The government is directing resources worth €8 billion from three European funds to projects with direct impact on citizens’ daily lives and support for vulnerable social groups. The resources come from the Social Climate Fund (€4.7 billion), the Modernization Fund (€1.6 billion) and the Islands Decarbonization Fund (€1.7 billion), potentially benefiting 1.5 million energy and transport vulnerable households and 75,000 very small enterprises.
The government characterizes the package as a “mini Recovery and Resilience Fund,” with implementation horizon until 2032, covering a six-year period after the completion of the RRF.
Ten funding axes for improving quality of life
The new projects to be included in the funding package move across ten basic axes aimed at improving citizens’ quality of life. They include upgrading Athens metro, procuring new electric buses for urban centers, energy shielding of homes and renovation of student dormitories.
Additionally, construction of social housing is planned, along with electrical interconnections to islands, modernization of the shipping fleet and construction of dams for irrigation, water supply and power generation on islands. Finally, energy upgrading of very small enterprises and improvement of daily life for people with disabilities are promoted.
New home energy program with €1.1 billion budget
Among the most significant projects included in the Ministry of Environment and Energy’s planning for Social Climate Fund resources is the new energy upgrade program for homes and equipment of energy vulnerable households. This is essentially a new home energy efficiency program with a budget of €1.1 billion.
The reform of the home energy program model will be based on the fact that the offer will be made by energy providers, bypassing bureaucratic stages. The provider itself will approach the vulnerable citizen.
In parallel, a new subsidy program for replacing energy equipment of vulnerable households is promoted with a budget of €920 million for heat pumps and €61 million for solar water heaters.
Direct income support and heating allowance
Equally important is the measure for direct income support directly to citizens with resources of €480 million. It includes a new heating allowance for vulnerable households using fossil fuels and rent subsidy for vulnerable households and civil servants working away from their base.
Potential beneficiaries are poor households according to the Social Climate Fund, energy and transport vulnerable households with available income up to €25,000, as well as vulnerable households with social and geographical criteria with available income up to approximately €30,000.
Social housing and residential programs
In the housing sector, which is an issue that intensely concerns Greek households, three main projects are planned. First, New Generation Social Housing with 1,000 total homes (800 renovated and 200 new) in public properties, with a budget of €119 million.
Second, increasing housing stock through the “Renovate to Rent” program with a budget of €207 million, which aims to finance renovation of closed private properties under the condition of long-term rental to vulnerable households and students.
Third, housing for civil servants on islands and mountainous areas, with horizontal rent subsidy for civil servants serving in areas with high housing costs, with a budget of €200 million.
Transport and electric mobility
In the transport sector, the program includes significant interventions for improving mobility. New metro trains for lines 2 and 3 and reorganization of line 1 trains are planned with a budget of €200 million.
Additionally, 210 new electric buses will be procured for Attica and Thessaloniki, accessible to people with disabilities, with a budget of €117 million. In parallel, coverage of transport needs for students with disabilities attending Special Schools across the country is promoted with a budget of €106 million.
Finally, social leasing of electric vehicles for transport vulnerable households and charging infrastructure is planned with a budget of €153 million, as well as acquisition of professional electric vehicles by very small enterprises with a budget of €275 million.
With information from Apogeumatini
