Pillars & Components
Total investment resources mobilised by RRF
Pillars and Components |
RRF Budget |
Mobilised |
1. Green transition |
(million €) |
(million €) |
1.1 Power up |
1.200 |
2.348 |
1.2 Renovate |
2.711 |
5.225 |
1.3 Recharge and refuel |
520 |
1.305 |
1.4 Sustainable use of resources, climate resilience and environmental protection |
1.763 |
2.726 |
Total Resources Pillar 1 |
6.194 |
11.604 |
2. Digital Transformation |
(million €) |
(million €) |
2.1 Connect |
522 |
582 |
2.2 Modernise |
1.280 |
1.280 |
2.3 Digitalisation of Businesses |
375 |
475 |
Total Resources Pillar 2 |
2.177 |
2.337 |
3. Employment, skills and social cohesion |
(million €) |
(million €) |
3.1 Increasing job creation and participation in the labour market |
776 |
776 |
3.2 Education, vocational education and training, and skills |
2.311 |
2.395 |
3.3 Improve resilience, accessibility and sustainability of healthcare |
1.486 |
1.486 |
3.4 Increase access to effective and inclusive social policies |
611 |
611 |
Total Resources Pillar 3 |
5.185 |
5.268 |
4. Private Investments and Transformation of the economy |
(million €) |
(million €) |
4.1 Making taxes more growth friendly and improving tax administration and tax collection |
187 |
215 |
4.2 Modernise the public administration, including through speeding up the implementation of public investments, improving the public procurement framework, capacity building measures and fighting corruption |
189 |
189 |
4.3 Improve the efficiency of the justice system |
251 |
464 |
4.4 Strengthen the financial sector and capital markets |
21 |
21 |
4.5 Promote research and innovation |
444 |
612 |
4.6 Modernise and improve resilience of key economic sectors |
3.743 |
7.233 |
4.7 Improve competitiveness and promote private investments and exports |
5 |
5 |
Technical assistance |
40 |
40 |
Total Resources Pillar 4 |
4.880 |
8.779 |
Sum of Grants |
18.435 |
27.988 |
Loans |
12.728 |
31.819 |
Total investment Resources |
31.163 |
59.807 |
- 1. Green Transition
- 2. Digital Transformation
- 3. Employment, Skills and Social Cohesion
- 4. Private Investment and Transformation of the Economy
The main objective of Power up is to promote the green transition aiming to increase the share of renewable energy sources (RES) in gross final energy consumption, improve energy efficiency in houses and businesses and reduce greenhouse gas (GHG) emissions.
The reforms and investments included in the component aim to:
• Contribute to the climate and energy plans, through improving energy efficiency and digitalise e- monitoring of energy consumption, including the installation of smart meters, electricity interconnections between the islands and the mainland and in particular the connection of the Cyclades Islands to the mainland’s grid, (reducing energy costs and ceasing fossil fuels based power production),
• Enhance the network capacity and its operation to enable the penetration of RES as well as storage facilities able to accommodate higher shares of RES power generation,
• Contribute to an enhancement of the energy supply security and foster the optimum operation of the energy markets.
• Ensure financial stability and long-term sustainability of the RES-CHP Account, which constitutes a main source for remuneration of the operating RES producers.
• Promote Greece’s national target of total lignite phase-out by 2028 and phase out from fossil fuels, by introducing integrated support measures, including socio-economic and environmental rehabilitation measures, for the redevelopment of affected areas, thus ensuring a just transition.
The main objective of Renovate is to help reduce CO2 emissions and enhance climate “neutrality” of urban areas, as well as to facilitate the climate adaptation objectives related to the cities and their buildings stock’s climate resilience.
The actions included in the component provide incentives for building renovations and energy efficiency upgrades resulting in the regeneration of urban areas, the attraction of private investment and energy poverty mitigation. Moreover, they will contribute, directly and indirectly to the development of the national economy, by promoting investments in the construction sector, industry and urban environment, the creation of new employment opportunities and the sustainable growth of multiple sectors and the attraction of sustainable private capital flow. In addition, they will facilitate the green transition, contribute to the national and EU climate objectives linked to the reduction of GHG emissions, and overall improve the cities’ resilience to climate change. The component includes reforms and investments that promote the renovation and energy upgrade of buildings and the implementation of urban planning.
