PASOK and government clash in parliament over Greece's €36 billion Recovery Fund

Heated parliamentary exchange

On 3 July, the Greek parliament debated the implementation of the Recovery and Resilience Facility, with PASOK-KINAL submitting a topical question. The session quickly turned into a fierce confrontation between the main opposition and the government.

You are amateurs and also incompetent.

PASOK president Nikos Androulakis accused the government of failing to use the €36 billion fund to transform the economy and improve citizens' lives. He claimed there was no coherent strategy, only constantly revised project lists, and no consultation with local authorities or chambers.

Accusations of mismanagement

Androulakis argued that the government had revised the national plan 'Greece 2.0' four times, despite earlier dismissing his calls for revision as populist. He alleged that direct awards and rigged tenders were widespread, and that small and medium enterprises were excluded from the benefits.

After the political change, we will audit where every last euro went and which cunning people profited at the expense of society.

PASOK MP Pavlos Geroulanos presented a 130-page study claiming two-thirds of the measures were now outside the original plans, with quality downgrades and projects being removed from the fund. He said the government had failed to meet its own benchmarks set in 'Greece 2.0'.

Government's rebuttal

Deputy Minister of National Economy and Finance Nikos Papathanasis dismissed the criticism, stating that PASOK's data was outdated and that the opposition's question appeared to have been drafted by AI without current figures. He insisted that no projects were being cancelled; those removed from the Recovery Fund were transferred to other financing instruments.

PASOK describes a failure that the facts themselves have disproven.

Papathanasis highlighted that Greece had already received €24.6 billion from the fund, with an eighth payment request for an additional €1.6 billion, bringing the total to 73% of the programme. After the ongoing revision, the country would collect €30.5 billion, or 85% of the total budget.

By the numbers

The deputy minister provided detailed figures: 256 milestones had been achieved (76% of the programme), €15.5 billion in grants had been channelled into the economy over five years, and the loan component of €17.7 billion was supporting investments worth €46 billion. He noted that 100% of loan resources had been absorbed and contracted ahead of deadline.

Papathanasis also countered the claim that SMEs were sidelined, pointing out that 60.4% of the 859 loan contracts involved small and medium enterprises, and 15,700 businesses had used the loan programmes. Additionally, 90,000 SMEs received subsidies for digital tools.

Political stakes

The debate laid bare the deep political divide ahead of future elections. Androulakis demanded a special parliamentary committee to audit the fund's spending after its completion, while Papathanasis accused PASOK of 'investing in fear' and of competing with the left-wing party of former prime minister Alexis Tsipras for extreme rhetoric. The government framed its vision as 'Greece 2030' with more investments and better infrastructure, contrasting it with what it called PASOK's 'miserable' portrayal of the country.