The increase in his budget Public Investment Program for 2024 by 900 million euros, the Minister of National Economy and Finance announced today Kostis Hatzidakis and the deputy minister Nikos Papathanasis in the context of the press conference granted by the co-competent ministers for the specialization of the announcements of the Prime Minister Mr. Kyriakos Mitsotakis at the TIF in relation to the development and strengthening of the resilience of the economy.

With this increase, the total budget of the PDE is 13.1 billion euros, from 12.2 billion, and the additional funds, as noted by Mr. Hatzidakis, come from two sources:

First, the development of the economy that allows for an increase in government revenue without an increase in taxes. And secondly, its treatment tax evasion with 11 different initiatives that are ongoing and yield specific revenues that are available either to strengthen the income of vulnerable citizens, with the actions announced last week, or to strengthen the PDE. “The country, emphasized Mr. Hatzidakis, must constantly send a strong development message. We don’t want pending public investments and we pay particular attention to the promotion of the country’s development process.”

The deputy minister Nikos Papathanasis underlined: “H development in the country, which is reflected in all official European and international indicators, and brings Greece to the 2nd place in the EU, it did not succeed, it succeeded. The 500 thousand new jobs, created since 2019, the investments of companies that are world champions, but also the fiscal space, which in turn leads to further support for society and the everyday life of citizens, are the product of the systematic and effective work of the governments of Kyriakos Mitsotakis. We continue in the same direction, so that not a single euro is lost, with the Public Investment Program as a key tool, which, despite the fact that it already amounts to 12.2 billion euros – a record budget of the last 14 years – we are increasing further, by 900 million euros for 2024, with the annual increase predicted at 10%-17% for the two years 2024-2026″.

For the implementation of the PDE increase, it will be submitted to Parliament supplementary budget.

In the context of the press conference, Mr. Hatzidakis and Mr. Papathanasis presented in detail the ministry’s initiatives that will be implemented in the next period.

In particular, the Minister of National Economy and Finance Kostis Hatzidakis presented four actions for a modern and crisis-resistant economy which include the following:

A. A healthy banking system that will serve the economy

The aim is to strengthen the liquidity of businesses and households with competition between banks. In this context:

-The application for the extension of the “Hercules” program by an additional 1 billion euros was submitted to the European Commission. “We are waiting for the positive response of the EU. With the implementation of the program, the red loans of systemic banks will come down to the EU average. It is another positive step for the banking system, we want a competitive, competitive and above all healthy banking system”, emphasized Mr. Hatzidakis. He also reminded that with the contribution of “Herakles”, non-performing loans have decreased from approximately 40% in July 2019 to 7.5% in March 2024, while in total banks and servicers have been reduced from 92 billion euros in 2019 to 69 billion euros in 2023.

– The next phase of the divestment of National Bank is proceeding, while the divestment of Eurobank (1.4%), Alpha (8.98%), National Bank (22%) and Piraeus (27%) preceded it.

-The merger of the Bank of Attica and Pankritia is completed, leading to the fifth banking pillar and strengthening competition at the level of deposits, loans and commissions, with obvious benefits for depositors and borrowers.

B. Incentives for investments in innovation as well as acquisitions – mergers

“Promoted, as Mr. Hatzidakis pointed out, perhaps the most competitive framework of tax incentives in the EU for research expenses, the Startup Visa is created and two new incentives for business mergers are introduced. The aim of the interventions is to encourage risk-taking by businesses to invest in research, to strengthen the interconnection of businesses with the academic community and the startup ecosystem, and to direct more foreign investment into productive activities.”

Through the new Startup Visa initiative, a residence permit will be granted (according to the Golden visa model) for an investment of 250,000 euros in a startup business registered in the National Startup Register (Elevate Greece), provided that 2 jobs are created within the first year. The granting of a residence permit for a capital contribution of at least 400,000 euros to companies based in Greece is already valid. “We do not criminalize real estate investment, but investment is not only in real estate. It is definitely also in the productive economy,” the minister emphasized.

For acquisitions – mergers and innovation, in addition to the established tax incentives, additional financial incentives are created. In particular, the NSRF action of approximately 350 million to finance 50% of the investment costs of small and medium enterprises, to be announced soon, will provide for a further grant (+10%) for investments by companies that are the product of a merger. In addition, until the end of the year, a Patent Fund will be created by the Hellenic Development Bank through which the acquisition of an international patent will be financed, as well as the development of a viable product (Minimum Viable Product) based on this patent.

