Athens (AFP)

The European Commission has approved Greece's recovery plan, which will be financed by the European common loan intended to mitigate the economic impact of the pandemic, its president Ursula von der Leyen announced in Athens on Thursday.

During a European tour that began on Wednesday, Mrs von der Leyen has already given the green light from Brussels to Spain and Portugal for their national post-Covid plans.

After Greece, she goes to Denmark on Thursday afternoon.

Italy and Spain will be the first beneficiaries of the mega-European recovery plan of 750 billion euros, fiercely negotiated by the 27 until its adoption in July 2020.

"Our approval today is an important step for the release of 30.5 billion euros over the next few years" to Greece, said Ms. von der Leyen from the ancient site of the Agora in Athens, in the presence of Greek Prime Minister Kyriakos Mitsotakis.

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"When the plan is approved by the European Council, we will be ready to release the first funds in July," added the President of the European Commission.

"Delighted to give the green light from the European Commission to Greece's recovery plan," Ms. von der Leyen then tweeted.

Athens is to receive some 30.5 billion euros, including 17.8 billion in direct grants and 12.7 billion in the form of loans.

Greek Prime Minister Kyriakos Mitsotakis hailed the decision, "the last step to emerge from the turbulence of the pandemic".

"It is the beginning of a new era", welcomed the head of the conservative government.

The majority of loans, around 8 billion, will be invested in the green transition and the digital economy, said the Greek leader.

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For Mrs von der Leyen, this plan "will profoundly transform the Greek economy and make Greece stronger, better prepared for the future".

Like other countries in southern Europe, whose economy depends heavily on tourism, Greece has suffered the full brunt of the global pandemic.

After a decade of economic crisis, Greece hoped to return to strong growth in 2020 but its GDP plunged by 8.2%.

The International Monetary Fund (IMF) expects the Greek economy to grow 3.3% this year, accelerating in 2022, to 5.4%.

The European Commission forecasts an increase in Greek GDP of 4.1% this year and 6% in 2022.

Greece plans to spend more than 11.6 billion euros in 2021 to support companies that have had to slow down or cease their activity during successive lockdowns decreed to stem the coronavirus epidemic.

In 2020, it had already paid 24 billion in aid.

"The implementation of the ambitious Greek plan represents a challenge but also a very great opportunity", added the European leader, welcoming that "today, Europe and Greece are together in this enterprise".

To finance the various national plans, the EU had to agree on an unprecedented mechanism that enabled it to carry out on Tuesday a first common debt issue, in the amount of 20 billion euros, welcomed by Mrs von der Leyen as "the largest operation" of this type ever carried out in Europe.

© 2021 AFP