Attracting major investments
Gov’t announces a series of measures and incentives to change the production paradigm
The redesign of the investment incentives law, both in terms of the business sectors that are strengthened and in terms of incentives, as well as the redistribution of resources, is at the heart of the interventions the government announced on Monday in its effort to transform Greece’s production model.
The emphasis will now be mainly on manufacturing and in border areas, as well as in Thessaly following any measures that have been taken after Storm Daniel, while a big challenge is the completion of the procedures (submission, evaluation, approval) within tight and binding schedules.
At the presentation at the National Gallery in Athens, Development Minister Takis Theodorikakos also announced the activation of the Governmental Committee for Industry (including ministers and representatives of the country’s industrial associations) that was established in 2020, but without being particularly active.
As announced, absolute priority is given to the regime of large investments that will be innovative, use modern technology and be implemented with a low energy footprint. Large investments of more than 10 million euros will receive aid in the form of tax exemption, with the budget of the measure amounting to €150 million.
A special regime for General Entrepreneurship in Border Regions and Thessaly of €150 million is established in the development law for investments that will be developed in the border regions of more than €1 million.
All large investments over €10 million and investments in border areas are assessed as strategic investments. For the development of these investments, additional incentives for rapid licensing and zoning will be provided.
To facilitate the financing of large investments, a Guarantee Fund of €300 million is being created in collaboration with the European Investment Bank, which will lead to leverage of €1.5 billion.
Another €150 million will be given to the “Processing” regime of the development law, half in subsidies and half in tax exemption.
