€2 Billion Investment Surge: Greece’s Development Law Reignites Industrial Momentum

Greek investment activity is regaining depth and durability, with nearly €2 billion in projects already approved under the country’s revamped Development Law, signaling a decisive shift toward production, exports and regional rebalancing as Recovery Fund stimulus begins to taper off.

The early data point to a renewed appetite for capital deployment among Greek businesses, at a time when policymakers are seeking to anchor growth beyond one-off EU funding and toward a more structural, investment-led expansion.

According to government sources, the third cycle of Manufacturing and Supply Chain incentives and the first cycle targeting Special Support Regions alone have attracted 361 investment proposals worth approximately €1.5 billion, currently under evaluation.

Manufacturing has clearly emerged as the backbone of the new investment wave, reinforcing Athens’ strategic pivot toward higher value-added sectors and greater resilience to external shocks.

Tourism and regional rebalancing gain traction

Tourism remains a powerful investment magnet, with 188 projects totaling €626.5 million, concentrated mainly in the South Aegean and Crete. Notably, the emphasis has shifted away from capacity expansion toward upgrading infrastructure and service quality.

At the same time, border and less-developed regions are beginning to draw investor interest, as the redesigned framework aims to correct long-standing geographic imbalances in capital allocation.

Over €1 billion set to flow into the economy

Officials estimate that the completion of current evaluation rounds will unlock more than €1 billion in funding over the next three years, a figure expected to rise further as the first regimes under the 2025 Development Law come online.

The policy objective is clear: to establish a predictable, fast-moving incentive system that operates alongside—not in place of—EU funding instruments, ensuring continuity once Recovery Fund projects conclude.

The next test: execution and credibility

2026 is shaping up as a pivotal year, with new incentive schemes planned for agri-food, exports, advanced technologies, social investment, defense, manufacturing and niche tourism.

The real test, however, lies beyond headline figures. Investors will be watching closely whether approvals translate into timely execution—and whether Greece can finally overcome the bureaucratic delays that historically undermined the credibility of previous development frameworks.

In an environment marked by geopolitical risk and tightening financial conditions, Greece is attempting to convert its current investment momentum into sustained economic transformation. The new Development Law is the first major stress test of that ambition.

Source: pagenews.gr