–
–
Prime Minister Mario Draghi shows Italy’s recovery plan after it was approved by the European Commission in June. PHOTO: Reuters
–
In 2021, Brussels will take 80 billion from the markets in the form of bonds
Bulgaria and the Netherlands, both with caretaker governments, are the only EU countries that have not yet submitted their national recovery and sustainability plans to the European Commission.
Following the submission of an investment plan to the 27 EU member states
expect a share of
megapack from
EUR 750 billion,
with which Brussels provides a way out of the crisis caused by the pandemic.
Sofia has, however, sent a draft of an investment plan for which it will spend BGN 12.6 billion. However, only after the presentation of the final version will the 2-month period for approval by the EC begin.
“Bulgaria has not yet officially submitted its plan, which must be evaluated within two months. The EC continues to maintain contact with the Bulgarian authorities and to work constructively with them, “said European Commission spokeswoman Weerle Neutz. During the evaluation process, the EC cannot comment on the controversial issues.
The national plans must first be approved by the EC and then by the other members of the EU Council.
Both Bulgaria and the Netherlands changed their governments at the time the plans had to be drawn up. Research organizations in the Netherlands have expressed concern about the country’s inability to present its plan. Until a new cabinet is appointed, one is not expected.
A total of 6 members of
The EU has asked
extension of the term
to evaluate their recovery plans – Malta, Finland, Poland, Sweden, Romania and Estonia. An agreement has been reached with Poland and the 2-month deadline has been extended to 1 August. An additional extension is not ruled out, but has not been requested so far.
The EC has proposed that Hungary extend the evaluation of its plan until the end of September. Budapest responded “in a constructive way” and agreed to work with the EC on open issues, Neutz said, adding that he could not give further details.
The last approval from the EC was given to the Czech Republic on July 19th.
Prague will receive
for free
7.2 billion euros
The electronic edition “List” specifies that these 180 billion crowns will be received only if the Czech authorities manage to guarantee the absence of conflict of interests of the dollar billionaire and current Prime Minister Andrej Babiš. He categorically rejects the conflict between his personal and state interests.
On Monday, Croatia, Slovenia, Lithuania and Cyprus also received approval from the EU Council for their plans and could move on to signing financing agreements with the EC to start funding.
These are the last countries that will be able to count on advance funding before the autumn, as the European institutions go on holiday until the beginning of September.
Thus, the total number of approved countries became 16 out of 25 that submitted their reform and investment projects. They may soon expect the first tranche of 13% of the EU’s € 750 billion recovery fund. Approval by the EU Council for Sweden, Finland, Estonia, Romania, the Czech Republic, Ireland and Malta remains for the autumn.
The plans are up
check
11 criteria,
including the share of funds dedicated to environmental sustainability and digitalisation, as well as the effectiveness of spending control and audit systems.
The situation with the two main “disobedient” members, Hungary and Poland, remains unclear. Apart from the extension of the deadline for approval, the EC did not provide details, but according to sources, there are problems with both members.
Brussels is dissatisfied with Hungary’s anti-corruption proposals. Prime Minister Viktor Orbán commented a few days ago that if Brussels does not approve the plan, Hungary itself will start implementing projects worth 7.2 billion euros, and when European money comes, it will cover the costs incurred. According to him, the EU cannot stop the money for Budapest, but only delay it.
However, EC Deputy Chief Valdis Dombrovskis said national funding is possible, but the plan must first be approved by the EU.
With regard to Poland, Brussels has problems with the independence of the judiciary and the country’s climate and environmental goals.
The EC is already raising funds to inject economies. In mid-June, 10-year bonds worth 20 billion euros were issued on the debt market. “Interest in the new securities was very high, exceeding seven times the stated amount,” said EC chief Ursula von der Leyen.
In 2021, the EC intends to borrow 80 billion euros from the markets in the form of bonds to finance the economic transformation scheme.
– .
