Greece requests third Recovery Fund tranche with a five-month evaluation

The Greek government requested on Tuesday (16 May) the disbursement of the third tranche of its EU Recovery Fund, with the European Commission agreeing to an exceptionally long five-month period to evaluate the request.

The request – and the consent of the EU executive to extend the evaluation period from the normal two months to five – comes just days before the Greek elections on Sunday, fuelling concern over whether a government will be able to be formed next week.

“The government and the EU Commission agreed the evaluation of the request to take place within five and not two months,” a source close to the matter told EURACTIV, adding that the EU executive allows this extension only in “extraordinary circumstances”.

EURACTIV understands that the Greek government’s request for a five-month evaluation – which comes only days before a hotly-contested national election – indicates that it may not be possible to form a government after Sunday’s vote.

The ruling conservative New Democracy party (EPP) on Tuesday submitted a request to the European Commission for the disbursement of the third 1.72€ billion tranche of the Recovery and Resilience Facility, known as Recovery Fund, a source familiar with the issue told EURACTIV.

The same source added that the third tranche concerns grants and not loans, in other words, funding that does not need to be paid back.

On 21 May, Greece will hold national elections with several analysts projecting a deadlock to form a coalition government. New Democracy has so far been leading all polls published on national media.

According to EuropeElects, which provides the average of national polls, New Democracy could get 36.6% of the vote in the first round, followed by Syriza at 29.5% and Pasok at 10.3%.

Greeks brace for post-election uncertainty amid polls row

Greeks are casting their ballots on 21 May in one of most unpredictable national elections in years, with the formation of a new government uncertain and the leading politicians bickering over the credibility of current opinion polls that favour the ruling conservatives.

But another poll conducted by multinational companies operating on the Athens stock exchange found that the ruling New Democracy will be in a neck-and-neck race with main opposition leftist Syriza with the difference between them being 0.5%.

If parties do not manage to form a government next week, a second round of elections will be held on 2 July.

The reforms included in the country’s national Recovery Plan are considered crucial for the economy’s growth and EURACTIV was informed that a number of reforms are still pending, including the new system of public procurement.

The governor of the Bank of Greece, Yannis Stournaras, said the primary task of the next government should be carrying out the necessary reforms as well as returning to fiscal discipline to get rid of the “junk status” investment grade.

Greek central banker reminds politicians of investment grade priority

The primary task of the next government should be carrying out the necessary reforms as well as returning to fiscal discipline to get rid of the “junk status” investment-grade, the governor of the Bank of Greece, Yannis Stournaras, said ahead …

(Sarantis Michalopoulos | EURACTIV.com; Edited by Zoran Radosavljevic)