Greek infrastructure projects must be realistically prioritized with secured funding and technical maturity rather than treated as an end in themselves, Deputy Infrastructure and Transport Minister Nikos Tachiaos told an industry conference in Athens on Tuesday.
Speaking on September 29 at the ninth Infrastructure and Transport Conference at the Megaron Athens Concert Hall, Tachiaos warned that finite national funds and the end of European Union recovery spending mean Greece must adapt its construction ambitions to fiscal realities.
Tachiaos praised the contribution of European financial instruments to national development, noting that without the European Union, Greece would remain an agricultural country. He said European funding had enabled major strides in national infrastructure and stressed that Greece must continue seeking EU resources, including new tools focused on military mobility and climate funds, because the need for funds to drive economic convergence will not disappear.
National resources and private funding models
With national funds limited, Tachiaos said the government must focus on maximizing resources from the upcoming National Strategic Reference Framework, the main EU structural funding program known in Greece as ESPA, while accelerating fund absorption. He described public-private partnerships as a useful tool for delivery, though not a cure for all problems.
Regarding concessions, Tachiaos noted that while user fees fund service provision under such models, viable schemes still require state co-financing. He cited the Pyrgos to Kalo Nero to Tsakona road axis in the Peloponnese as a prime example where the exact level of state participation remains the central point of discussion.
End of the EU Recovery Fund
Tachiaos highlighted the shift in funding following the completion of the EU Recovery and Resilience Facility. Although the fund was not originally designed for public works, Tachiaos said it was decisive in finishing key national infrastructure, including the E65 Central Greece motorway. However, he stated that the Recovery Fund is now finished and Greece cannot look to it for future project financing.
He added that major EU contributor nations, including Germany, the Netherlands, and Denmark, have no inclination to repeat similar joint recovery funding tools. He also warned that changing political dynamics across Europe could shrink available funds, noting that gains by the Alternative for Germany party could prompt budget cuts already being discussed in Berlin, while political shifts in France involving Jean-Luc Melenchon or Marine Le Pen would leave Greece without key European allies.
Fiscal limits and ongoing major projects
Addressing the domestic construction sector, Tachiaos said Greek engineering firms have the capacity to complete large projects rapidly, but stressed that project selection cannot be driven by contractor demands. He warned against spending beyond available limits and emphasized the need to overcome administrative hurdles, land expropriations, and bureaucratic delays, defining true project maturity as having funds secured in the treasury to deliver work on schedule.
With major flagship infrastructure projects currently in progress, including the Northern Road Axis of Crete known as BOAK and Line 4 of the Athens Metro, Tachiaos concluded that technical maturity and secured financing are essential to turn available capital into completed public works efficiently.
