Social housing for thousands of households, an electric car with a monthly lease of up to €150, an extra €100 added to the heating allowance, energy upgrades for homes and small businesses, and new transport measures are included in the new €5.3 billion package that is taking over as the Recovery Fund cycle comes to an end.

Greece’s Social Climate Plan, which has received the European Commission’s “green light,” opens a new funding cycle with 25 specific measures through 2032, which will reach 1.5 million households and 70,000 very small businesses. The first measures are already starting this year, while from 2027 a much broader range of support measures will be launched and European funds will begin to be disbursed.

Overall, the Greek plan provides for the mobilization of €4.77 billion excluding VAT, of which €3.57 billion, or 75%, will come from the European Union and €1.2 billion, the remaining 25%, from national resources. Including VAT, the total value of the measures reaches €5.3 billion, creating a significant new source of funding for the Greek economy in the period following the completion of the Recovery Fund. According to the economic team, the Greek plan is among the first to receive the “green light” and is the largest to date in terms of the volume of resources approved by the European Commission.

The significance of the new funding instrument, however, goes beyond the sum of the individual subsidies. The economic team places it in the “day after” the Recovery Fund, as a new major pillar of financing for the economy, alongside the NSRF, agricultural subsidies and the new Competitiveness Fund. In practice, the €5.3 billion aims to function both as a buffer against energy costs for households and very small businesses and as financial fuel for housing, the energy upgrading of the building stock and the modernization of transport.

The money, however, will not come as a “blank check.” As European officials clarify, disbursements will take place after checks confirm that Greece has achieved specific milestones and targets. The plan specifies both the measures and their implementation timetable, following an approach similar to that of the Recovery Fund. The first funds are expected to be credited to the country in 2027, while the plan can be revised if deemed necessary and if an agreement is reached with the European Commission.

The activation of the Social Climate Fund takes on particular importance from 2027, when the Emissions Trading System (ETS2) is extended to fuels used in road transport and buildings, creating additional costs for oil and natural gas. At the same time, Greece continues to record high levels of energy poverty, particularly in rural areas and among lower-income groups, has an aging building stock, and remains significantly dependent on fossil fuels for transport and heating. The new funding instrument essentially seeks to create a safety net against this additional burden.

The first major front opens in housing

Already this year, the Ministry of Social Cohesion and Family and the Ministry of National Defence are proceeding with the necessary permits and approvals for the use of facilities at three former military camps in Athens, Thessaloniki and Patras, with the aim of subsequently launching a public tender for the construction of approximately 2,350 social housing units.

At the same time, public buildings that can be converted into housing are being sought, so that approximately 400 additional apartments can be added. In total, therefore, the plan could create approximately 2,750 new social housing units, with a budget expected to reach €490 million.

One of the initial measures is also a new energy-upgrade program for very small businesses. The measure will finance improvements to building envelopes, replacement of heating systems with heat pumps, and replacement of water heaters with solar water heaters, with an emphasis on businesses most heavily burdened by energy costs. The measure has an allocated budget of €395 million and aims to benefit approximately 12,000 very small businesses, with enhanced subsidy rates so that the investments do not place an excessive burden on their liquidity.

One of the most immediately practical measures is the “social leasing” scheme for electric cars. Vulnerable households will be able to obtain an electric passenger car through a four-year lease from a specific list of vehicles, with the monthly lease payment not exceeding €150. The subsidy can reach up to €12,500 and will be increased by €1,500 for vulnerable families with a member who has a disability. Provision is also made for the future acquisition of the car after the four-year period ends. The measure has a budget of €170 million and aims to benefit 15,000 households.

New electric buses and taxis

In transport, the procurement of 211 new electric buses for Athens and Thessaloniki is being promoted starting this year, of which 101 will be added to Athens’ fleet and 110 to Thessaloniki’s. The plan provides for priority to be given to routes with high transport needs and areas with lower incomes and less access to private cars, such as Western Attica and western Thessaloniki.

The aim is to reduce waiting times at stops by 15%, increase service frequency and reduce the operating cost of public urban transport by €35 million. The measure has a budget of €129 million.

At the same time, the way is being opened for the replacement of conventional taxis with electric ones. The program provides a €20,000 subsidy for replacing a conventional taxi with an electric vehicle, while for taxis accessible to people with disabilities the subsidy rises to €29,000. Initially, the measure applies to taxi owners in Athens and Thessaloniki and is subsequently expected to be extended nationwide. The total budget amounts to €68 million.

From 2027, the package becomes much larger

From 2027, the package becomes even larger and reaches households more directly. The largest individual measure concerns the energy upgrading of homes and the replacement of heating systems and water heaters for vulnerable households, with a total budget of €1.7 billion.

At the same time, 13 “one-stop shops” will be created, one in each Region, so that households and very small businesses can receive information and advice on available energy-efficiency measures.

Approximately 200,000 vulnerable households will also be able to obtain an Energy Performance Certificate free of charge, while an Energy Support Registry will be created, in which households meeting the eligibility criteria of the Social Climate Fund will be registered electronically.

The same package also includes direct income support for 780,000 recipients of the heating allowance. From 2027 through 2032, they are expected to receive an additional €100 per year, in order to absorb part of the additional burden from oil, natural gas and LPG used for heating.

Student housing and accessibility

The housing component also includes the renovation of 15 student residence buildings in Athens, Thessaloniki, Ioannina, Patras and Komotini. The plan concerns approximately 5,600 students and corresponds to a 36.5% increase in capacity compared with the number of students currently accommodated in those residences.

Particular emphasis is also being placed on accessibility. A 100% subsidy is planned for electric wheelchairs, mobility scooters and hand bikes for 13,200 people with disabilities, along with the upgrading of 10 older trains on Metro Line 1 and measures to make all 24 stations on the line fully accessible.

At the same time, 12 new trains will be acquired for Athens Metro Lines 2 and 3, while accessibility improvements are planned at 33 railway stations.

Green transport for businesses

The plan also opens a new cycle of “green” transport measures for businesses. Very small businesses will be able to acquire commercial electric vehicles through purchase or leasing and install private chargers, while 4,400 new publicly accessible electric-vehicle charging points will be developed in areas where such infrastructure remains limited.

In Attica, Thessaloniki and regional municipalities, “Transport on Demand” services are also being planned, aimed primarily at serving elderly people, people with disabilities, single-parent and large families, and unemployed people. A special measure is also planned for transporting students with disabilities in Athens, Thessaloniki, mountainous areas and islands.

Finally, in Athens, four new municipal transport routes will be created through ATHENS MOVE, connecting Neos Kosmos, Petralona and Kerameikos; Kato Patisia, Sepolia and Kerameikos; Probonas, Ano Patisia and Kypseli; and Attiki and Kypseli.