The Recovery Fund is entering today’s cabinet meeting agenda, as the €36 billion program that shaped the course of the Greek economy over the last five years enters its final and most critical phase.

Deputy Minister of National Economy and Finance Nikos Papathanasis is expected to present to the prime minister the roadmap through the end of the program, following the dual €2.6 billion disbursement request submitted yesterday. The package concerns €1.4 billion from the 8th request of the grants component and €1.2 billion from the 7th request of the loan component.

At the same time, the government is trying to “lock in” the final payments before the official conclusion of the Recovery Fund in September.

100-day “sprint”

Today’s presentation at the cabinet meeting carries particular weight, because it reflects not only what has already progressed, but also how narrow the time margins have become. The program milestones must be completed by August 31, as September marks the “moment of truth” for the entire program. At that point, the 9th grants request is planned to be submitted, amounting to €3.8 billion, on the condition that 134 milestones have been completed. At the same time, the 8th request of the loan component will also be submitted, with the total package at that stage reaching €4.8 billion.

Specifically, the next steps toward the completion of the Recovery and Resilience Fund are outlined as follows:

• On May 25, the 8th grants payment request and the 7th loan payment request were submitted.
• Friday, May 29, is the final date for contracting Recovery Fund business loans.
• Monday, May 31, is the deadline for inclusion in the “My Home II” and “Upgrade My Home” programs.
• On August 31, the deadline for completing all milestones and for the final signing of contracts for “My Home II” and “Upgrade My Home” will expire.
• By September 30, the submission of final payments for the closure of the Recovery Fund is expected.

Difficult transition

However, the undertaking carries risks. The goal is for the Recovery Fund to close without gaps or implementation failures in the milestones, which could lead to loss of resources or even financial penalties for the country. Based on the Fund’s strict rules, any failures could have significant fiscal costs, making the final stretch even more critical.

In practice, however, the cabinet meeting will also serve as a preview of the planning for the next day. Since from September onward there will no longer be a Recovery Fund, the major challenge that arises is how the flow of financing to the real economy will be maintained.

Since November 2025, Athens had already negotiated and achieved an agreement at ECOFIN for a bridge plan toward the next period. In addition to the new National Development Program 2026–2030, the new Social Climate Fund, and the new NSRF 2028–2034 currently being prepared, the Greek Development Bank will play a central role in the new financing model. The bank finances very small businesses with up to 10 employees at a rate of 72%, businesses that struggle to gain access to funding. An amount of €2 billion from Recovery Fund loans is being transferred to it. According to estimates, every €1 in loans from the HDB adds €3.58 to GDP through leverage and creates €2.10 in additional income for workers.