EU cash must boost midterm prospects

Foreign economists say Greece needs to use the cash it will get from the European Commission's Recovery Fund to strengthen the healthcare and education systems, implement investments and growth policies, cut taxes, support entrepreneurship and contain the rebound of unemployment. They tell Kathimerini that the almost 32 billion euros will give Greece a significant opportunity to improve its economy's midterm prospects.

According to estimates by Oxford Economics, if Greece makes the most of those funds, it will outperform the eurozone with annual growth exceeding 3.5% in 2021-24.

Holger Schmieding, chief economist at Berenberg Bank, says: "The recovery fund is meant for the recovery after the pandemic, not for covering the costs of the pandemic this year (except for a very small part dedicated to 2020). Like other countries, Greece should use the grants and cheap loans...