More specifically:
• Ιnvestments for the renovation of the existing stock of buildings, including residential, commercial, industrial and public buildings as well as social infrastructure aiming at their energy efficient upgrade, and implementing a new action plan to tackle energy poverty.
• In the area of urban planning, the improvement of the urban ecosystem through the reform of the urban policy framework and the promotion of sustainable growth projects.
The main objective of the component 1.3. is to promote green transition, aiming to structure and coordinate efforts to make urban mobility cleaner and sustainable. The component includes reforms and investments that aim at:
• Promoting cleaner, smarter and cheaper forms of public and private transport, through the replacement of old, high-emission, buses with electric ones and providing incentives for the use of battery electric vehicles.
• Supporting the installation and operation of 8000 Electric Vehicle (EV) charging points in key urban and suburban locations and other publicly accessible points of interest across the country.
• Promoting investments in industrial production units in innovative fields and technologies related to e-mobility, as well as carbon capture and storage, that will establish the required infrastructure in cities and other publicly accessible points of interest.
• Facilitating the Digital transition by introducing the design and implementantion of new technologies and supporting innovation.
The main objective of the component 1.4. is the promotion of the green transition, through alignment with the principles of circular economy, efficient use of natural resources, climate change adaptation and mitigation via protection of the natural environment.
The component includes three sets of actions, – reforms and investments- that promote climate a complete framework in line with all six objectives of the “EU Taxonomy Regulation”:
• The first set of actions contributes to waste management, following the principles of waste hierarchy and circular economy; and the protection of water resources, including water saving actions, the installation of digital meters and telemetry – remote control systems, the construction of infrastructure for water management and wastewater treatment and the introduction of reforms that promote efficient and sustainable use of water resources.
• The second set of actions aims to protect the environment, through reforestation initiatives and actions for the protection of biodiversity. More specifically, the component includes the restoration of more than 16,500 hectares of degraded forest ecosystems in Greece, contributing significantly to the National Reforestation Plan.
• The third set of actions, focuses on enhancing and upgrading the capabilities of Greece’s civil protection mechanism; and aims to address challenges related to climate change, as Greece is seriously affected by the increasing severity and frequency of climate related disasters and extreme events.
The main objective of Connect is to cover ground in very-high-speed connectivity, through transition to 5G technology, achieve Greece’s gigabit society targets and improve its digital competitiveness.
• The implementation of investments,
• the installation of fibre optic infrastructure,
• the development of 5G networks covering all major Greek highways and
• the utilisation of space technologies and applications by developing a constellation of small-satellites.
The reforms institute the framework needed to facilitate the switch to fast broadband connections and the transition to 5G technology expected to:
• improve Greece’s position in the international ranking of broadband connections,
• facilitate the development of innovative remote services.
All in all the implementation of this component will generate significant spill-over effects across the society and economy, including job creation, new and better investment opportunities for the industrial sector, and higher efficiency and productivity both for citizens and businesses.
The component aims to modernise the public administration by improving its operational model, and achieving provision of high-quality services to citizens and businesses.
Reforms and investments target:
• the digital transformation of the organisations of the public sector, including the digitisation of archives and enhanced digital services;
• business process improvements accompanied by the incorporation of modern IT systems;
• increased interoperability between systems and data;
• wide-ranging cybersecurity and data governance strategies and policies;
• extended use of advanced technologies, such as cloud computing and big data.
Apart from reducing the administrative burden, full implementation of the plan across the public sector – central, regional and local government entities – will foster widespread adoption of digital technologies and therefore enhance government accountability, social inclusiveness and partnerships by creating a data-driven culture in the public sector.
The main objective of component 2.3. is to raise awareness and practically increase the adoption of digital technologies by businesses, in particular small and medium enterprises, in order to expand their digital presence, make use of digital channels addressed to a unified market and increase their resilience to unpredicted crises. It also aims to facilitate and make more transparent the interaction between businesses and state authorities while in parallel supporting green transition.
