The European Parliament Overwhelmingly Approved The Recovery Fund

2021-02-10   |   by CusiGO

On Wednesday, the European parliament gave the green light for a key part of the EU’s recovery plan. The European Parliament supported by a majority vote (582 in favour, 40 against, 69 abstaining) the establishment of a mechanism to spend most of the 750 billion euros on investment and structural reform. Brussels is now urging countries to ratify European legislation to create new, self owned resources, which is crucial to the launch of the mechanism. So far, only six of the 27 EU partners have done so.

The European Parliament approved the huge amount of money to be deployed in a massive aid package to be launched in Brussels in response to the economic crisis of the epidemic. Resilience and recovery mechanism (RRF) will be 672.5 billion euros, of which Spain will receive about 69.5 billion euros in grants between 2021 and 2023. If the schedule meets rajatabra’s requirements, the community administration also supports the Spanish plan, and community sources estimate that the first advance payments may arrive before the summer, accounting for 13% of the total. Valdis dombrovskis, executive vice president of the European Commission, said: “the EU needs funds to start flowing to Member States to help them recover and support businesses and citizens.”.

However, in order to activate the fund, all countries must approve Community legislation on new own resources for debt interest repayment. Croatia, Cyprus, Slovenia, Portugal, France and Bulgaria have now done so. The Committee hopes others will be able to do so this month. At the same time, it continues to negotiate plans with countries, which should be formally submitted by 30 April. So far, 18 countries, including Spain, have submitted their drafts; six have submitted some elements of their programmes, and three are discussing them, but have not submitted any documents, according to community sources.

Eider gardiaz รก BAL, the socialist and democratic group’s reporter on the supervision of the fund, stressed that the EU’s “nearly 700 billion euro investment plan to deal with the economic crisis caused by the epidemic” was “successful”. “It’s different from the solution in 2008, when ‘tightening’ and ‘cutting’ were the headlines,” he added.

The regulation stipulates that 37% of investment must be linked to the green economy and 20% must be used to meet the challenges of digitization. Community sources say most programs meet these two requirements, although in some countries “there is still some work to be done.”. However, most of the work has focused on setting goals and milestones. The EU administration wants a clear timetable in which each country must make progress in investment and reform and achieve its goals.

This road map is crucial because regular payments will depend on it. The same source explained that the Commission tended to tighten now in order to make a clear commitment to avoid future disputes with states. In addition, community administrations want to link structural reforms to ensure the sustainability of public finance, the labour market or taxation. On the contrary, countries pay more attention to investment. Other sources added: “it’s logical to ask for investment rather than reform, but we’re rebalancing that.”.

The committee should also pay attention to the elements (a, B or C) that form part of the plan. These countries will score seven out of 11, some of which are mandatory. One of them is the quality control and transparency mechanism of community funds. Brussels wanted the most credibility and assurance from the Hawks, who reluctantly accepted a mechanism involving large-scale debt and transferred funds to Europe’s most punished country (also the South).