By Vangelis Dourakis

A few hours left to expire for the public electronic consultation concerning the new Development Law: Immediately after the countdown to activate it with the submission of the relevant funding applications expected in late May, early June. The reformed state aid framework expands funding to medium -sized enterprises and introduces new processes for faster licensing and investment.

Emphasis will be placed on investment projects of manufacturing and industry, innovation and extroversion, especially if they grow in the region and especially in the border areas.

Applications with the new Development Law is calculated to take place between May and Julywith evaluations made between September to November this year.

The draft law entitled: “Sustainable Development, Productive Transformation of the Greek Economy – Amendment of Provisions of Development Law 4887/2022 – Development Law: Greece Strong Development – and Other Provisions” It introduces a series of interventions, with the main creation of new reinforcement regimes, the remodeling of existing ones, the establishment of a rapid licensing incentive, as well as the improvement of the evaluation and control mechanisms of investment projects.

Emphasis is placed on boosting investment in areas with serious economic and demographic problems, such as border regional units, areas with GDP per capita below 70% of the national average, or areas facing population shrinkage due to adverse conditions, as well as natural disaster areas.

It is particularly important that the new law is expanding the basis of businesses that can be enhanced and medium -sized enterprises are subsidized.

Unlike the current Development Law 4887/2022, which included thirteen regimes, the new framework provides for twelve state aid regimes.

The twelve regimes of the new development framework are:

1. Modern technologies

2. Green transition – environmental upgrading of business

3. Social entrepreneurship and crafts

4. Special Aid Areas

5. Agriculture – Primary Production and Processing of Agricultural Products – Fisheries and Aquaculture

6. Processing – Supply Chain

7. Business extroversion

8. Strengthening tourist investment

9. Alternative forms of tourism

10. Large investments

11. European value chains

12. Entrepreneurship 360 °

What are the amounts of aid

The highest aid amounts are set as follows: up to EUR 20 million for individual companies and up to EUR 50 million for groups of connected or affiliated undertakings. These limits are increased by 50% when the aid is provided through tax exemption.

The new development law provides five basic types of aid:

  • Tax exemption, exempting from paying income tax on pre -tax profits.
  • The grant, that is, the public support by the State to cover part of the eligible expenses.
  • The leasing subsidy, which may take up to seven years from the completion of the investment.
  • The payroll costs for new jobs created.
  • And funding for business risk, with interest rates or reduced securing loans.

Eligible investments are:

  • The creation of a new installation,
  • The expansion of productive capacity,
  • The diversification of existing installation in new products or services,
  • The fundamental change in the production process or to provide services

In addition, it is eligible to obtain assets from an installation that has been closed or was going to close if it was not purchased. However, it is noted that the acquisition of business shares is not subsidized as it is not counted as an initial investment.

For small and medium -sized enterprises, the bill provides for investment reinforcement in sectors with high growth and environmental footprint. Includes costs for consulting services, innovation (technological, procedural, organizational), energy efficiency measures – other than interventions in buildings – as well as for efficient use of natural resources and the transition to the circular economy.

Also eligible are the investments for the production and co -production of renewable energy (RES) energy, the consolidation of environmental damage and the restoration of natural habitats and ecosystems, to protect or restore biodiversity, as well as the implementation of nature -based solutions for adaptation.

The bill also includes forecasts for vocational training, for the installation of efficient district and telecommunication systems, but also for the recruitment of workers who are disadvantaged or are people with disabilities.