The reforms and investments of this component will tackle the key challenges of digital inclusion, including the lack of awareness about the benefits of digitalisation and knowledge about how to adopt digital technologies. The initiatives will facilitate the creation of the appropriate digital business ecosystem.
They will also support SMEs in obtaining:
• digital services (digital sales, payments, AI, cybersecurity, etc.),
• industrial data platforms and data spaces, and
• new technology cash registers and point of sale (POS) terminals.
The actions of this component interact with the one-off tax credits for investments that contribute to the digitalisation of businesses.
The main objective of component 3.1. is to introduce labour market policy interventions enhancing growth and job creation, improving job quality, strengthening economic and social resilience, promoting labour market inclusion and reducing inequalities, poverty and social and economic exclusion.
Specifically, through a cohesive and targeted intervention involving the modernisation and simplification of the Labour Law, the activation of cutting-edge Active and Passive Labour Market Policies (ALMPs & PLMPs) and the digitalisation of employment and relevant public administration services, the component will significantly promote growth, job creation and economic and social resilience.
Τhe main avenues through which the component will pursue its objectives include, but are not restricted to:
(a) labour market reform, upgrading the market’s ability to create jobs and increasing its resilience in the event of shocks;
(b) incentives-compatible, state of the art Active and Passive Labour Market Policies, enhancing labour market activation, job creation and safety nets against unemployment; and
(c) digital transformation of Employment services.
In a nutshell, the component puts in place labour market reforms and actions incentivisiing higher long – term employment and labour productivity,ultimately delivering higher incomes, enhanced welfare and reduced inequalities.
The main objective of the component 3.2. is to increase long-term employment and productivity through the enhancement of human capital.
To that end, the component includes reforms at all levels of education, integrating new skills, new methodologies, evaluation of the system, autonomy and relevance/extroversion towards the local and international community and economy. Due to the increase in the economy’s output, and as a result of its design, the component will also reduce inequalities, poverty and the risk of economic and social exclusion.
Regarding education, the component includes:
• investments in digital transformation and digitalisation of all levels of education;
• reforms in University education, enhancing research performance, quality of education (including direct relevance to the job market), and international visibility and extroversion, increasing graduates’ prospects in the Greek and the European labour market.
Regarding skills, the component includes:
• a flagship reform of the governance of upskilling provision which, based on an incentives-compatible remuneration system, promotes adoption and scaling up of best practices, resulting in systemic improvement of the lifelong learning system and labour market outcomes.
Regarding vocational education and training:
• Reforms increasing the appeal and labour market effectiveness of vocational education training (VET) for young people;
• a forward-looking overhaul of the dual apprenticeship system;
• a major reform (closely aligned with the reform on governance) of the contents and delivery of the skilling, reskilling and upskilling programmes offered by the public employment service (OAED).
• Investments in digital systems, laboratory equipment for VET training units and OAED units, and a targeted programme of buildings’ refurbishment/upgrade will strengthen and accelerate the reforms’ benefits.
The main objective of the component 3.3. is to intervene in selected areas of the healthcare system to ensure equal access to high quality health services introduce, digital transformation of health services and safeguard the system’s financial sustainability.
The reforms and investments included in the component aim at:
• redesigning the overall health system through effective organisational reforms;
• optimising the utilisation of financial resources and creating a quality framework;
• reforming the primary health system by introducing effective gatekeeping functions; and
• reorienting health services to prevention and promotion of health.
These objectives will be supported by the digital transformation of health, along with the development of a patient-centric health care system and investment in health infrastructure. Additionally, the component includes the reform of the clawback system and the acceleration of investments in the Health sector.
The main objective of the component 3.4. is to provide equal opportunities for all, irrespective of gender, ethnicity, sexual orientation, age, disability, and other characteristics.
To that end, the component includes reforms and investments whose target it to:
• Ensure the social inclusion of vulnerable population groups by means of (a) promoting economic activation, through the provision of training, education, and apprenticeship opportunities; and (b) ensuring access to effective and high-quality social services.
• Reduce poverty, inequality, and the risk of social and economic exclusion through the provision of effective safety nets, comprising of new and updated quality social services.
• Put in place early childhood interventions to secure children’s and young families’ potential and economic/social prospects.
