The bill aims, among other things, to establish new support schemes and modify existing ones, introduce incentives for rapid licensing, and improve the process of evaluation and control.
In particular, there is a specific provision regarding the support of investment projects in areas of the country that face significant economic and demographic challenges, especially in border regions in the north of the country or areas where the per capita Gross Domestic Product (GDP) is 70% or where there is population shrinkage due to adverse economic and social conditions, as well as regions that have been affected by natural disasters.
The purpose of the related draft law is to adapt to the new needs of the Greek economy by introducing new regimes for the provision of incentives and support.
It foresees twelve support schemes for providing state aid to investment projects in sectors such as modern technologies, green transition and environmental upgrading of businesses, social entrepreneurship and craftsmanship, special support areas, agri-food – primary production and processing of agricultural products – fisheries and aquaculture, manufacturing and supply chains, business extroversion, tourism investments, alternative forms of tourism, large investments, European value chains, and 360-degree entrepreneurship.
The investments eligible for inclusion will involve tangible and intangible assets such as the creation of a new installation, expansion of production capacity, diversification of existing production into products or services, fundamental changes in the overall production process of products or services, and the acquisition of assets of a facility that has closed or would have closed if it had not been purchased. However, the acquisition of shares in a company is not considered an initial investment.
The types of support and incentives provided under the new Development Law include: tax exemption (i.e., exemption from income tax on pre-tax profits), grants (which consist of the free provision of funds by the state to cover part of the expenses of the investment plan), and financial leasing subsidies.
The leasing subsidy cannot exceed seven years, and the period starts from the completion date of the investment. Also, a subsidy for the cost of newly created employment is foreseen, with the public sector covering part of the salary costs of the new positions created and linked to the investment plan, for which no other state aid will be received. There is also financial support for business risk with interest rate subsidies on loans with reduced collateral or on high-risk loan insurance costs.
In addition, there is an incentive for fast licensing, especially for large investments and special support areas. The required permit or approval for project execution, installation, or operation of investments will be issued within two months, while the decision on environmental approvals will be issued within three months. At the same time, a provision for offering loans with the guarantee or support of the Greek State for investment plans of small and medium-sized enterprises (SMEs), which receive a decision for inclusion under the Large Investment Support Scheme, will be available.
These investment plans can obtain short-term loans against the grant or long-term loans for the implementation of the investment, with the guarantee of the Greek State from the Guarantee Fund (DeLFI GF) or alternatively from another supported financial tool of the Hellenic Development Bank. Large investment plans, whether belonging to large or small businesses, can apply for financing from the European Investment Bank (EIB) to obtain a loan with the guarantee of the Greek State.
The maximum amount of support cannot exceed €20 million for an individual enterprise and €50 million for a group of collaborating or connected enterprises. However, the maximum limits will be increased by 50% in cases where the support is provided in the form of a tax exemption.
Regarding the provision for SMEs, the included business plans may also be supported for consulting services for SMEs, innovation, procedural and organizational innovation, energy efficiency measures (except for energy efficiency measures in buildings), efficient resource use, and support for the transition to a circular economy.
For the co-production of high-performance energy from renewable energy sources and the production of energy from renewable sources, for the remediation of environmental damage, restoration of natural habitats and ecosystems, for the protection or restoration of biodiversity, or the application of nature-based solutions for climate change adaptation and mitigation, for vocational training, for the installation of efficient district heating and cooling systems, and for the employment of disadvantaged workers and workers with disabilities.
