at addressing long-standing gaps in zoning and land use, which will promote sustainable economic activity and protect the environment. The promotion of electric vehicles (EVs) in Greece is supported through the fulfilment of two targets and one milestone: (i) preparation of local plans by more than 300 municipalities to promote the installation of publicly accessible charging points for EVs; (ii) launch of an investment to install publicly accessible charging points for EVs at strategic urban and suburban locations within cities and at points of interest; and (iii) a feasibility study setting out options for the establishment of an electro-mobility agency that will facilitate the planning and coordination between transport and energy infrastructures as well as regional and local governments. The reform on improving regional passenger bus transportation services across Greece continued with the completion of a legal framework to ensure fair and transparent procurement of bus operators' services. A support programme for the private sector, including the supply-side of e-mobility, was launched. The mandate of the Regulatory Authority for Energy has been extended to cover also the waste and water sectors. The new Regulatory Authority for Waste, Energy and Water is expected to support the transition towards a circular economy based on waste prevention, reuse and recycling, and the enhancement of and to the sustainability of water services in Greece. The loan facility supports private investment related to the green transition.
How do the milestones and targets achieved by Greece so far effectively contribute to the digital transition?
The third payment request includes several measures supporting the digital transition, notably aiming to accelerate the digital transformation of the public sector. Key projects include the award of contracts for the digitisation of archives in key areas such as justice, urban planning, and cadastre, and the development of digital infrastructures in order to increase the interoperability between systems and facilitate the provision of online services. Further, the launch of a number of other digital projects, including strengthening cybersecurity, upgrading the IT equipment of public administrations' One Stop Shops, improving customer relationship management and the redesign and implementation of a new IT system to support the full lifecycle of public procurement are all envisaged under this payment request. Further, one of the measures supporting life-long learning will also contribute to the digital transition by the completion of training programmes improving digital skills. Lastly, under the third payment request a programme was launched to promote the uptake of fibre optic infrastructure in commercial and residential buildings, with a view to ultimately connect 120,000 buildings with such infrastructure by end-2025. Lastly, the loan facility supports private investments related to digitalisation.
How do the milestones and targets achieved by Greece so far contribute to improving Greece's economic and social situation, and its resilience?
The milestones and targets achieved contribute to the economic and social resilience of Greece as they cover investments and reforms in the areas of labour market, skills and social protection, business environment, justice, public administration, and the fight against smuggling. As regards the labour market, skills and social protection, Greece revised and streamlined the legal framework of obligations that exists between the public employment service and jobseekers to support active job search and jobseekers' transition to employment; Greece also completed training programmes for 150 000 unemployed and employed persons including on green, digital and financial literacy skills in the context of life-long learning. In addition, Greece proceeded with the establishment and full operationalisation of 50 mental health units to improve access to healthcare. In addition, the start of the implementation of a GPS monitoring and early warning systems for civil protection, including for fires and floods is envisaged to promote resilience to climate change.
In the area of public administration and justice, a reform establishing a multi-level governance system has been completed that will streamline the allocation of responsibilities among the central, regional and local level, which will reduce the risk of overlaps and enhance accountability across the public administration. Moreover, the implementation of the internal controls law has progressed with the establishment of internal audit units in a wide range of public authorities, while the legal framework facilitating the fight against corruption has been enhanced. In the area of justice, the implementation of the revision of the administrative judicial map was set in motion with the adoption and entry into force of the requisite primary legislation. Furthermore, a regulatory framework aiming to combat smuggling in products subject to excise duties is put in place. Further milestones and targets also aim to improve the resilience of key sectors, for instance through the improvement of the regulatory framework to encourage new investments in industrial parks in order to promote a productive and environmentally-friendly Greek industry, the establishment of a Regulatory Authority to cover the water and waste sectors, the adoption of tax and social security incentives in the cultural sector, and the launch of tenders to promote the deployment of digital technologies in the agricultural sector to promote the trade of Greek food products and control counterfeiting. Lastly, the loan facility provides a stimulus to private investments related to the green transition, digitalisation, increasing export capacity, economies of scale and innovation.
Does the achievement of these milestones and targets contribute to an effective implementation of the Plan?
The milestones and targets under the second payment request constitute significant steps in the implementation of Greece's recovery and resilience plan. In particular, the plan includes measures to support public and private investments with an emphasis on the green and digital transition. Examples include the launch of the second and third rounds of a scheme to finance energy-efficiency enhancing renovations in residential buildings; the launch of support programmes for electric vehicle charging stations to promote electromobility, for industrial units with R&D departments with innovative products and services, and for the installation of the fibre optic infrastructure in residential and commercial buildings; as well as the start of the implementation of a series of investment projects aimed at creating a modern and efficient public administration and justice system. Further, important reforms are also achieved including the first phase of simplification and digitalisation of state processes, the legal framework of a regulatory authority to promote efficient management and use of water resources in Greece, and the award of 30% of contracts needed to complete the urban planning reform to address weaknesses and gaps in zoning and land use with a view to promoting sustainable economic activity and protecting the environment. These milestones lay the ground for the effective implementation of upcoming investments in these areas.
For More Information
Preliminary Assessment of Greece's disbursement request
European Commission endorses positive preliminary assessment of Greece's second payment request
European Commission endorses positive preliminary assessment of Greece's first payment request
Q&A on Greece's first payment request
European Commission endorses positive preliminary assessment of Greece's second payment request
Q&A on Greece's second payment request
Question and Answers on Greece's recovery and resilience plan
Factsheet on Greece's recovery and resilience plan
Proposal for a Council Implementing Decision
Annex to the Proposal for a Council Implementing Decision
Recovery and Resilience Facility
Recovery and Resilience Scoreboard
Recovery and Resilience Facility Regulation
Question and Answers on the Recovery and Resilience Facility
