EU Funds Available, But Not Absorbed
The European Parliament approved funding of €879 million to Greece, but the amount would be channelled to cover the deficit, instead of investment.
The EU Task Force operating in Greece seeks a solution to major delays in National Strategic Reference Framework, as funds are available, but they do not reach to entrepreneurs, unemployed and beneficiaries of projects.
On Thursday, the European Parliament approved the increase of the EU contribution to projects from 85% to 95%. So, the Greek State will pay less for projects, while it will receive additional €879 million due to the difference in participation of the period 2007-2011.
In case Greece the funds in 2011, then the government will have another way to cover the gap in deficit, in order to close to 9% of GDP.
The rationale of institutions is to increase liquidity in Greece to be invested in projects, which focus on growth and employment, such as retraining employees, creating business clusters or investing in transport infrastructure.
However, the funds decrease instead of increasing, according to the new budget plan. The official justification is that the EU funds cannot be absorbed.
In a period of unprecedented credit crunch with the rate of loan flow to the private sector at -2.2%, there are billions of euros available but not channelled to the market.
In a period of unprecedented credit crunch with the flow of loans to the private sector to -2.2% in October, according to the BoG, there are billions of euros not entering the market.
The government blames the crisis; however, a report of the Governor of the BoG, the EU Task Force and business representatives speaks of long delays.
(capital.gr)