Government passes stimulus bill, hopes to create 5,000 jobs

The Government adopted yesterday a string of amendments to the decisions for implementing a stimulus package for a sustained economic recovery. The amendments consist in a softening of the eligibility criteria for investment projects undertaken by small and medium enterprises.

The package includes a relaxation of the eligibility criteria so as to include the investment projects with a lower value but with impact over the economic growth and regional development that can lead to an increase in the number of state-aid beneficiaries, said the Ministry of Public Finance in a press release.

The eligibility requirements regarding the minimum investment on the minimum number of created jobs were modified, as the initial minimum caps were lowered from €30 million and 300 jobs respectively.

Three categories of eligible projects will be considered:

investments between €10 and 20 million, and minimum 100 new jobs created
investments between €20 and 30 million and minimum 200 jobs created
investments that exceed €30 million and minimum 300 jobs created

The softening of the eligibility requirements for state aid is expected to create 5,000 new jobs, as the employment rate increased sharply in 2009 and in the first part of the year. The state expects small and medium companies to get financing of €200 million through this stimulus bill.

The measures put in place by the Government will not be subject to European Commission notification and approval.

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