“Critical Negotiations for ‘Greece 2.0’: Risk of Losing Recovery Fund Resources”

Urgent Revision of “Greece 2.0”

With the Recovery Fund deadline approaching in September 2026, the Greek government is in a race against time to avoid losing vital European funds. Negotiations with the European Commission (EC) for a new revision of the “Greece 2.0” plan start today.

A total of 194 milestones (182 for grants, 12 for loans) are under review, with the goal of rephrasing or replacing targets deemed unachievable within the remaining timeframe.

Absorption Rates and Risks

Out of €36 billion allocated to Greece, only €10 billion (€5.7 billion grants, €4.3 billion loans) has reached final beneficiaries. The Deputy Governor of the Bank of Greece, Theodoros Pelagidis, warned of the serious risk of under-absorption.

Following a June revision approved in Brussels covering 108 milestones, the new round focuses on simplifying the 194 remaining milestones to secure the last tranche of the Recovery Fund. Projects unlikely to meet deadlines may face exclusion.

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Key Projects and Sectors Under Scrutiny

Projects under close evaluation include:

• Digital initiatives at risk of delays
• The Northern Crete Road Axis (BOAK)
• Pumped-storage facility in Amfilochia
• Social exchange programs
• Reform of the Hellenic Railways Organization (OSE) and health sector projects, including the personal doctor initiative
• Investment programs for battery installations

The aim is to identify delayed projects early and secure alternative funding through other EU funds, NSRF programs, or the national public investment program.

Disbursement Timeline

Upcoming Recovery Fund disbursements are:

• 6th request: €1.8 billion (loans)
• 7th request (Nov 2025): €3.5 billion (€1.7 billion grants + €1.8 billion loans)
• 8th request (Q1 2026): €1.87 billion (€1.5 billion grants + €370 million loans)
• 9th and final request (Aug 2026): €5.4 billion (€3 billion grants + €2.4 billion loans)

Decisions made during these negotiations will determine the fate of numerous projects and directly impact the efficient absorption of Recovery Fund resources before the fund’s expiration.