Belgium, Portugal and Luxembourg were the first EU countries to receive money from the temporary European recovery fund. It concerns almost 3 billion euros, of which the lion’s share (2.2 billion) is intended for Portugal.
With the first flow of money from the fund totalling 672.5 billion euros, the three countries can get started with projects approved by Brussels.
Since April, 25 Member States have submitted their recovery plans in Brussels, of which 16 have already been fully approved. They are entitled to a pre-financing of a maximum of 13 percent of the amount they are entitled to according to a specific distribution formula. For Portugal, that is a total of 13.9 billion euros in subsidies and 2.7 billion euros in favourable loans. Belgium and Luxembourg waive loans and receive 5.9 billion and 93 million euros in subsidies, respectively.
Belgium had urged the European Commission to obtain pre-financing as soon as possible to be able to start quickly with significant investments, says State Secretary Thomas Dermine (Recovery and Strategic Investments). “I’m glad we were heard.” He is already receiving 770 million euros, his Luxembourg colleague 12.1 million euros.
The heads of government have agreed that at least 37 percent will be spent on climate measures and 20 percent on digitization. Furthermore, countries need to implement all kinds of reforms to strengthen their economies, such as adjustments in the tax system or in the labour market. The countries have agreed on timetables with the commission for the implementation of the plans. Payments of the following amounts are linked to the fulfilment of the agreements.
The Netherlands and Bulgaria are the only countries that have not yet submitted a recovery plan. The Hague wants to wait until there is a new government. The other recovery plans submitted will be judged after the summer. Two (Ireland and the Czech Republic) have already been approved by the commission, but not yet by EU finance ministers; the EU’s executive board is currently analyzing the others.