That fund, officially the Recovery and Resilience Facility, was set up during the corona crisis to help Member States emerge stronger from the crisis.
The Netherlands wanted strict requirements
For a long time, the Netherlands was not in favor of such a mega bag of European money for the member states. Ultimately, our country also agreed, but on the condition that strict rules would be imposed on payment.
This could now cost the Netherlands dearly. To obtain the total 5.4 billion euros that is ready for the Netherlands, we must achieve 133 milestones and objectives. If that doesn’t work, the Netherlands will face cuts.
Controversial
The House has declared two bills controversial that are important for the payment of the money: the Money Laundering Action Plan bill and the Pay-as-You-Go bill. This means that in principle it will not be discussed until a new cabinet is in place.
After it fell, the cabinet had already decided that it would not continue developing road pricing.
“If decision-making is not made to achieve the linked Recovery and Resilience Plan milestones in a timely manner, this will have financial consequences, through significant reductions in the HVP resources to be received,” writes outgoing Minister of Finance Sigrid Kaag.
1.2 billion
Together, this could amount to a loss of more than 1.2 billion, according to a calculation by RTL Z. In principle, each measure that is not implemented is worth 40.6 million euros: the total amount of 5.4 billion euros divided by 133 measures.
But the discount can be much higher, due to a fairly complicated discount system. If the entry into force of a reform is at stake, and that is the case, the reduction is already multiplied by a factor of 5. Then you are already talking about 200 million euros per measure.
The European Commission also has the power to further increase the fine, and is making use of it. Kaag previously wrote to the House that the Commission tripled the reduction in previous fines for other countries if the measure that is not implemented ‘touches on a country-specific recommendation’.
These are Commission recommendations for reforms that Brussels believes would be good for specific countries.
This is also the case in this case, the Ministry of Finance confirms. The discount per measure not implemented will then increase to more than 600 million euros. This means that failure to implement 2 of the 133 measures (on time) could cost the Netherlands 1.2 billion euros.
And the Netherlands probably cannot count on too much compassion from Brussels. “In line with the Dutch commitment to the establishment of the HVF, it is expected that the Commission will be strict,” writes Minister Kaag.
Hast
Whether the measures can still be taken in time to avoid a reduction in Brussels money remains to be seen in the near future. The deadline for the anti-money laundering measure is in the first half of 2025. The Pay-as-You-Go Act must be finally approved by both Houses a year later.
2023-10-26 05:23:55
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