The main paths through which the objectives of the component will be achieved include:
• social benefits optimisation;
• reform of early childhood care, including special interventions for children with disabilities, cognitive and developmental disorders;
• enhancement of structures providing social assistance services and the promotion of actions targeted towards labour market (re)integration of the most vulnerable population groups;
• digital transformation of the social protection system; and
• diversity training in both the public and the private sector to fight discrimination of all forms;
• enhancement of structures that can actively support female labour market participation.
The main objective of the component 4.1. is to increase the effectiveness, efficiency and and equality of all taxpayers by increasing tax revenue efficiency and strengthening fiscal compliance, while at the same time, it seeks to combat tax evasion and avoidance and aggressive tax planning as well.
The reforms and investments included in the component promote:
• the complete codification of tax legislation so as to increase transparency
• the creation of a new framework aiming to combat smuggling in products subject to excise duties (tobacco, alcohol and energy)
• the adoption of additional measures and incentives so as to further increase electronic transactions
• the implementation of a digitalised and automatic VAT electronic refund procedure
• the introduction of new-technology cash registers across the country
• an ambitious project to implement artificial intelligence in the design of tax audits
• the further digitalisation of the Independent Authority for Public Revenue.
The main objective of the component 4.2. is the implementation of reforms in selected areas of public administration and public financial management that are of particular importance for strengthening both public and private investment.
The reforms and investments included in the component have three main objectives:
1. to increase transparency and fight corruption. This will be done via:
• strengthening the legal framework for Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT);
• combatting illicit trade and protecting intellectual property rights through the reinforcement of the Intaragency Unit for Market Control; and
• the creation of an integrated IT system for the management of controls and the establishment of control stations to intensify audits.
2. to modernise the Public Financial Management (PFM) framework and better prepare the staff of the public procurement domain. This will be done via:
• processes’ optimisation and implementation of a Government Enterprise Resource Planning System (GOV-ERP) to support the fiscal and financial management of the Central Government and other General Government agencies,
• the modernisation of the institutional framework of State Owned Enterprises (SOEs)
• electronic Invoicing,
• the digital transformation of the Deposits and Loans Fund is sought in order to substantially enhance its efficiency and create additional value for the various interest groups.
3. to enhance the efficiency of public investment through extending the digital capacity of decentralised State aid units, as well as updating the legal framework for State aid, to foster policy planning and coordination.
The main objective of the component 4.3. is to increase the efficiency of the justice system. It includes four dimensions:
Firstly, accelerate i.e. a set of reforms aimed at speeding up justice (special sections, JustStat, changes in the organisational structure of the courts) but also at the same time increasing its efficiency, creating a sense of trust among the citizens of the country for the proper functioning of the system through its rationalisation.
Secondly, digitalise i.e. e-justice (upgrading of record keeping systems, extension of information systems and skills and digital skills for judges and judicial staff).
Thirdly, upgrade infrastructure i.e. targeted investments in buildings and the creation of an electronic register of structures.
Fourth, revise the curriculum of the National School of Judges and the National School of Public Administration with the ultimate aim of modernising the training provided and enhancing the acquisition of new skills necessary for the Judiciary and judicial officials following international good practice through a fully Justice-related skills program. The programs will mainly concern digital skills, while at the same time leadership, project management, and other skills will be included.
The main objective of the component 4.4. is to address private indebtedness and strengthen capital markets.
The reforms included in the component aim at:
• addressing private indebtedness. The passage of the single insolvency framework through parliament, a major reform, is followed by additional implementing acts that need to be adopted. Furthermore, a monitoring registry for private debt, the development of a public credit bureau, as well as a credit expansion observatory, will all serve to fill some of the informational gaps that currently impede the successful flow of credit and the monitoring of risks. At the same time, the implementation of the private debt monitoring strategy will ensure, inter alia: the removal of asymmetric private debt information, the protection of vulnerable groups of individuals and businesses, the acceleration of non-liquidation or individuals heading for bankruptcy but also the creation of a system that will allow the monitoring and the smooth and timely settlement of private debt issues in the financial system.
• Promoting the drastic digital modernization of Greece’s capital markets . This will be achieved through the codification of the capital market framework and the revision of relevant laws and regulations, as well as the update of its information systems.
