The European Commission is ready to increase its contribution to Greek infrastructure projects to help restart Greece’s struggling economy, a commission spokesman said

Greece has spent only a quarter of a €20 billion envelope provided as part of the European Union’s regional aid programme.

The funds, part of the 2007-2013 EU budget, remain unspent as Greece is unable to pay its contribution to projects which the aid is meant to co-finance.

In order for the projects to get off the ground, Greek authorities have asked that the EU contribution be increased to 85 per cent of total costs instead of the current 79 per cent.

The commission said the increase was possible and the question would be dealt with in the coming weeks and months.

The agreement was reached last week during a meeting between Regional Policy Commissioner Johannes Hahn and Greek Regional Development Minister, Nichalis Chrysochoidis. The Commission spokesman said about €7.7 billion could be released in the medium term to restart blocked programs.

The EU did ask however that Greece reduce its bureaucratic costs so that the project funds can reach small and medium companies more efficiently.

The commission also asked that Greece reduce land expropriation costs in order to facilitate five motorway projects which are to receive funding.