Financial Tools
PK CONSULTING GROUP
Business tools for the implementation of investment plans
Development Law
NSRF 2021-2027
Recovery and Resilience Facility
PK CONSULTING GROUP
Development Law
Based on the text you provided, here is a summary of the Greek Development Law in English.
The Development Law is a key component of Greece’s economic strategy, designed to boost entrepreneurship and regional development. The state uses it to offer incentives to investors for a variety of projects in sectors like industry, tourism, and technology. The main goals are to create jobs, promote innovation, and increase competitiveness.
Types of Investments and Incentives
To qualify, an investment must be an “initial investment,” meaning it must be one of the following:
Creating a new business unit.
Expanding the capacity of an existing unit.
Diversifying production to offer new products or services.
Making a fundamental change to the entire production process of an existing unit.
Incentives can take the form of grants, tax exemptions, or subsidized financial leasing. The level of support varies, ranging from 30% to 75% of the project’s budget, depending on the type of investment, the size of the company, the specific investment scheme, and the region where the project is located.
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NSRF 2021 2027
The NSRF 2021-2027 consists of 22 Programs, including 9 Sectoral and 13 Regional Programs:
The Sectoral Programs (Competitiveness, Human Resources and Social Cohesion, Digital Transformation, Environment and Climate Change, Transport, Civil Protection, Just Development Transition, Technical Assistance and Beneficiary Support, Fisheries, Aquaculture, and the Sea) focus on one or more sectors and are implemented nationwide.
The Regional Programs (Eastern Macedonia and Thrace, Central Macedonia, Western Macedonia, Ionian Islands, Epirus, Thessaly, Central Greece, Attica, Western Greece, Peloponnese, Northern Aegean, Crete, Southern Aegean) correspond to each of the Greek Regions and include regionally targeted actions.
During the 2021-2027 period, 5 Territorial Cooperation Programs – Interreg are being implemented (Greece – Albania, Greece – Bulgaria, Greece – Cyprus, Greece – Italy, Greece – North Macedonia).
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National Recovery and Resilience Plan "Greece 2.0"
The National Recovery and Resilience Plan “Greece 2.0” was approved on July 13, 2021, by the Economic and Financial Affairs Council (Ecofin) of the European Union.
“Greece 2.0” includes 106 investments and 68 reforms, structured into four pillars, and mobilizes a total of €31.16 billion, of which €30.5 billion comes from European funds (€18.43 billion in grants and €12.73 billion in loans) to stimulate €60 billion in total investments in the country over the next five years.
The four pillars of the Recovery Plan are:
- Green Transition
- Digital Transition
- Employment, Skills, and Social Cohesion
- Private Investments and Economic Transformation
Business Investment Loans Loans from the Recovery and Resilience Facility (RRF) can cover up to 50% of the total eligible investment cost. Private business participation must cover at least 20%, while at least 30% must be financed through loans from credit institutions.
Grants The Recovery and Resilience Facility (RRF) grants aim to finance sectoral private investments (tourism, agricultural investments, etc.)