2024-06-03 02:02:28
It’s the umpteenth time in latest occasions that the central banker has sounded the alarm in regards to the funds of the Restoration Fund, with out trying to beautify the state of affairs.
Its fixed bells present one thing. The anxiousness of not shedding the window of alternative that Greece has and the necessity to “choose up pace”.
He sees an issue in getting all this cash into the Greek financial system in time, now that it’s wanted, not tomorrow. A danger, a delay within the realization of investments, which might name into query the initially supposed acceleration of this yr’s progress fee.
As a result of in 2024, virtually 50% of the supposed improve in GDP goes to come back from the investments financed by the Group funds.
The message this time was despatched from the occasion stage of the European Funding Financial institution with the central banker repeating that the speed of absorption of the Fund’s assets could also be at 41% (of the 36 billion euros, subsidies and loans, that now we have acquired) , nevertheless, disbursements to companies are progressing at a sluggish tempo.
Whereas Greece is in 4th place within the related rating, solely 14% of the assets now we have absorbed, i.e. 5 billion euros, has reached the fingers of companies, reflecting the well-known Greek weaknesses of the state equipment. In different phrases, after we get to that time, one thing occurs.
In accordance with the figures of the Ministry of Finance, the state of affairs is as follows:
Of the grants of 18.2 billion euros, 7.6 billion euros have been disbursed to Greece. By March 2024, €3.42 billion had been disbursed to companies, whereas an additional €2.3 billion had been transferred to common authorities our bodies by April.
Of the loans of 17.7 billion euros, 7.3 billion euros have been disbursed. By April, 1.7 billion euros had been disbursed to companies. Nevertheless, 4.8 billion euros of contracts have been signed, in keeping with the goal.
How is the picture reversed? Solely by way of combating these critical points that also plague us and harm the competitiveness of the Greek financial system. Paperwork in public administration, the deficit of digital abilities and the quicker supply of justice, the longer they’re addressed, the extra the Fund’s valuable assets will arrive in time to companies.
Holding the massive image, the central banker’s message is that the Greek financial system is doing properly, is rising quicker than the euro zone, is immune to worldwide crises, a development that, if maintained within the coming years, will strengthen the trail of convergence with the Eurozone.
However in an growing old nation, with a low beginning fee, low labor drive participation, and above all with such a big funding hole in comparison with the Eurozone, the funds of the Restoration Fund are a superb alternative, which after 2026 we in all probability will not have once more.
The numbers present the best way now we have to go. Funding as a proportion of GDP stays properly beneath the EU common (14.3%, in comparison with 22.0% within the EU in 2023).
They’ve actually elevated lately, however have by no means returned to the degrees of 2008, after they hovered round 24%, i.e. at a degree akin to the EU common.
The collapse that adopted throughout the ten-year disaster, the place funding averaged 11.9% (2010-2020), was adopted by a gradual strengthening to only over 14% right now.
We’re within the lucky juncture of having the ability to lay the foundations for continued progress in an effort to proceed convergence, so long as we proceed to develop at a fee of 1.5% a yr above the Eurozone, we reform and obtain surpluses of two% a yr.
If we do that, then in 20 years from now, we can have converged with the Eurozone, because the central banker had stated in his Liberal interview, that’s, GDP per capita can have approached about 90% of the typical GDP per capita of the EU .E.
The cruel actuality is that we nonetheless want one other 20 years to get to the place we have been about… 20 years in the past, in 2007.
At the moment, Greece’s GDP per capita in buying energy models had reached 95% of the EU, to break down after the disaster and our entry into the memorandums of understanding to 71% in 2012 and has since remained at ranges beneath 70% . In 2023 it closed at 67%.
And in an effort to do all this, along with political will, political, fiscal and monetary stability is required. That is the straightforward recipe.
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