EU member states formally approved on Tuesday recovery plans submitted by 12 countries – including France, Italy and Spain – while doubts hang over the proposal from Hungary.
The European Union is gradually rolling out its €750 billion recovery plan and this green light means that the dozen countries can receive the first instalment of the sums promised. Further payouts will depend on whether national governments deliver on reforms and commitments that the money spent will meet pre-set targets on advancing Europe’s green and digital investment priorities.
Further payouts will depend on whether national governments deliver on reforms and commitments that the money spent will meet pre-set targets on advancing Europe’s green and digital investment priorities
Spain and Italy will be the main beneficiaries of the plan, with a total of almost €70 billion in subsidies over the next five years, ahead of France with almost €40 billion. With this support, “the member states can start the reforms and investments needed for the recovery, strengthening and transforming of our economies,” said Andrej Sircelj, the finance minister from Slovenia, which holds the EU’s rotating presidency.
Only two countries out of 27 – Bulgaria and the Netherlands – have yet to submit their proposals.
Hungary’s proposal has turned into a political headache, with the European Commission yet to sign off on it due to concerns about Budapest’s commitment to fighting corruption and good governance. The flap was made worse by an anti-LGBTQ law pushed through by Prime Minister Viktor Orban that has raised calls for the commission to hit his government, which receives generous EU subsidies, in the pocketbook.
Economics Affairs Commissioner Paolo Gentiloni on Monday said he hoped that a solution was a “matter of weeks” away but that it would be up to Budapest to deliver on the EU demands.
Malta's recovery and resilience plan
The European Commission in a statement on Tuesday said it had 'today' received an official recovery and resilience plan from Malta.
The presentation of the plan followed intensive dialogue between the Commission and the Maltese authorities over the past number of months.
Malta, the commission said, has requested a total of €316.4 million in grants under the RRF.
The Maltese plan covers six areas, including sustainable transport, circular economy, clean energy and energy-efficiency in buildings, digital transformation of the public administration and the legal system, projects targeting the health and education sectors, as well as institutional reforms. Projects in the plan cover the entire lifetime of the RRF until 2026.
The Commission will now assess Malta's plan including a review of whether it contributes to effectively addressing all or a significant subset of challenges identified in the relevant country-specific recommendations issued in the context of the European Semester. The Commission will also assess whether the plan dedicates at least 37% of expenditure to investments and reforms that support climate objectives, and 20% to the digital transition.
The Council will have, as a rule, four weeks to adopt the Commission proposal for a Council Implementing Decision.