EU chief, on Covid recovery tour, backs Greek stimulus

ATHENS: Greece became on Thursday the third EU country to secure the European Commission's approval for a recovery plan to be financed by the bloc's coronavirus rescue fund.

European Commission chief Ursula von der Leyen made the announcement on the third stop of a tour to highlight EU approval for packages presented by countries that have suffered severe economic fallout from the pandemic.

Financing is to come from an unprecedented 750-billion-euro EU fund that is to issue common bonds for the first time.

Athens is to receive 17.8 billion euros in direct grants, and 12.7 billion in loans.

"Our approval today is an important milestone for disbursement of 30.5 billion euros ($36.6 billion) over the next years," von der Leyen said after meeting with Greek Prime Minister Kyriakos Mitsotakis in Agora.

"Once the plan is approved by the European Council we will be ready to disburse the first funds in July," she added in reference to the EU body comprised of heads of state or government.

The commission chief was to fly to Denmark for a similar announcement later in the day, after visiting Portugal and Spain on Wednesday.

Greece, Portugal and Spain are among the Mediterranean countries that depend on tourism, which has suffered substantial losses during the pandemic.

The Greek economy contracted by 8.2 percent last year, and plans to spend 11.6 billion euros in 2021 to help businesses bounce back.

Last year, Athens provided 24 billion euros in aid.

The Greek stimulus plan "represents a challenge but also a big, big opportunity," von der Leyen said.

"The good thing today is that Europe and Greece are together in this endeavour."