Athens.- Greece needs a new policy on investment support using new up-to-date tools – tax incentives, rolling advance payments and amortizations, etc – instead of traditional direct subsidies, the head of Federation of Hellenic Enterprises (SEV) said on Friday, during a meeting with Economy, Development and Tourism Minister George Stathakis, Public Investment Deputy Minister Alexis Haritsis and Alternate Industry Minister Theodora Tzakri.
SEV presented a proposal for the cooperation with Economy ministry and social group’s institutes in assessing the impact of structural reforms during the crisis and the possibility of cooperation with the ministry to draft a report on the impact of changes made in 2011 on the operating framework of business parks in the country.
Stathakis said that the government was turning its policy towards supporting the industry and presented in detail ministry initiatives on existing and new funding tools, a new development law and changes in strategic investments.
Tzakri referred to an extended de-industrialization of the country in the last few years and the need to draft a new single development policy.
Haritsis said that business activity was a basic pillar in the 2014-2020 EU-funded plan and noted that new programs should be designed so as to resolve the problems of the real economy.
Commission: A new start for jobs and growth for Greece, as 35 bln-euro-plan gets underway
The European Commission welcomed on Thursday the signing on Wednesday of the Jobs and Growth Plan for Greece by the European Parliament and by the Council and said the exceptional measures presented by the Commission can now be implemented as soon as Friday.
Greece is set to receive over 35 billion euros already earmarked from the EU budget over the period 2014-2020, with 20.6 billion euros from the European Structural and Investment Funds. The first 800 million euros will be paid next week.
Overall, almost 1.4 billion euros will be released in 2015 and 1 billion euros in 2016, the Commission said in a press release. “These exceptional measures will also allow Greece to spend around 2 billion euros less from its national budget,” it said.
“With the entry into force of the Commission’s proposals the EU funds can begin flowing to Greece, starting with a payment of 800 million euros next week. It is investment in the real economy, in people and companies in Greece,” Vice-President for the Euro and Social Dialogue Valdis Dombrovskis said.
“The Commission stands ready to give Greece all the technical assistance it needs to make the most of EU funds at this critical time,” he added.
Corina Creţu, Commissioner for Regional Policy said: “I was in Greece last week to discuss the implementation of this package with Prime Minister Alexis Tsipras. These measures are a strong message of European solidarity. It is now up to our Greek partners to do their part and ensure the best use of EU funds on the ground.”
The Jobs and Growth Plan for Greece is intended to flank the comprehensive set of reforms agreed between the Greek government, the Commission and international partners in the context of the new economic adjustment programme.
The Commission also offers technical assistance and expertise to Greece through its new Structural Reform Support Service to ensure the swift activation of the funds and their best use to support recovery, and create foundations for sustainable growth.
Greek banks aim to complete recapitalization
The recapitalization needs of Greece’s systemic banks will be determined in the next few days after finalizing the results of a current stress tests, with the aim to cover any capital needs by the end of the year, banking sources told ANA-MPA.
In this framework, the government is expected to table in Parliament a draft law defining the role of Hellenic Financial Stability Fund and set the principles of recapitalization procedures. The draft law was currently drafted by the Finance ministry, the Bank of Greece, Hellenic Financial Stability Fund, the institutions and all interested banks.
European Central Bank is expected to announce the recapitalization needs by the end of the month, while Greek banks’ managements will be informed a few days earlier after signing strict confidentiality clauses.
Piraeus Bank on Thursday launched an optional public offer to its bondholders in the framework of recapitalization procedures, while other systemic banks are expected to follow suit.