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Greece Preliminary

€32.000.000.000
Total Funding
Green Spending Share EU
Green Spending Share Total
Total Funding Bar Chart

Overview of RRP Draft

Four Pillars of Recovery

In its draft Recovery and Resilience Plan Greece has not yet disclosed funding amounts on measure-level, which would be necessary for a quantitative analysis. Instead, it set out four pillars of investment:

The Green transition (€6.2bn)
The digital transition (€2.1bn)
Employment, skills, and social cohesion (€4.1bn)
Private investment and economic & institutional transformation (€4bn)

Additional to these amounts, funded through grants from the EU Recovery and Resilience Facility (RRF), Greece plans investments of €12.6bn funded from loans under the RRF and €3bn in grants from other Facilities under the Next Generation EU programme.

The pandemic hit the Greek economy after a decade long crisis and stagnation, at a moment when economic growth was timidly picking up. On the eve of the pandemic Greece’s economy was still 18% lower than prior to the 2010 debt crisis, while economic activity is expected to shrink by 10% in 2020. Greece entered the pandemic with a public debt legacy of 180% of GDP, while the combination of additional spending to shield the economy and of economic contraction will substantially increase Greece’s debt-to-GDP ratio, to more than 200%.    

A limited “fiscal space” means that the overwhelming majority of recovery expenditures is expected to come from the EU’s Recovery and Resilience Facility (RRF), of which Greece is one of the major net beneficiaries: available RRF grants and loans amount to €29 billion (constant 2018 prices), equivalent to 15.8% of Greece’s 2019 GDP. Additional €3bn in grants will come from other components under the Next Generation EU programme.  

Green Spending

According to the “Strategic directions of the National Recovery and Resilience Plan” published by the government, the green transition related reforms and investments funded from the RRF amount to €6.2 billion of grants. This represents 38% of RRF grants (€16.4bn), but only 21% of total RRF funds (€29bn; grants and loans). It is important to note, however, that the public draft RRP lacks the detail needed for a proper assessment. A calculation of the actual green spending share mirroring the Commission’s methodology for assessing national plans against the green spending benchmark of 37% will only be possible once more information is available.    

According to publicly available information, the €6.2 billion grants dedicated to the green transition include investments in new fossil gas distribution infrastructure although the precise amounts haven’t been disclosed to this date. Similarly, the RRP seemingly includes substantial infrastructural investments, particularly transport road infrastructure that stabilizes a high carbon intensity status quo.  

Although a comprehensive quantitative assessment is not possible at this stage, we anticipate the disclosure of the full RRP in the first quarter of 2021 and will update our assessment accordingly once this information is available

*Our analysis covers the recovery plan presented in November 2020. This report was written by Olivier Vardakoulias (WWF Greece) and Dimitris Lalas (FACETS S.A.). We are grateful to Antonia Brand and Helena Mölter (Wuppertal Institute) for providing valuable inputs.

Our Highlights

Good Practice

Linking the economic recovery to the just transition of coal regions

Along with a number of clean energy, energy efficiency, and clean transport investments that can help Greece accelerate its decarbonization, Greece leverages RRF funds to support the coal phase out by 2028 by mobilizing additional investment in coal regions for a just transition. The Just Transition Fund itself actually provides only relatively limited funds for this.

Bad Practice

Using recovery funds for fossil gas infrastructure

Greece’s recovery measures include investments in new fossil gas distribution infrastructure, which could lock Greece’s energy system in a high carbon intensity path for many decades. Additionally, against EU guidelines, these investments have been classified as “contributors to the green transition” in the (draft) RRP.

To Our Surprise

Green budgeting comes to Greece

The 2021 budget introduces the notion of green budgeting for the first time in Greece. In 2020 the government joined the OECD’s Paris Collaborative on Green Budgeting and is currently developing methodologies for tracking the climate contribution of budgetary and fiscal policies.

Sectoral Analysis

This dashboard provides a detailed overview of the allocation and assessment of measures by sector for:

Greece Preliminary

Using the drop-down option, you can compare results with other countries.


Sector Analysis DE

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Policy Measures

This list provides a full overview of all recovery measures. Our detailed report contains a deep dive on the most important recovery measures and how we assess them. The report can be downloaded below.

Measure List

Knowledge Hub

This study by WWF Greece points out possibilities for a green recovery in Greece, including an analysis of the shortcomings of the National Energy and Climate Plan as well as principles for an effective recovery and concrete proposals for a stimulus programme.

Blueprint for a green recovery in Greece
2020
Scope:
Greece

This official document marks the Greek's government's strategic roadmap outlining priorities and policy measures for reaching climate and energy objectives by 2030.

National Energy and Climate Plan (NECP)
2019
Scope:
Greece

This report analzying future trends in the Greek economy and providing wide economic policy recommendations was written by a commission chaired by Greek Nobel laureate and economist C. Pissarides on behalf of the Greek PM. It was to serve as a basis for the Greek National Recovery and Resilience Plan.

Growth Plan for the Greek Economy (in Greek)
2020
Scope:
Greece

This official document sets out priorities for the Greek recovery spending as a draft basis for the national recovery and resilience plan.

Strategic directions of the National Recovery and Resilience Plan
2020
Scope:
Greece