The new law on the Partnerships Agreement for Regional Development (NSRF) 2021-2027 was passed on Thursday, 17 March. The law regulates issues that concern the management, control and implementation of development interventions for the 2021-2027 programming period, in accordance with the requirements of the relevant EU regulatory framework for the individual Funds.

The new law attempts primarily to address specific problem areas that were identified in the previous programming periods by leveraging the opportunities created by the new EU Regulations.

The main goals of the law are the effective diffusion of community funds, minimisation of delays in project production processes, timely maturation of projects, reduction of red-tape, effective handling and resolution of cases of fraud, and the implementation of a cohesive policy for supporting special groups of beneficiaries, municipalities or major beneficiaries, in specific areas of action implementation.

The effective implementation of procedures depends on a successful cooperation between the NSRF structures and the competent agencies, ensured through the creation of special thematic coordination and communication networks.

Finally, the law includes provisions that facilitate the completion of previous Programming Period actions and the smooth transition from the current to the new Programming Period, with the successful operation of all the restructured or otherwise, existing and new NSRF structures.

The Minister of Development and Investments, Mr. Adonis Georgiadis stated on the passing of the new law: “With the passing of the law on the new NSRF for the 2021-2027 period, Greece is becoming the first country in the European Union to complete the process, enabling it to be the first to issue its programmes for financing businesses and households through the new NSRF. At the Ministry of Development and Investments, we decided not to let a single day be lost in the absorption of EU funds. In these difficult times our goal remains to keep the Greek economy on course and, at the same time, to give our country a prospect for growth. In particular, I would like to thank my colleagues, the Deputy Minister for Development and Investments, Giannis Tsakiris, Secretary General Dimitris Skalkos and Special Secretaries Giorgos Zervos and Niki Dandolou for the constructive cooperation we had to get here today and be the first in Europe.”

The Deputy Minister of Development and Investments, Head of the Partnership Agreement for Regional Development , Giannis Tsakiris, stated: “The new era of strong and sustainable growth is marked by a shift towards a more outward-looking, competitive and green economic model, with a more efficient state, less red-tape and more transparency, digitally upgraded, with a drastically reduced shadow economy, with a tax system that is friendly to start-ups and a more resilient social protection network for beneficiaries. And this constitutional stamp of approval for the new NSRF law was given today in the Hellenic Parliament. Greece, with the new NSRF 2021-2027, amounting to €26.3 billion, the first to be approved among all EU member states, and with the new financing tools, is ready to transition to the new era, an era that combines economic efficiency with social cohesion and justice.”

The Secretary General of the NSRF, Dimitris Skalkos stated on today’s vote on the bill: “The passing of the new implementing law for the co-financed programmes of the 2021-2027 period provides the appropriate institutional framework for their effective management, monitoring and control. We are improving the NSRF system’s responsiveness to the challenges of the new environment by introducing new organisational structures, management tools, information system upgrades, and synergies with other financial instruments, enabling us to achieve our goals of sustainable competitiveness and reinforcement of social cohesion. The new implementing law was passed in good time, following the country’s lead in the approval of the new Partnership Agreement of Regional Development, so that immediately after the approval of the new sectoral and regional programmes, implementation can commence.”

It should be noted, as regards the new law, that there are significant differences and improvements from the institutional framework in force for NSRF 2014-2020 (Law 4314/2014), such as:

• Establishment of an NSRF Monitoring and Coordination Council tasked with coordinating the Funds and their synergies and complementarity. It consists of the chairs of the Programmes’ monitoring committees, General or Special Secretaries in the competent ministries, representatives of the National Coordination Authority, the Accounting Authority, the economic and social partners, the Association of Greek Regions, the Central Union of Municipalities of Greece, the MOU S.A., and representative non-governmental organizations.
• Creation of a new Managing Authority for the “Technical Assistance and Beneficiary Support” Programme. Pledging of amount for financing capacity building actions.
• Restructuring of the National Coordination Authority: Merging of services, creation of new services aimed at strengthening coordination (increased support for Regions, Integrated Spatial Investments, enhanced support for beneficiaries).
• Maintenance of Staff Structures at Ministries carrying out co-financed projects, limited to one structure per Ministry.
• Streamlining of programme specification process, which does not require approval by the Programme’s Monitoring Committee, placing emphasis on the scheduling of calls and its timely publication.
• Fully digitised processes. Interoperable IT systems Integrated Information System ‘IIS’, Integrated Public Investment Information System ‘e-pde’, Integrated State Aid Information System ‘OPSKE’, De Minimis State Aid Cumulation Information System ‘PSSKEIS’.
• Financial instruments: No Ministerial Decision/Joint Ministerial Decision is required for their establishment.
• Payments to Beneficiaries: They are not subject to deduction or withholding due to debts to the State or to insurance organizations or seizure in the hands of the State or third parties and are paid upon submission of tax and social insurance clearance supporting documents. For actions < 10,000 euros, payments to beneficiaries are made without submission of the aforementioned supporting documents.
• Financing and payments from the Public Investment Programme: The Special Services may be appointed, by decision of the Authorising Officer, as project managers/accounting officers for PIP payments:

– For payment of an amount to a beneficiary for provision of goods/services for technical assistance actions and payment of beneficiaries of state aid (Direct Payment)

– Transfer of the PIP project amount to the beneficiary for the execution/implementation of a specific project (Indirect Payment).

• New regulatory requirement: When selecting actions, the Managing Authority must verify that the beneficiary has the necessary financial resources and mechanisms at its disposal to cover its operation and maintenance costs for actions that include infrastructure or productive investments, in order to ensure their financial viability.
• Reduction of administrative verifications: Not over total spending, but proportionally to the risks identified ex ante.
• Possibility for external bodies to carry out on-site verifications.