Investors have a wide selection of alternatives for their financing needs to implement their projects Greece with the contribution of significant resources originating from the Greek State and European Union.
The Statutory framework (Law 4399/2017) for the establishment of Private Investments Aid Schemes for the regional and economic development of the country and the PA (Partnership Agreement for the Development Framework) 2014-2020 constitutes the main strategic plan for growth in Greece.
Investment Insentives Law (4399/2016)
Statutory framework for the establishment of Private Investments Aid Schemes for the regional and economic development of the country
Key Objectives
The key objectives of the law include:
- the creation of new jobs with emphasis in the employment of skilled human resources
- the increase of extroversion and innovativeness of businesses
- the increase in added value
- the improvement of technological level and competitiveness
- the creation of a new extrovert national image (branding)
- the reindustrialization of the country
- the attraction of foreign direct investments
- achieving a better placement of the country in the International Division οf Labor
- the promotion of a balanced and sustainable development with emphasis on regional convergence
Terms and Conditions for Participation
Nature of Incentive
The aid has the nature of an incentive, only if the beneficiary has submitted a written application for the participation in the aid scheme before the implementation of the investment
plan.
Contents of Investment Plan – Initial Investment
- development of a new plant
- capacity expansion of an existing plant
- diversification of a plant’s production
- substantial modification of the entire production procedure of an existing plant
- acquisition of all assets of a closed plant
Minimum Investment Acount
- Large sized companies: 500.000 €
- Medium sized companies, cooperatives and clusters: 250.000 €
- Small sized companies: 150.000 €
- Very small sized companies: 100.000 €
- Social Cooperative Companies (SoCC): 50.000 €
Entity Participation in the Investment Cost
The participation of the entity in the cost of the investment project can take place either through own funds or through external financing, provided that 25% of the total investment cost does not contain any state aid, support or subsidy
whatsoever.
Bebeficiaries
Beneficiaries of the aid are companies that are established or maintain a branch in Greece at the commencement date of the investment plan and all under one of the following corporate types:
- Personal company
- Commercial companies
- Social Cooperative Companies (SoCC)
- Agricultural Cooperatives (AC), Producer groups (PG and Agricultural Corporate Partnerships (ACP)
- Companies in establishment or merger procedures, provided that they have completed their publicity procedures before the commencement date of the investment plan
- Companies that operate as joint ventures, provided that they are registered in the General Electronic Commercial Registry (GEMI)
- Public and municipal companies, and their subsidiaries (in accordance with the limitations of Article 6)
Eligible investment plans
Eligible economic activities are Manufacturing and a significant part of the provision of internationally marketable services and products sectors, provided that they are compatible with the General Block Exemption Regulation (GBER).
NON ELIGIBLE ACTIVITIES FOR THE AID SCHEMES OF THIS LAW:
A. In accordance with the provisions of the GBER, the sectors of:
- steel
- synthetic fibers
- coal
- shipbuilding (an exemption will be requested)
- transport and related infrastructure
B. Based on the Business Activity Codes (ΚΑΔ) indicatively: Commerce, Scientific research, Hospitality, Education, Construction
Partnership Agreement (PA) 2014-2020
The PA (Partnership Agreement for the Development Framework) 2014-2020 constitutes the main strategic plan for growth in Greece with the contribution of significant resources originating from the European Structural and Investment Funds (ESIF) of the European Union.
The PA, through its implementation, seeks to tackle the structural weaknesses in Greece that contributed to the economic crisis, as well as other economic and social problems caused by it. Moreover, the PA 2014-2020 is called upon to help attain the national targets within the Europe 2020 Strategy. The target of the Europe 2020 Strategy is to foster growth that is:
- smart, with more efficient investments in education, research and innovation;
- sustainable, because of the decisive shift to a low carbon economy, and
- inclusive, focusing especially on job creation and poverty reduction.
The PA vision of growth
“To contribute to revitalizing the Greek economy through the recovery and upgrading of the productive and social fabric of Greece and the creation and maintenance of the sustainable jobs, spearheaded by outward looking, innovative and competitive entrepreneurship and on the basis of reinforcing social cohesion and the principles of sustainable development.”
Financing priorities
- Enhancing business competitiveness and extroversion, shifting to qualitative entrepreneurship spearheaded by innovation and higher domestic added value
- Development and utilisation of human resource abilities – active social inclusion
- Protection of the environment – Transition to a more environmentally friendly economy
- Development – modernisation – completion of infrastructures for economic and social growth
In the framework of these strategies, Greece and its Regions are called upon to identify those activities in which they present or are in the position to create competitive edges and on which to focus available resources and efforts in order to reap significant development results. On a national level, eight sectors have been selected to which priority will be given. They are expected to play a greater role in economic growth.
