On 16 September 2015, the Council's Permanent Representatives Committee backed a Commission proposal to help Greece maximise its use of EU funds and improve liquidity for boosting growth and creating jobs. The proposal's main objective is to address the lack of public funds available for much needed investments in Greece, and to ensure that the concerned European structural and investment funds deliver their benefits as rapidly as possible on the ground. The approved measures are exceptional and designed to respond to the unique situation created by the financial crisis in Greece.
The draft regulation would improve the liquidity of Greece by around €2.0 billion. This would be achieved in the following ways:
The total €2 billion would be frontloaded within the 2014-2020 period and be budgetary neutral over the same period.
Next stepsThe position agreed by the Council serves as a mandate for the Luxembourg presidency to hold discussions with representatives of the European Parliament. Once an agreement between the Council and the Parliament is reached both institutions have to formally approve the outcome.
BackgroundThe purpose of cohesion policy is to reduce disparities between the levels of development of the EU's various regions by promoting economic growth, job creation and competitiveness.
The EU funds are the biggest source of foreign direct investment in Greece. Under the 2007-2013 programming period almost €42 billion are allocated to Greece. They consist of around €24 billion from EU structural and cohesion funds, the fisheries and rural development funds, and around €17 billion for direct payments to farmers and support measures for agricultural markets. Until now, Greece has received €38.4 billion, corresponding to 17.5% of average annual Greek GDP over that period. An amount of nearly €2 billion for cohesion policy is still available; if it is not used by the end of 2015 it would be lost.
For the 2014-2020 period, more than €35 billion have been earmarked for Greece. They consist of € 20 billion European structural and investment funds and over €15 billion for direct payments to farmers and support measures for agricultural markets. Out of this foreseen allocation, €4.5 billion have already been paid between 2014 and July 2015.