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Greek PM: "Over 70bn Euros for Greece from Recovery Fund"

Recovery Fund
21 Jul 2020 / 12:28

BRUSSELS. "Europe has shown that it can rise to the occasion," said Kyriakos Mitsotakis and added that Greece had taken an active part in all the negotiations.

The Greek PM said that the Summit Meeting was significant both for Europe and for Greece.

In a press conference following the agreement on the Recovery Fund and the Multiannual Financial Framework in Brussels, Mr. Mitsotakis said that Greece will receive a funding packet of over 70bn Euros (Recovery Fund plus resources from the Multiannual Financial Framework).

He said that Europe had shown that it can rise to the occasion and underlined that Greece had taken an active part in all the negotiations.

He said that the grants from the additional programme that was approved essentially correspond to approximately one additional NSRF. "An amount of just over 19 billion, to which are added about 12.5 billion in loans," he said and added that  this money will be disbursed on more flexible terms.

Referring to the Multiannual Financial Framework, he said that despite its reduction, Greece will receive increased resources from the Cohesion Fund, while as regards farmers the resources from the CAP remain stable.

The Prime Minister said that there had been an equitable and fair compromise and called it a historic agreement following four exhausting days of negotiation.

He promised that the Government will administer the funding packet responsibly and prudently for a productive reconstruction of the country.

"Today we have managed to put in motion an extremely ambitious response to the shock that all the economies have suffered due to the pandemic. I believe this response demonstrates that Europe pays attention to the effects of upcoming events," said Mr. Mitsotakis and added that "The situation is laid down by the circumstances and our choices define us - today Europe showed that it can rise to the occasion."

He said that Europe is responding with a Recovery Fund of 750bn Euros and with a 7-year budget of 1,074 trillion Euros.

"For the first time, our country has access to such an ambitious funding tools. We are returning to Athens with a total packet of over 70bn Euros - an unprecedented amount for our country," said the PM and underlined that "Through a process of mutual concessions - which is normal on a European level - we were able to safeguard above all the programmes that have significant national allocations."

When asked about the content of the agreement, Kyriakos Mitsotakis said that it contains provisions for 390bn in grants and 360bn in the form of loans and added that "no countries have a veto. No countries can block the disbursement."

"As part of the deal, to get the “frugal” countries to accept the significant funding packet, they will receive significant increases in the rebates they receive on their budget contributions," he added.

As regards Turkey, he said that the issue was discussed at the start of the Summit. Mr. Mitsotakis believed that there will be a statement from the President of the European Council and added that "at the next Summit Meeting in September there will be a more detailed discussion on how Europe should handle the problem with Turkey. Because Turkey is a problem for the whole of Europe today and not just Greece and Cyprus."

At the beginning of his statement Kyriakos Mitsotakis, referring to the marathon negotiations, joked that he believed it was the first time he had remained without sleep for two days since he was in his twenties.

Recovery Fund and EU Budget Agreement

Agreement was reached at 2 o'clock on Tuesday morning by the leaders of the 27 member-states on the EU's new 7-year budget and the Recovery Fund.

Following exhausting negotiations at a Summit Meeting which broke the previous record for duration from December 2000 for the Treaty of Nice, the 27 member-states agreed that the Recovery Fund will consist of 390bn in grants and 360bn in the form of loans.