Deloitte: Greece in the first positions in the distribution and disbursements of funds of the Recovery Fund

Greece is in the first positions in the distribution and disbursement of its funds Recovery and Resilience Fund (RAF) according to a Deloitte analysis.

In particular, Deloitte Greece carried out the “Comparative Analysis of Capital Absorption of the Recovery & Resilience Fund between Member States of the European Union”, on the occasion of the submission of the second payment request from Greece, in the context of the Recovery and Resilience Mechanism (RRF) of the Fund Recovery (NextGenerationEU).

As part of the analysis, Deloitte investigated the speed and degree of utilization of the Recovery and Resilience Fund (RESF) resources corresponding to each Member State of the European Union, based on the relevant data published on the website of the European Commission.

More specifically, the scope of said analysis concerned the set of Member States of the European Unionfocusing mainly on three points of interest, with the main conclusions being formulated as follows:

-Allocation of capital: Greece is in 1st place in terms of allocation of TAA Capital (Grants & Loans) as a % of GDP, followed by Romania and Croatia. Among the 26 Member States with a Program approved by the European Commission, only seven (7) Member States have requested loans, of which the largest amount, as a percentage of GDP, corresponds to Greece (7.0%) and Italy (6.9%).

– Capital Disbursements: Greece ranks 1st in terms of Capital Disbursements, as well as the sum of Disbursements and Funds Under Evaluation for Next Tranche, as a % of GDP, followed by Croatia and Italy.

-Capital absorption: Spain ranks 1st in terms of the absorption rate of TAA Funds attributed to it, followed by Greece and Croatia. Regarding the Average Relative Speed ​​of Capital Absorption (more on how the average relative speed is calculated is listed in the relevant Deloitte analysis), Greece is in 1st place followed by Croatia and Italy.

For the analysis, preliminary figures of nominal Gross Domestic Product (GDP) for the year 2021, which have been published by the European Commission, were used. In more detail, according to the data on which Deloitte’s analysis was based, the following conclusions emerge:

Regarding the first point of interest (distribution of funds), Greece is the country with the largest percentage (16.7%) of TAA Funds, i.e. Grants & Loans (as a percentage of GDP), with Romania (12.2 %) and Croatia (11%) to follow. At the same time, regarding the distribution of funds in absolute numbers, Greece is the country with the fifth largest financing (around 30.5 billion euros) from TAA resources, behind Italy, Poland, Spain and France.

Regarding the second point of interest (fund disbursements), only eight countries have disbursed the first tranche (including Greece with €3.56 billion), while only five countries, including Greece, have requested the second installment (which, for our country, amounts to 3.56 billion euros). It is noted that the only country that has disbursed the 2nd tranche is Spain. In this context, it is noteworthy that, including Disbursements and Funds under Evaluation for Receiving the Next Tranche, Greece has received the largest amount as a % of GDP (11.1 billion euros, or 6.07%), followed by from Croatia (3.88%), Italy (3.77%) and Romania (2.66%).

Regarding the third point of interest (capital absorption), Spain is in first place, followed by Greece. In particular, among the 22 Member States in which TAA funds (Grants & Loans) have been disbursed, or are to be disbursed, Spain has absorbed the largest percentage of the corresponding total TAA Funds (44.65%), followed by Greece ( 36.36%), Croatia (35.23%) and Italy (34.93%). At the same time, Greece demonstrates the highest average relative speed (11.87x) of absorption of TAA Capital (Grants & Loans), as a percentage of GDP, followed by Croatia (7.59x), Italy (7.38x), Romania ( 5.21x) and Spain (5.04x).

The Average Relative Rate of Absorption of TAA Funds indicates the “distance” currently covered by each Member State of the European Union and is calculated taking into account a) Total Disbursements & Funds under Evaluation for Receiving Next Tranche as a % of GDP of each State- Member and b) the median of Total Disbursements & Funds under Evaluation for Receiving Next Tranche as a % of GDP for the 22 Member States in which TAA Funds have been disbursed, or are to be disbursed.

In conclusion, a dynamic is presented that differs from country to country, in the way, the speed and the degree of utilization of the resources of the Recovery and Resilience Fund. The dynamics in question, as well as the efficient absorption of funds and the timely and effective implementation of the corresponding projects and actions, are expected to bring about multiplying positive economic effects in the coming period, as disbursements to the real economy will accelerate, at a time when the economies of countries of the European Union are negatively affected, among others, by rising inflation, energy costs and rising interest rates.

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