Background information

On 20 February 2023 the Public Employment Service (DYPA) announced the implementation of the third cycle of the special work subsidy program (Government Gazette 5226 / 7.10.2022).

The first round of business applications for participation in the program started on 14 September 2022 (Ministerial Decision No 88970/10.11.2021).

The purpose of the action is to prevent the hardship of unemployment that has been caused by the reduced demand for lignite in Western Macedonia and the Peloponnese and to ensure social cohesion. The local economy of these regions is heavily dependent on electricity producing plants that used lignite. The cessation of using lignite for producing electricity and the closing of the lignite plans carries the risk of de-industrialization and economic decline.

The programme is co-financed by national sources and the European Social Fund

Content of measure

This program recruits 3,400 unemployed, former employees in businesses in Western Macedonia and the Peloponnese who have been affected by the reduced use of lignite and the subsequent closing of lignite plants. Beneficiaries must be registered in the Public Employment Service (DYPA) register who were employed from 1 January 2019 onwards:

• in the Public Power Corporation (PPC) as former temporary PPC staff or former employed staff by PPC contractors. The PPC is the biggest energy production and supply company in Greece, engaged in the production, distribution and sale of electricity to consumers and businesses
• in the field of transport and earthworks related to lignite mining
• in businesses operating in the wholesale sector and retail trade, catering and tourism, as well as ιn other businesses.

The duration of the grant is 12-18 months. The wage and social security subsidy rate ranges between 75-100%. The grant amount varies from €700 to €933 monthly and from €8,397 to €16,794 in total, depending on the category of the unemployed person and the sector of the business in which he worked.

The last deadline for the submission of applications for the 3rd cycle of the program by the companies affected by de-lignitization is until 7 July 2023.

The total cost of the programme will cover up to €48 million.

Use of measure

The programme helps 3,400 unemployed people. Out of the 3,400 foreseen job places, 2,600 places refer to Western Macedonia and 800 places refer to the Municipalities of Megalopolis, Tripoli, Gortynia, Sparta, Oichalia and Kalamata in the Peloponnese.

Target groups

Workers	Businesses	Citizens
Unemployed	Other businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Public employment service EU (Council, EC, EP)	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 any involvement of social partners

Views and reactions

There are no social partner's reactions to the measure.

Sources

• 07 October 2022: Government Gazette 5226 / 7.10.202 (www.sate.gr)
• 20 February 2023: Από σήμερα οι αιτήσεις για τον Γ' κύκλο του προγράμματος (www.dypa.gov.gr)
• 27 June 2023: Ειδικό πρόγραμμα επιχορήγησης επιχειρήσεων για την απασχόληση 3.400 ανέργω (www.espa.gr)