Greece Secures €600 Million from EU Recovery Fund Through New Agreement7 October 2025 | 19:00By Machi Tratsa

Greece has successfully reached an agreement with the European Commission to unlock €600 million from the EU Recovery Fund, safeguarding critical resources for the country’s nationwide urban planning program.

The deal averts the risk of losing the funds due to strict deadlines linked to the ambitious “Constantinos Doxiadis” initiative, which aims to modernize urban and regional plans across 80% of Greek territory.

Flexible Terms to Meet Milestones

The Ministry of Environment and Energy (ΥΠΕΝ) secured a significant concession from Brussels: instead of requiring full implementation of the urban plans by April 2026, the European Commission agreed that the completion of studies by the Planning Authority would be enough to meet the milestone.

According to Efthymios Bakogiannis, Secretary General for Spatial Planning and Urban Environment, this flexibility enables Greece to lock the funds into special accounts while continuing consultations with local communities to refine and finalize the plans.

“This solution prevents rushed or inadequate studies,” Bakogiannis said. “Funds will only be released to contractors once the work is fully completed.”

Prioritising Quality and Feasibility

To keep the program on schedule, ΥΠΕΝ decided to temporarily exclude 40% of the 150 planned studies, focusing first on the most advanced ones. Among the initial projects are studies for Mykonos and Santorini, which will soon be open to public consultation.

Bakogiannis underlined that quality will not be compromised:

“If the methodology and standards are not met, we will reject the studies. I prefer to lose some funds rather than accept substandard work.”

Despite this progress, challenges remain. The Secretary General noted that planners often adopt a conservative approach, as the Council of State (ΣτΕ) has the final say in approving urban plans—an environment that discourages innovation in urban design.

Another key issue is the integration of building incentives under the New Building Regulation (ΝΟΚ) into the plans. Bakogiannis urged technical experts to provide solid methodological frameworks so that incentives are applied at the level of city blocks and neighborhoods, rather than piecemeal on individual properties.

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