Achieving zero deficit by Greece is the key to securing preferential financing from the new European budget. The statement by European Commissioner Piotr Serafin that countries without deficits will enjoy greater access to European funding creates unique opportunities for our country during the 2028-2034 period, according to reporting by Giorgos Aftias in “Apogeumatini”.
Athens’ strengthened negotiating position now allows the utilization of the surplus for social benefits beyond the 3.5 billion euro threshold. Meanwhile, implementing the defense spending exemption clause brings an additional 550 million euros annually.
Economic benefits from early repayment of memorandum obligations
The early repayment of memorandum obligations, ten years ahead of schedule, saves 150 million euros annually, an amount that reaches 1.5 billion euros over the decade. Regardless of global economic developments, the country now has a clear horizon, freed from the pressure of debt obligations.
Liberating new generations from memorandum burdens constitutes a substantial exit from the memorandum era through actions. Simultaneously, the borrowing landscape is improving for ten years with significantly lower interest rates.
Secured financing of 49.2 billion
From the total 2 trillion euros of the new European budget, Greece has already secured financing worth 49.2 billion euros in the first allocation phase. From this amount, 3.5 billion is designated for migration, security and international affairs, while 2.8 billion comes from the social climate fund.
The largest portion of funding, namely 42.9 billion euros, concerns the new unified regional development axis. Through this mechanism, the NSRF programs, Common Agricultural Policy and actions for migration, fisheries and other sectors will be funded.
Strategic achievements and new capabilities
Despite upcoming tough negotiations, Greece benefits multiple ways from the new financing architecture:
• Border funding with additional resources for the Evros Fence and islands
• Doubling of housing funds according to Commissioner Jogerssen’s commitment
• Recovery Fund coverage with Greece in the top five countries
• Inflow of 49 million euros for water supply with budgeted additional 20 million
• Disaster compensation within 12 weeks
• Annual gain of 550 million from the defense spending escape clause until 2028
New funds and simplified structure
The European Commission proposes radical restructuring of the financing model with fund merger and simplification. Instead of 52 scattered programs, 16 programs will operate under four basic pillars: European Social Model, Competitive Europe, Global Europe and European Administration.
The Single European Fund for Economic, Territorial, Social, Agricultural and Maritime Sustainable Prosperity and Security concentrates budget resources of 865 billion euros. The new European Competitiveness Fund unifies 12 programs with 410 billion euros, while the Global Europe fund has 200 billion for external relations.
Goals and demands for the future
The Greek government seeks further reinforcements from Europe’s new financing tool, which will operate with strict conditions and cross-checks. Priorities include regional development reinforcements, more resources for competitiveness and funding for business development.
Special emphasis is placed on supporting infrastructure in health, education and security, as well as funds for agriculture and fisheries. Interventions for electricity and high costs are a priority, with strong pressure for uniform energy prices at European level.
Further strengthening of migration issues, continuous search for housing and welfare state funds, SME financing and support for new business plans complete the demands framework. Finally, covering needs for port reformation, national road funding and support for tourism, insularity and mountainous areas complete the ambitious list of objectives.
