Recovery Fund: Three-Pronged Revision, Major Projects "Split," and Reforms as the Key

Last Friday marked the conclusion of perhaps the most decisive visit by European officials to Athens regarding the completion of the Greek Recovery and Resilience Facility (RRF) plan. This wasn't because there haven't been-or won't be-other significant consultations with Greek authorities, but because both the timeline and the remaining tasks for the successful completion of the national plan are now crystal clear.

How is success defined? Both the Greek and European sides now share a common goal: the full absorption of the Fund's grants. The absorption of loans, meanwhile, depends primarily on market demand.
In this context, there are three categories of milestones that will either remain as they are or-for the final time-undergo revision. The final assessment is set for autumn, as September 30th is the last day the country can submit a disbursement request.

No Room for Compromise on Reforms

Regarding reforms, both sides recognize that there is no longer any room for delay. While the core coordination team for the national plan and certain ministries are on track, several government members and sections of the public administration must expedite critical processes.
There are outstanding issues even related to the evaluation of the disbursement request already submitted. The goal is for this to receive the "green light" next month, which requires these specific pending matters to be resolved within the current week.

Projects Moving Forward

A series of projects-ranging from small-scale to major works-appear to be progressing, with completion expected within the scheduled timeframes. These include "difficult cases" of infrastructure, such as the VOAK (Northern Road Axis of Crete) and the E65 Motorway.
Furthermore, for projects like the renovation of the OAKA Olympic Complex or the digital transformation of the IAPR (AADE), the race against time is a given. Nevertheless, these projects will remain part of the next (and final) revised National Recovery and Resilience Plan (RRP). Both sides believe the objectives will be met within the predicted windows-specifically, by the time the milestones for Greece’s final disbursement request are audited.

"Splitting" Projects and Final Plan Adjustments

There is, however, a group of projects that drew intense focus from European officials last week. Significant infrastructure works included in the national plan-such as those linked to the "Daniel" and "Elias" storm disasters-will not be completed on time.
The two sides have already agreed to "split" these projects, allowing them to be funded to the extent that they have been completed. The financing for the remaining segments will be the responsibility of the Greek state, while the freed-up funds will be reallocated to other infrastructure projects, with priority given to the energy support of the islands. This presents a significant challenge for IPTO (ADMIE).
With the expected disbursement linked to Greece’s 7th request currently under evaluation, the country will have received approximately €24.5 billion out of the €36 billion it is entitled to. The penultimate request is expected to be submitted in April, with the final one following in September.