These sectors are:
- Agri-food
- Health – medicines
- ICT
- Energy
- Environment and sustainable development
- Transport
- Materials – construction
- Tourism, culture, creative industries
Integrated Territorial Investments
Integrated Territorial Investments is yet another feature of the development planning for the 2014 – 2020 period. These are integrated territorial development tools for applying development strategies in regions that present specific problems or stand out because of their significant development capabilities. Combined investments can be realised in the context of Integrated Territorial Investments, enabling them to be financed by more than one Fund, aiming at comprehensively tackling problems or fully capitalising on the development capacities of a region.
The 2014-2020 PA comprises 20 Programmes, of which 7 are Sectoral and 13 Regional:
- The Sectoral Programmes pertain to one or more sectors, with nationwide geographical scope
- The 13 Regional Operational Programmes (ROPs), one for each Greek Region, contain actions of regional sc
Sectoral OPs
- Operational Programme “Competitiveness, Entrepreneurship and Innovation” (EPAnEK)
- Transport Infrastructure, Environment and Sustainable Development Operational Programme (YMEPERAA)
- Human Resources Development – Education and Life Long Learning Operational Programme
- Reform of the Public Sector Operational Programme
- Technical Assistance Operational Programme
- Rural Development Programme (RDP)
- Fisheries and Maritime Operational Programme
In the context of the Cohesion Policy, European Territorial Cooperation (ETC), comprises the main tool for strengthening territorial cooperation in the European framework, as well as with third countries and comprises one of the main options for the programming period 2014-2020. The European territorial cooperation on an EU member state level is implemented through the cross-border, transnational and interregional collaboration. The said programmes are either bilateral or multilateral.
The 5 bilateral programmes pertain to cooperation with an equal number of countries neighbouring with Greece. Out of these countries three are EU members (Cyprus, Bulgaria and Italy) and receive financing from the ERDF, whilst the other two are candidate member states (Albania and the Former Yugoslav Republic of Macedonia) and are financed by the Instrument for Pre-Accession Assistance (IPA).
The bilateral European Territorial Cooperation Programmes constitute a lever for growth in the regions that participate on both sides of the borders, in creating a common European area of cooperation in the broader area of the Balkans, as well as the western and southern borders of Greece.
The multilateral Territorial Cooperation Programmes, in which Greek regions collaborate, are the following:
- Adriatic – Ionian (transnational)
- MED (transnational)
- MED ENI CBC (cross-border)
- Black Sea basin ENI CBC (cross-border)
- INTERREG EUROPE (interregional)
- Balkan Mediterranean (transnational)
Management and control system
The effective management and implementation of the Operational Programmes and the coordination of the stakeholders in planning, managing, monitoring and implementing them are crucial factors for the successful implementation of the development strategy for the programming period 2014-2020, in line with the Management and Control System (MCS), which consists of the following:
- Designation of the authorities/bodies, which undertake competences for management, certification, control and coordination, in accordance with Regulation (EC) 1303/2013.
- The organisational structure and individual competences of the said authorities/bodies.
- The Operational correlation of authorities/bodies and compliance with respect to the separation of functions.
- Written procedures to be implemented.
- Regulatory acts required for the designation of authorities/bodies and the implementation of the Operational Programmes.
In this context, the main principles that govern the Management and Control System 2014-2020 focus on the following:
- Existence of common rules in the management and monitoring of the OPs in accordance with the principle of sound financial management and with the aim of better controlling potential divergences in their application and the timely adoption and application of corrective measures.
- Mandatory electronic exchange of data between management authorities and the beneficiaries of the operations, through the Monitoring Information System (MIS), with the aim of reducing the administrative burden of the involved authorities and bodies.
- Strengthening the electronic communication between the MIS and the information systems of the Beneficiaries and the Intermediate Bodies, as well as other General Government bodies with the aim of reducing red tape and the more efficient operation of the involved authorities and bodies.
- Timely financing of the operations through the PA Central Account in combination with the electronic interconnection between the Information Systems of MIS, of the Programme for Public Investments and the Bank of Greece.
The MCS design took into account the architecture of the new development design, the new requirements of Regulation (ΕC) 1303/2013 for the Programming Period 2014-2020, as well as the experience from implementing the MCS 2007-2013, including the improvements carried out or deemed necessary in its context.