Greece is in a critical phase of overhauling its national recovery plan, “Greece 2.0,” as it seeks to secure the remaining €14.7 billion from the European Union’s Recovery and Resilience Facility. The full €36 billion package, already partially disbursed, is essential to supporting the country’s post-pandemic economic transformation. However, meeting the strict conditions tied to this funding has proven increasingly complex, with time running short and a number of projects now facing cancellation.
The challenge stems from a set of 258 milestones—ranging from digital upgrades to infrastructure reforms—that Greece must fulfill to unlock future tranches. While €3.1 billion was released earlier this month, corresponding to the fifth tranche, efforts are intensifying to revise and resubmit a realistic and credible plan that will be approved by Brussels. At stake is the sixth tranche, worth €3.9 billion, which cannot be requested until the revised version of the plan gains at least preliminary approval from the European Commission. Final approval will come from the EU’s finance ministers. Originally expected by the end of May, Greece’s request for the next tranche is now likely to be delayed until late June or July—pushing back the timeline for subsequent disbursements as well.
Several projects, particularly those with legal complications, delays in implementation, or no clear launch date, are being removed from the plan altogether. These include initiatives like subsidies for green taxis and the installation of electric vehicle charging stations. Digital projects unlikely to be completed by 2026 are also being cut. In their place, Greece is expected to channel funds into more viable efforts—such as expanding fiber optic infrastructure or using satellite technology to monitor unauthorized construction—that still align with the plan’s core goals: allocating at least 38.1% of funds to green initiatives and 22.1% to digital transformation.
At the same time, there is increasing pressure to accelerate the absorption of funds already received. Of the €21.3 billion disbursed to date, only a portion has reached the real economy. The government is being urged to move faster, especially as disbursements under the revised 2025–2028 medium-term fiscal plan are expected to reach 2.8% of GDP next year, or about €8.6 billion. In 2026, disbursements could total around €10.5 billion, split between grants and loans.
The strategy of reallocating funds from underperforming projects to more promising ones—sometimes by oversubscribing budgets by up to 30%—offers a path forward but comes with risks.
