With a budget of €50 million, the action “Produce in Greece” supports the competitiveness of small and medium sized enterprises.

The new action “Produce in Greece“, with a total budget of €50 million, will support the competitiveness of small and medium sized enterprises. is another substantial intervention to strengthen the domestic production base, with a clear focus on manufacturing and sectors where there is a long-term imbalance between supply and demand.

As stated in a briefing note by the consulting firm Anodos consulting, in an economic environment that seeks to boost competitiveness and reduce dependence on imports, this initiative comes to fill a real investment gap.

  • The size of investment projects, from €100,000 to €400,000, combined with subsidy rates of up to 55% under conditions of rapid implementation, creates a particularly attractive financial framework for SMEs. However, the requirement of at least 25% equity participation ensures that investment projects will also have the necessary financial maturity.
  • A key feature of the measure is the clear emphasis on production and machinery equipment, which covers 65% to 90% of the budget. This choice is not accidental. The majority of Greek SMEs face a significant shortfall in modern production equipment, which limits both their productivity and their ability to penetrate high-demand markets. Subsidizing such investments is expected to act as a catalyst for modernization, enhancing quality, reducing production costs and increasing export potential
  • At the same time, the provision for spending on energy saving, circular economy and digital tools (software, cloud services, etc.) aligns the action with current European priorities for green and digital transition.

As Anodos reports, there are also challenges that may act as a constraint for some businesses.

In practice, Anodos reckons, modern production machinery is technologically advanced and designed to increase efficiency with less human intervention.

This means that many businesses have no real need for extra staff to the same extent that the action requires. Instead, the trend is to upgrade the skills of existing staff, not necessarily to increase their numbers. Therefore, this obligation may create an artificial cost burden or even discourage enterprises from participating.

Overall, the “Produce in Greece” action is moving in the right direction, focusing on what is really needed: the modernisation of the productive base of SMEs. If properly exploited, it can make a substantial contribution to improving the competitiveness of the Greek economy.

Its effectiveness will also be judged by the extent to which individual conditions, such as the mandatory increase in employment, are aligned with the actual operating conditions of modern Greek production.