EU approves massive pandemic recovery plans for Greece

Greece cleared the last major hurdle for receiving billions of euros in pandemic recovery funds after the European Commission approved Athens’ spending plans on Thursday.

After weeks of scrutiny, the European Commission endorsed the Greek relief package of 30.5 billion euros ($36.3 billion) from the bloc’s recovery plans, which total 750 billion euros.

EU countries still need to agree to the plans, but this is considered a formality.

“The plan is ambitious and will help build a better future for the Greek people,” European Commission President, Ursula von der Leyen, said in a press release.

“It can reshape Greece for decades ahead.”

This will pave the way for Greece to receive 17.8 billion euros in grants and 12.7 billion euros in loans.

Once the EU countries give their approval, four billion euros can be paid out in pre-financing.

The commission hopes to be able to disburse money by the end of July, an EU official said.

Of this, 2.3 billion euros will be paid out in grants, and 1.7 billion euros in loans.

According to the official, 37.5 percent is to be spent on projects that contribute to climate goals.

For example, 1.5 billion euros are earmarked for renovating residential and public buildings to make them more energy-efficient.

Another 23.3 percent would go to Greece’s digital transformation.

But European parliamentarians and non-governmental organizations have voiced concern about whether much of the money is really doing what EU states agreed it should.

The Climate Action Network, for example, argues that the EU is “greenwashing” its budget by allowing projects that harm biodiversity or investing in fossil fuels.

In addition to Greece, Denmark’s 1.5-billion-euro plan was also approved by the commission later on Thursday.

Other countries are likely to follow this week.

The eurozone’s 19 finance ministers, separately reached a political agreement to approve 748 million euros in debt relief for Greece.

“We welcome the progress made with reform implementation that has been achieved in the challenging circumstances of the COVID-19 pandemic,” the Eurogroup said, citing the “major reform” of Greece’s insolvency framework and progress in human resources management.

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Greece had asked for international support in 2010 briefly before its financial collapse.

It subsequently received billions of euros in credits in exchange for far-reaching political and economic reforms.

The commission had given its approval for the most recent tranche of debt relief earlier this month, arguing that the country had made progress in making its economic system more resilient.