Greece plans 30 million euros for an F1 circuit
While Greece has been making headlines for over a year due to the size of its debt, the government has just released nearly 30 million euros to allow for the construction of a track intended to host F1.
Despite financial difficulties, Greece dreams of Formula 1, and the country is considering building a circuit capable of hosting a Grand Prix. This project plans the construction of a genuine automotive complex in Xalandritsa, located near the port of Patras, as a karting track would also be built in addition to the F1 and Moto GP track. The public subsidy of 28.9 million euros would thus represent nearly a third of the total cost of the project led by the investment fund Racetrack Patras SA, estimated at 94.6 million euros.
However, the construction of such a circuit is an old sea dog as it has been discussed since 2006, before the economic crisis hit the country hard. In May 2011, the project was relaunched with much fanfare as local authorities hoped to secure funds from neighboring Turkey, which was about to lose its annual race. Last August, another project also emerged to propose an urban circuit in the port of Piraeus.
According to *Bloomberg*, Notis Mitarakis, the Greek Minister of Development, has approved the release of funds to boost the local economy through job creation. With two other projects each exceeding 50 million euros, a total of 800 jobs could be created. This figure is far from the 5,000 permanent and 3,000 temporary positions mentioned by several articles in the French press. If a single project could create so many jobs, it would be certain that all countries around the world would rush to build such infrastructures, and the French government would not have blocked funding for the return of F1 on an existing circuit.
The timing of this announcement is not the most opportune as it comes a week after a new outbreak of violence in the country to protest against austerity measures implemented at the request of the European Commission and the IMF. As a reminder, the country’s debt reaches 327 billion euros, more than 170% of its GDP, and the unemployment rate could reach 27% in the near future. In this context, the arrival of luxurious motorhomes from the teams could crystallize local anger, and F1 could become a central issue in the country’s political life, as was the case in Bahrain in the last two seasons.
Even before Bernie Ecclestone looks into this matter, the subsidy will need to be approved by the local parliament, which is not expected to be an easy task in the current context.
With the participation of www.Racingbusiness.fr