C. Promotion of the creation of a National Investment Fund

The creation of the new fund is provided for in the recently passed law on the restructuring of the Superfund. This is a new investment tool, similar to those operating in most European Union countries, which will invest in critical sectors (indicative: green transition, circular and blue economy – strategic infrastructures and networks – transport – technology) that are not sufficiently covered by existing funds but have added value for the economy. The Fund will also be able to operate as a co-investor with other funds, mainly with minority participations. The initial investment capital is 300 million euros.

The Superfund has hired Blackrock which will make recommendations to the Ministry of National Economy and Finance by the end of the month for the most appropriate corporate structure and organization of the new Investment Fund.

“We want, emphasized Mr. Hatzidakis, to send a message that the country is changing at this level as well.”

D. Protection from natural disasters

The aim of the initiatives is to strengthen the resilience of both households and businesses as well as the state budget against the effects of natural disasters, which in recent years are more frequent and more intense than in the past. Following good practices of other European countries, the following interventions are adopted:

1. The ENFIA discount is doubled from 10 to 20% for homes worth up to 500,000 euros that are insured against natural disasters.

2. Homes of greater value that are insured will continue to have the 10% discount of the ENFIA and must be insured for natural disasters by 1/6/2025, otherwise they will not be compensated by the state.

3. From 1/6/2025 all businesses with a turnover of more than 500,000 euros must be insured against natural disasters. Today the measure applies with a turnover limit of 2 million and concerns 17,000 legal entities (5% of all businesses) that have 87% of the gross revenue of all businesses in the country. By reducing the turnover limit to 500,000 euros, the measure is extended to 51,000 legal entities (15% of the total) that have 95% of the gross revenue of all the country’s businesses.

4. From 1/1/2025 and with the renewal or conclusion of a new insurance policy, all vehicles for private and professional use must also be insured for natural disasters (the cost is estimated at 7 to 13 euros per year).

Besides, Mr. Papathanasis emphasized, among other things, that Greece is in the 4th place in absorption of the resources of the NSRF 2021-2027, and in the 6th place in terms of the absorption of resources of the Recovery and Resilience Fund, with 47.9%, at the time when the EU average is 33.8%. He estimated that this position will improve as dozens of projects funded by European funds are underway throughout the Territory, while the payment of the 4th request, amounting to 1 billion euros for grants, which was recently approved by the E .Eh, raising the percentage to 50.5%.

“The fulfillment of the milestones is identified with reforms”, pointed out Mr. Papathanasis, who also responded to the objections raised by the Recovery Fund, the ESPA and all the financial and investment tools that the country now has at its disposal, do not support small and medium entrepreneurship.

The entirety of the NSRF is directed to SMEs while, within the context of the TAA, 347,000 small and medium-sized enterprises have already joined subsidy programs. At the same time, of the 844 investment projects that have been submitted, in the loan section, 515, i.e. 61%, come from small and medium enterprises.

The real picture is similar and regarding the strengthening of entrepreneurship from the Just Development Transition Program, the first relevant program in the EU, amounting to 1.6 billion euros, in the context of which 4,000 new jobs are expected to be created.
The Hellenic Development Bank also plays an important role in the strengthening of SMEs and in the expansion of their lending perimeter by banking institutions, with the total budget of the loans it grants, amounting to 3.9 billion euros. Only within the framework of the new Entrepreneurship Fund III, loans exceed 2.2 billion. euro. 84% of the loans from the TEPIX III Loan Fund are granted to companies with less than 50 employees, and 81% to companies with a turnover of less than 10 million euros. While 90.1% of the TEPIX III Guarantee Fund loans are also granted to companies with fewer than 50 employees and 91.5% to companies with a turnover of less than 10 million euros. At the same time, 60% of the loans concern businesses in the Region.

In the same direction, the new Just Development Transition Portfolio Fund, which will be implemented by the ETA, will move in the same direction, in the context of which loans of 187 million euros are expected to be granted, with recipients being very small and newly established businesses, as well as women’s entrepreneurship.