European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case GR-2021-25/1993 – measures in Greece

Working capital subsidy for companies affected by the pandemic in the tourism and hospitality sector – Restart Tourism

Epidotisi kefalaiou kinisis plitomrnon apo tin pandimia touristion epixiriseon – epanekinisi tourismo

Country Greece , applies nationwide
Time period Temporary, 16 June 2021 – 29 September 2021
Type Other initiatives or policies
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Penny Georgiadou (INEGSEE)
Case created 04 August 2021 (updated 09 August 2021)

Background information

The Ministry of Development & Investment on 1 June 2021 announced a new programme to provide working capital to tourism and hospitality sector’s companies.

This new action is part of the broader support of the operation of the companies in the tourism sector, after restarting their operation and in view of the official start of the tourist season for 2021 under the pandemic of the disease COVID-19.

The action refers to the provision of sufficient cash liquidity for the restart of their economic activity, through the grant of a part of the necessary working capital.

The new action is a non-repayable grant as necessary working capital, is financed through the NSRF 2021 - 2027 and the projected budget of the action is €350 million.

The Financing Application is submitted electronically on the platform of the State Aid Information System (PSKE) www.ependyseis.gr/mis The deadline for applications is from 16 June 2021 to 29 September 2021.

Content of measure

According to the requirements of the programme for the provision of working capital to tourist companies:

  • Beneficiaries of the financial support are tourist enterprises regardless of their legal form and in particular hospitality companies of any kind, travel agencies, as well as tour bus agencies.
  • The amount of the financial aid can correspond to a maximum of 5% for the accommodation establishments and up to 2.5% for the other companies, calculated on the annual turnover of the year 2019.
  • The programme finances exclusively the expenses of the companies for the supply of raw materials from 1 April 2021 onwards.
  • The payable grant as working capital for the supply of raw materials must have been spent from the date of commencement of the expenditure financing and until 31 December 2021.
  • The maximum grant amount is €400,000.
  • From the total national budget of €350 million, €300 million will be given to Small and Medium Enterprises and €50 million to large Enterprises.
  • The financing covers up to 70% of the total value of supplies.
  • The Action is co-financed by the European Regional Fund Development (ERDF) of the European Union and from national resources.

Use of measure

There is no information.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
SMEs
Other businesses
Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

There is no involvement of social partners.

Views and reactions

There is no reaction.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      I - Accommodation And Food Service Activities I55 Accommodation

This case is not occupation-specific.

Sources

  • 16 June 2021: Epidotisi kefalaiou kinisis plitomenon apo tin pandimia touristikon epihiriseo (www.espa.gr)

Citation

Eurofound (2021), Working capital subsidy for companies affected by the pandemic in the tourism and hospitality sector – Restart Tourism, case GR-2021-25/1993 (measures in Greece), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.