NEW DEVELOPMENT LAW Greece 2.0 / 2022

SUBSIDY up to 70 – 80% of the Budget Up to € 10,000,000 Subsidy for each investment From the 1st Quarter of 2022 / Submitted to the Parliament on Friday 14/01/2022. The meeting is expected on 18/01 and the procedures in the Official Gazette of the Law and other procedural regulations until the end of February.

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The new Development Law Greece 2.0 is expected to enter into force at the end of February 2022. By then, the European Union is expected to vote on the new regional aid map for all member states, at which time the increased percentages and amounts of subsidies in Greece.

Also, the new Development introduces twelve new aid schemes, which will allow the business community to design, develop and implement its initiatives with significant and modern forms of investment in all sectors of the Greek economy.

Three fixed cycles for investing will be included. This means that the interested investors will know exactly how long they will be able to submit their plans in the respective regime of the law, claiming the foreseen aid. This will be done for three consecutive months (for example January, February, March) and the next one (eg April) will be out.

Meanwhile, the Regional Aid Charter (SEA), which is taken into account in the Development Law, is changing, with its percentages moving at higher levels than the current ones. The SEA identifies the areas of a Member State that are eligible for national regional investment aid, based on EU rules. on State aid. In it, it is mentioned per prefecture Regional Unit of the place of installation what is the maximum intensity of regional, investment aids.

Aid / Subsidy Rates

It is noted that the state aid of regional character for the period 2022-2027 will be increased up to 25%, in relation to what is in force today.

With the new data, the Subsidy Rates will be, potentially, up to 60% for large companies, 70% for medium and 80% for small.

The above are set out in the regional aid guidelines, which set out a framework for state aid compatible with the internal market, announced by the European Commission and valid until the end of 2027.

In view of important changes that are imminent at both European and national level, with the introduction of the new Regional Aid Charter, the implementation of the National Recovery and Sustainability Plan and the directions of the new Programming Period 2021-2027, the need for substantial reform becomes imperative. of the regulations of the Development Law in order to reflect the new goals and the new strategic directions for the Greek economy, as defined in the Development Plan and the National Plan for Recovery and Sustainability.

The Development Law Greece 2.0. Following the formulation of the new development goals and policies, it tries to include the necessary reforms in the investment sector in order to be an effective and clear legal framework for the implementation of significant and modern form of investments in our country. A framework that promotes, attracts and facilitates the implementation of private investment in modern sectors of the economy.

To effectively deal with the utilization of the new aid schemes by the business community of the country.

And of course to contribute, in combination with other forms of private investment financing, to the faster transition of the Greek economy to a new model of growth, attracting investments that will promote beyond general entrepreneurship, digital and technological modernization, research and innovation, green and the digital transition of businesses, the creation of more and more specialized jobs, and more generally the increase of the investment capital of the economy along with the improvement of its international competitiveness.

Key points of the new development Greece 2.0 are:

· The grant for each investment will reach even 70% to 80% of its budget (depending on the negotiations in the EU). Percentage much higher than what was in force in the last development law, which reached up to 55% and only in a few cases such as in Agro-nutrition and Informatics (12 categories) and up to 3m €. The rest received 70% of the subsidy. Something that was tragic and a perception of the Syriza government that was against entrepreneurship and private investment.

· The maximum amount of the subsidy will reach 10 million euros per investment. The significant increase in aid will enable entrepreneurs to make much larger investments, compared to the past, benefiting from the new development law.

· New aid schemes are introduced, which will allow investors to design, develop and implement innovative ideas in all sectors of the Greek economy.