As Greece’s Recovery and Resilience Fund (RRF) enters its final stretch, a government decision to redirect resources away from bank-channeled financing tools toward the Hellenic Development Bank is creating serious problems, leaving a number of fully eligible investment projects without funding.
According to a letter obtained by Oikonomikos Taxydromos, tourism industry executives have raised the alarm with both the Ministry of Finance and the Ministry of Tourism, warning that the reallocation is effectively pushing out investment plans that were already mature and ready to proceed. Banking sources told the publication that the number of approved investment plans is now nearly double the funds still available to be disbursed through the RRF via the banks.
The Harsh Reality
What makes the situation particularly painful is that many of the affected businesses didn’t just express an interest in investing, they had already spent real money preparing their applications: feasibility studies, technical consultants, energy assessments, and independent auditor fees, all of which are mandatory prerequisites for inclusion in the program. In other words, they already paid to participate, only to find themselves shut out.
This is not a matter of theoretical losses. These are real, already-incurred costs hitting businesses at a time of elevated operating expenses. Preparing an RRF investment file is a complex, time-consuming and resource-intensive process and the businesses that went through it did so in good faith.
The paradox is hard to ignore. The Recovery Fund itself encouraged businesses to move quickly, prepare their projects, and align with its priorities, including green transition, digital modernization, and sustainable investment. Now, a portion of those very projects is being left out, not because they failed to meet the criteria, but simply because the money has run out.
What Does This Means for Greek Credibility
This raises a broader credibility question. Greece’s “Greece 2.0” program amounts to roughly €35.95 billion and was designed to mobilize over €60 billion in investment by 2026. Tourism alone, a sector contributing over 20% of GDP and currently in an intense investment phase, is seeing billions directed toward upgrades and new infrastructure. The Recovery Fund leaving out projects that have already been evaluated and prepared sends a damaging signal, not just about this particular program, but about the overall reliability of Greece’s investment framework.
The government’s justification centers on the need to speed up absorption. With strict milestones and an August 2026 deadline, redirecting funds toward tools that can be deployed faster is seen as necessary. But this represents a fundamental shift in priorities, from choosing the best investments to managing the fastest ones. And that shift has real consequences.