The main objective of the component 4.5. is to increase public and private spending on research and development (R&D), promoting investment in R&D, strengthening the links between science and businesses, and developing world-class cutting-edge R&D infrastructure.
Through the implementation of these reforms, the component will contribute to enhance the links between academia and the productive sector and transform the Greek industry into a highly competitive player, increase intellectual property (IPR) exploitation, reverse ‘brain drain’, boost the Greek innovation ecosystem of start-ups, and mobilise R&D spending by enterprises.
The reforms and investments implemented through this component aim at:
• strengthening the link between science and business. This is done through a reform that increases the extroversion of the Greek ecosystem or through the European HORIZON program that promotes the cooperation of R&D ecosystems with other countries, or through the Elevate Greece platform for the emergence of newly established R&D companies.
• promoting public and private investment in R&D. Proposals include additional support of the existing Research-Create-Innovate scheme to promote innovative ideas, the creation of a program to fund basic research in areas of significant growth. They also include upgrading the infrastructure of the country’s research centers, creating a new generation of technology parks to develop collaborations between the academic research and business environment. Finally, the development of an information system that will inform the authorities in real time for physical phenomenas and natural disasters will be an innovative system for civil protection.
The main objective of the component 4.6. is to improve the competitiveness, productivity and resilience of key economic sectors, namely tourism, culture, agri-food , manufacturing and aquaculture, as well as improve national transportation, logistics infrastructure and promote the export orientation of the economy.
The component includes reforms and investments aiming at the following key economic sectors:
Culture – Tourism
For culture,
• Improvement of the quality of services provides by the ODAP stores through upgrade of the infrastructure and equipment of stores.
• Restoration of the country’s monuments and renovation of emblematic buildings for cultural use.
• An ambitious reform focused on defining the professional qualities and outlines for professionals in the art creation industry and measures to support the better integration of these professionals into the economy.Training for building new skills for culture and creative professionals.
• Modernisation of the curricula of the higher state schools of art education.
• Along with the criterion of the silver economy and ensuring equal access of the elderly to the places of culture, a program of accessibility of infrastructure and the creation of programs for the specific age group is described.
For tourism:
• A systematic promotion of thematic and alternative forms of tourism (mountain, gastronomy, wellness, maritime tourism etc) to diversify the Greek tourism portfolio, reduce seasonality and increase revenues
Agri-food
The component supports investments and reforms that promote efficient production methods and initiate the digital transformation of the sector:
• Promotion of efficient production methods, shifting the production model towards increased quality and competitiveness of Greek products,
• Endorsement of research and innovation in the sector with the aim to strengthen of market orientation and raise the ability to penetrate international markets.
• Introduction of digital technologies to modernize production and enhance differentiation of the final product, while reducing the sector’s climate impact.
Manufacturing
The investments and reforms aim at accelerating the Industry 4.0 transformation agenda and promoting smart and green manufacturing in Greece. More specifically they will:
• Promote the development of new or the upgrading of existing production line to improve industry competitiveness with an emphasis on advanced and digitally controlled industrial equipment, production control systems and development of industrial partnerships to enhance production output and to assist the collaboration within the industrial ecosystem.
• Also, special emphasis lays on the green elements of the industry transformation, including energy saving in industrial facilities, recycle and reuse of industrial wastes and utilisation of green energy.
• Development of new generation industrial parks.
Infrastructure
• Promoting the digital transformation of the sector and the smartification of infrastructure in order to develop high quality, multimodal, climate- resilient, smart and sustainable transport systems.
The main objective of the component 4.7. is the promotion of private investment which is crucial for the recovery of the Greek economy and for the closing in of its sizable investment gap as well as for the improvement of its competitiveness in order to address external sector.
The component’s reforms and investments aim at:
• the provision of financial incentives to private investment. Through these policies, the loans from the RRF will be used in order to promote investment with eligibility firmly grounded on economic foundations, including the green and digitalising a series of reforms which improve business environment, reduce bureaucracy and administrative cost, increase the average size of Greek companies, and lead to a stronger orientation of the economy towards exports.
• regulatory and legislative interventions to simplify institutional framework and the business environment in general, along with digital transformation of structures and tools of public administration.