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Impact of EU measures on the Greek economy

Question écrite de M. Athanasios KONSTANTINOU - Commission européenne

Question de M. Athanasios KONSTANTINOU,

Diffusée le 22 mars 2022

Subject: Impact of EU measures on the Greek economy

On 1 March 2022, Dr Giorgos Konstantopoulos, President of the Northern Greek Exporters Association, described the situation in Ukraine as extremely worrying and the latest developments as particularly ominous. Greek exports to Ukraine and Russia are relatively low, despite the large number of companies doing business with these countries. The latter will be more affected than other companies and will therefore require assistance.

The full consequences of the crisis in Ukraine are not yet clear, with problems expected to intensify, significantly affecting international supply chains, inflation rates and energy supplies. Greece, as Member State, is at pains to comply with the decisions and actions of the EU, which are in line with international law.

In view of this:

1. Can the Commission say what action it will it take to ensure that Greece (which is already in the throes of a long-standing economic crisis as a result of the harsh austerity measures imposed on it by the EU), together with its producers and entrepreneurs, does not become the victim of EU sanctions against Russia?

2. What measures will it take to provide assistance and offset falling earnings and job losses caused by the sanctions?

Réponse - Commission européenne

Diffusée le 29 juin 2022

Answer given by Mr Gentiloni on behalf of the European Commission

(30 June 2022)

The EU and like-minded partners have been taking wide-ranging sanctions in response to Russia's aggression against Ukraine and mounting atrocities against the Ukrainian population. The sanctions adopted by the EU are targeted at the Kremlin and its accomplices.

They aim to cripple the Russian’s government ability to pursue its war of aggression against Ukraine, thereby contributing to restoring peace in Europe. In doing so, EU sanctions uphold the Union’s values of human dignity, freedom, democracy, the rule of law, and human rights.

The Commission is fully committed to designing and calibrating sanctions that maximise the negative impact for the Russian economy while minimising the negative consequences for the Union’s own citizens and businesses.

Russia’s aggression against Ukraine has further increased global energy prices, which are expected to aggravate inflationary pressures and erode disposable income. Support measures taken by the Greek Government are expected to partially cushion these negative effects.

The Commission 2022 spring forecast projects the Greek real gross domestic product (GDP) growth at 3.5% in 2022 and 3.1% in 2023.

Greece can benefit from funds: A total of EUR 30.5 billion (16.7% of the country’s GDP in 2019) in grants and loans under the Recovery and Resilience Facility (RRF) to finance its ambitious and transformative reform and investment plan.

The RRF and other EU funds will also assist Greece in achieving rapid green energy transition, allowing it to provide its companies and households affordable, secure and clean energy.

The RRF will play an important role to achieve the objectives of REPowerEU (1), which outlined a plan to make Europe independent from Russian fossil fuels well before 2030, as confirmed by the Versailles Declaration (2).

⋅1∙ COM(2022) 108 final.

⋅2∙ https://www.consilium.europa.eu/media/54773/20220311-versailles-declaration-en.pdf



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