These plans included reforms and public investment projects that each member state plans to implement with the support of the European Union’s Recovery and Resilience Facility (RRF).
In the middle of this month, the European Union officially approved plans for economic recovery submitted by 12 countries, including France, Italy and Spain, while doubts are still surrounding the plan presented by Hungary.
The European Union has gradually begun to implement its 750 billion euro recovery plan, and this approval gives another light to the 12 countries to receive the first batch of financial aid as promised. Spain and Italy will be the main beneficiaries of the plan with about 70 billion euros in the next five years, followed by France with about 40 billion euros.
After the official adoption of the decisions, this second batch of member states will be able to use EU funds to boost their economic recovery due to the Corona pandemic. The four member states have requested pre-financing from the funds allocated to them, which will be disbursed after the signing of bilateral grant and loan agreements.
In this regard, Andrej Cerseli, Minister of Finance of Slovenia says: “Good news for four other member states: Croatia, Cyprus, Lithuania and Slovenia. We must make the best possible use of these funds to recover from the crisis and pave the way for a more resilient, greener and digital Europe,” he said.
The Recovery and Resilience Facility is the European Union’s large-scale financial support program in response to the challenges posed by the pandemic to the European economy. The €672.5 billion in the facility will be used to support reforms and investments identified in member states’ recovery and resilience plans.
Divided into grants totaling €312.5 billion and loans of €360 billion, the Recovery and Resilience Facility will play a critical role in helping Europe emerge from the crisis and secure green and digital transformations.
Council decisions precede the European Commission’s assessment of national recovery and resilience plans. The plans must comply with country-specific recommendations for 2019 and 2020 and reflect the EU’s overall goal of creating a greener economy that pays close attention to the digital sector and stimulates competitiveness.
The reforms and investments that Croatia plans to implement to achieve these goals include: improving water and waste management, shifting to sustainable mobility and financing digital infrastructures in remote rural areas.
Meanwhile, Cyprus intends to reform its electricity market and facilitate the deployment of renewable energy. An increase in locally produced renewable energy sources is among the measures that Lithuania has included in its recovery and resilience plan. Meanwhile, Slovenia plans to use part of the EU’s support for investment in transport, stimulate the use of renewable energy sources and increase the digitization of its public sector.