€4.2 Billion Boost for Greek SMEs through Recovery Fund

A powerful injection of €4.2 billion is breathing new life into Greek small and medium-sized enterprises (SMEs)through the Recovery and Resilience Facility (RRF), as part of the national plan “Greece 2.0”. According to a detailed analysis by Alpha Bank, this substantial support package consists of:

• €2.8 billion in low-cost loans, and
• €1.4 billion in non-repayable grants.

Yet, despite the financial lifeline, a persistent challenge remains: Greek SME productivity continues to lag dramatically behind. In fact, as Alpha Bank points out, SME productivity in Ireland is five times higher than in Greece, underscoring deep-rooted structural issues.

Funding Aimed at Competitiveness and Modernization

The Recovery Fund has emerged as a crucial tool for driving growth, innovation, and sustainability in the SME sector. Key highlights of the support:

• 265 SME loan contracts have been signed, representing 55.4% of all agreements under the RRF loan pillar, totaling €2.79 billion.
• An additional €1.4 billion in grants is being directed toward strategic sectors, such as:
  • Digital transformation
  • Energy efficiency
  • Research and innovation

These investments aim to enhance long-term resilience and help SMEs adapt to the green and digital transition.

The Productivity Dilemma

Despite the capital infusion, productivity levels remain a critical weakness. Structural deficiencies, including limited technological adoption, low export orientation, and a fragmented business landscape, are holding back competitiveness.

“Greek SMEs need more than just funding — they require a strategic shift in mindset, investment in human capital, and targeted reforms to catch up with their European counterparts,” the report concludes.

While the Recovery Fund provides vital support and momentum, bridging the productivity gap with the rest of Europe will require deep, long-term transformation. The coming years will be critical for Greek SMEs to capitalize on this historic opportunity.

Source: pagenews.gr