The Minister of Economy and Finance, Kostis Hatzidakis, participated yesterday and today in the Eurogroup and ECOFIN meetings in Brussels.

In the context of the ECOFIN meeting, the ministers approved the revised national plans submitted by Greece, Cyprus and Spain under the Recovery Fund. The revision of the Greek plan includes:

• The "My House II" program for the purchase of first homes with a subsidised interest rate.
• The 'Upgrade My House' program for the energy upgrade of houses.
• The program will finance 37,000 evening surgeries to reduce waiting times in the country's hospitals.
• Minor modifications to the description of some actions and milestones of the 5th payment request, submitted by our country on 20 December.
• It should be noted that this request concerns the disbursement of €3.13 billion (€1.35 billion from grants and €1.78 billion from loans), while the successful completion of the procedure, which is expected in the near future, will bring the total disbursements to Greece to €21.3 billion, representing 64% of its total allocation.

The Council also approved the European Commission's recommendations on medium-term fiscal structural plans for 21 member states, including Greece, as well as recommendations under the excessive deficit procedure for eight member states (Belgium, France, Hungary, Italy, Malta, Poland, Romania, Slovakia and France).

It is recalled that the medium-term program submitted by Greece foresees an increase in net primary expenditure of 3.7 billion for 2025, but the apparent overshoot of the 2024 budget targets creates conditions for further positive initiatives, in particular tax cuts, to be announced by the Prime Minister in the autumn at the Thessaloniki International Conference.

Mr. Hatzidakis said. The approval of the country's Medium-Term Fiscal Structural Programme confirms once again that our economy is treated with confidence in Brussels. Our country, proceeding with fiscal prudence and pro-investment policy, has all the prerequisites to climb even higher. On the other hand, the approval of the amendments to the Recovery Fund allows programs such as 'My House II', for which we have negotiated hard, to proceed with speed. While in a very short time the absorption of the Recovery Fund will have reached 64%.".

At the Eurogroup meeting on the economic challenges for the Eurozone over the next five years, Hatzidakis noted that it is now imperative for Europe to act quickly and focused on six key pillars:

• Finding resources to increase public investment, both at the national and European level.
• Deepening the Capital Markets Union and the Banking Union to mobilise more private investment.
• The establishment of a pan-European Deposit Guarantee Scheme.
• Reducing bureaucratic burdens on business.
• The adoption of substantial European initiatives to reduce energy costs.
• The adoption of an ambitious policy for a common European defense with corresponding financial and budgetary instruments.

In the discussion on the issue of dealing with rising energy prices, which took place in the context of the informal dinner hosted by the Polish Presidency, the Greek minister pointed out that a key source of the problem is the fragmentation of the electricity system and the absence of a truly single European market, which particularly affects the countries of Europe facing eastwards, as many studies have shown.

"The significant investments we have made in renewable energy sources are not enough," Hatzidakis said. "A more European approach should be taken to the planning of electricity networks, including the promotion of cross-border interconnections. We also need to encourage private investment, making use of the appropriate financial instruments. In addition, we should strengthen public investment by ensuring the necessary resources. And of course we should not exclude investment in natural gas, as is the case today, as it will clearly remain part of the energy mix for years to come, until it is fully replaced by renewable energy sources."

In this context, he referred to the proposals regarding the electricity market, the security of gas supply, and the regulation of emissions contained in the open letter of Prime Minister Kyriakos Mitsotakis to European Commission President Ursula von der Leyen.

The ECOFIN breakfast included a discussion on the economic impact of the war in Ukraine in the presence of the Ukrainian Finance Minister. It should be noted that on 10 January, financial assistance to Ukraine started to be disbursed under the G7 decision to provide a loan leveraging the windfall profits from frozen assets of the Russian Central Bank.

At the opening of the ECOFIN meeting, the Polish Presidency presented the priorities of its program, emphasising the crucial issue of European security.

Subsequently, the issue of simplification and reduction of administrative burdens was discussed in order to enhance the competitiveness of the European economy. In his intervention, Mr. Hatzidakis stressed that Greece is looking forward to the relevant legislative proposals of the European Commission, which are expected to be announced at the end of February, and that he is looking forward to constructive cooperation between the governments and all stakeholders in order to achieve positive results soon. "We have discussed this issue repeatedly, and we all agree that immediate and decisive action is needed. But it is crucial to move beyond theory, turning statements and commitments into tangible results. After 25 years of talking about it, it is imperative that we put it into practice!" the Greek minister said.

As part of the meetings, Hatzidakis had a bilateral meeting with his German counterpart Jörg Kukies, discussing a number of priority issues for the EU at the moment, including relations with the US.