Brussels, 30/04/2013 (Agence Europe) - Greece is said to be well on track towards absorbing structural funds (56.1%), which places the country above the European average (49.9%), according to the latest quarterly report by the task force for Greece, published on Monday 29 April (see EUROPE 10837). This is a considerable move forward, hailed by European Regional Development Commissioner Johannes Hahn, at a time, as the report states, when “cohesion policy funds are a most valuable resource for investment”, during a severe and prolonged financial crisis in Greece. Its adds: “The government has continued to implement the programmes despite the negative impact of severe liquidity constraints notably on project implementation”.
The rate of absorption above the average of the EU27 is mainly due to the use of the European Regional Development Fund (ERDF), used at 60.6% compared to 51.05% on average in Europe, and to the Cohesion Fund, used at 55.16% compared to 42.06% on average in Europe, according to Commission figures. Only the European Social Fund is said to be lagging behind with 46.3% absorption rate (European average being 54.01%), leaving Greece behind two-thirds of the other member states that benefit from it. Commissioner Hahn considers, however, that these figures are on the whole “encouraging” and states he is “cautiously optimistic”, saying that “as concerns structural funds, even more can be done to reap their full benefits”.
He also gave assurances that “my colleagues in the services and I continue to work very closely with the Greek authorities to ensure that the full benefits of the structural funds are felt by ordinary people and businesses as they emerge out of this crisis”. Emphasis is particularly placed on the 181 projects contained in the priority list (reviewed at the end of March and left as they are). The commissioner explained that “these are projects identified as being key areas where EU investments will have a positive and meaningful impact on growth. But we are not looking for quick hits, we need long-term, sustainable growth providing jobs that last. This is the core objective of our funding”. At the beginning of March, 15 of these 100 projects had already been concluded, 70 of them have to be speeded up, 15 of them are in danger of not being completed in time and one has already been withdrawn. The task force believes that it is possible that 34 projects will be completed during the coming planning period, 2014-2020.
In its report, the task force notes that the number of “dormant” projects (without there being a call for tender within the six months following their approval) was reduced by almost half between July 2012 and January 2013 by reactivating or reducing the number of these projects from 924 to 467. Substantial efforts have also been made to relaunch the work of four motorway concessions that had been held up on many different occasions. A first raft of measures for simplifying the structural fund control and management procedures has being introduced over the last few months in Greece, in an effort to speed up project implementation and payment. By next summer, the work in this area should have been concluded (the same work is expected to be undertaken for the forthcoming 2014-2020 planning period by the end of June).
Nonetheless, the task force's report warns that, despite the increasing number of positive reports obtained, the country is not free from the risk of a disengagement of European money for several programmes at the end of the year. (MD/transl.fl)