Investment funding is set to drop to €10.6 billion in 2027, as resources from the Recovery and Resilience Facility (RRF) exit the financing map — funds that have served as a primary driver of the Greek economy in recent years. The next chapter for the Public Investment Program is now taking shape without the €7.2 billion in RRF resources that had been incorporated into the 2026 budget, with the government shifting its focus toward EU co-financed programs, national resources, and new European Union financing instruments.
The direction of this new era is outlined in the circular issued by the Ministry of National Economy and Finance for the preparation of the 2027 Public Investment Budget and the Multi-Year Fiscal Planning framework for 2027–2030. According to the document, Greece is entering a new phase of investment planning, as this year marks the completion of the largest European financial support cycle the country has experienced since the pandemic.
It is worth noting that the total public investment budget for 2026 stands at €16.692 billion — the highest level recorded in 16 years. Of this amount, €7.192 billion relates to projects and actions under the Recovery Fund, €6.2 billion covers co-financed projects, and €3.3 billion is directed toward interventions financed exclusively through national resources.
Greece’s €10.6bn public investment budget for 2027: what it’s built on
From 2027, however, the landscape shifts considerably. The new Public Investment Budget provides for a total of €10.6 billion, of which €7 billion will be allocated to co-financed projects and €3.6 billion to projects funded exclusively through the national component of the Development Public Investment Program.
The new investment model will be underpinned by ESPA 2021–2027, the new National Development Program 2026–2030, the Common Agricultural Policy Strategic Plan, and the remaining European co-financed programs. The objective is to sustain funding for critical interventions in infrastructure, digital transformation, the green transition, and the enhancement of the Greek economy’s competitiveness.
Two new European funding instruments
Two new European financing tools — expected to play an increasingly prominent role in the coming years — are also being integrated into this new funding landscape. These are the Social Climate Fund, with a total budget of €5.255 billion for the period 2026–2032, which will support vulnerable households and small businesses in coping with the impacts of the green transition, and the Modernisation Fund, valued at €1.502 billion, which will finance investments in energy upgrading and the modernisation of energy systems.
The ministry’s circular emphasizes that the Development Public Investment Program is a central pillar of national development policy, as it contributes to strengthening both public and private capital, improving competitiveness, and maintaining sustainable growth rates.
The need for stricter planning
This new period, however, comes with heightened demands on implementing bodies. Ministries, regional authorities, and managing authorities are being called upon to adopt more rigorous planning practices, prioritizing mature projects with a clear developmental impact. At the same time, the full absorption of available European funds remains a key objective, in order to avoid delays and the risk of losing funding.
In this context, implementing bodies will be required to submit their expenditure forecasts for the 2027–2030 period via the e-PDE information system by the end of September 2026. Final allocations will be determined based on the country’s development priorities, the maturity of projects, historical execution data, and available fiscal headroom.
The transition to the post-Recovery Fund era represents the defining challenge of economic policy for the years ahead. What is now required is not only the securing of new resources, but also the capacity to convert investments into sustainable growth, increased productivity, new job creation, and a more resilient Greek economy.
