Here’s how to use the recovery fund money. All the posts in Brussels
What is written in the European Commission Guidelines for the use of the Recovery Fund.
"The Recovery Fund becomes an instrument in the hands of Brussels to try to impose the modernization of national economies which in 20 years of the single currency some countries have failed".
This is the comment of Il Sole 24 Ore , signed by Beda Romano, on the European Commission's guidelines for the use of the Recovery fund.
Here are details and insights on the guidelines.
The European Commission proposed yesterday that at least 20% of investments from the Recovery Fund go to finance the digital transition. The proposal is contained in precise and stringent guidelines published by the community executive and which governments will have to take into account in preparing national plans aimed at obtaining the disbursement of the money and helping the economic recovery, wrote Il Sole 24 Ore : “In total, 672.5 billion euros will be available to countries on this specific front”.
THE NUMBERS
The Recovery Fund has a value of 750 billion euros, of which 672.5 billion will be distributed directly to national governments; more precisely 312.5 billion in subsidies and 360 billion in loans (the remaining amount will be disbursed through the EU budget
THE DETAILS OF THE GUIDELINES FOR RECOVERY FUND
The 20% share dedicated to the digital transition is in addition to the 37% reserved for the climate transition (also taking into account the EU budget). The European Commission documentation reads: the share reserved for digital must be used to "invest in the spread of 5G and Gigabit connectivity, develop digital skills through reforms of education systems and increase the availability and efficiency of public services using new digital tools ".
WHERE THE MONEY FROM THE RECOVERY FUND SHOULD GO
More generally, explains Brussels, national plans must pursue seven objectives: promoting clean energy; improve the energy efficiency of public and private buildings; develop new technologies in transport; strengthen the broadband network, in particular 5G; digitize the public administration, the judiciary and the health sector; ride the data economy; and adapt the education system to new needs. The starting point is the country recommendations.
THE TIMES OF RECOVERY
At the latest by 30 April 2021, governments will have to present recovery plans containing the reforms indicated in the EU recommendations of 2019 and 2020, and projects on clean technologies and renewable sources, energy efficiency of buildings, extension of public transport, broadband, fiber and 5G, digitalization of public administration, strengthening of digital skills for all ages: this is what the EU Commission writes in the guidelines for the use of the Recovery fund , underlining how the plans must "increase economic potential, create jobs and strengthen resilience ". The guide “aims to help states prepare high-quality national plans in line with common objectives. Not only so that the funds can arrive as soon as possible, but also because they are the impetus for a real transformation ”, said the Commissioner for Economy Paolo Gentiloni.
WHAT THE EU COMMISSION SAYS
In the guidelines, the Commission illustrates the "transparent" criteria with which it will evaluate the recovery plans. In particular, "it will consider whether investments and reforms contribute effectively to addressing the challenges identified in the country-specific recommendations, whether they contain measures that help the green and digital transition, and whether they contribute to strengthening growth potential, job creation of work and social and economic resilience ".
THE FUNDS OF THE RE-LAUNCH PLAN
The Recovery funds “are consistent with a broad concept of investment in capital formation, that is fixed capital, such as infrastructures, buildings, but also research and development and therefore patents or software. Human capital, i.e. expenditure on health, social protection, education, training. And natural capital, that is, an increase in renewable energy sources, environmental protection or adaptation to climate change ”. The reforms must include those actions that have a “lasting improvement in the functioning of markets, institutional structures, public administrations”, continues Brussels.
THE EVALUATIONS OF THE EU COMMISSION
The Commission's assessment will have to be approved by the Council in an 'ad hoc' decision. Given the very close link between Recovery plan and EU recommendations of the past years, the Commission will not present new recommendations in May 2021 for those countries that have submitted their plans. “Progress on reforms and investments will be measured through targets”, set by the States themselves in agreement with the Commission, and “must be realistic, clear, well defined, verifiable, and directly determined or influenced by public policies. Based on the completion of the targets indicated in the plan, the States will submit a request to the Commission for the disbursement of financial support ”, explains the EU communication. The Commission will then prepare an evaluation which it will submit to the Ecofin Sherpas. In exceptional circumstances, if a state considers that there are serious deviations from the plan, it can request the intervention of the European Council and the Commission can block the disbursement.
THE DEVIATION
The Twenty-seven have decided that a committee of the Council will give its evaluation. Should there be a "serious deviation" from the commitments made by individual governments, the President of the European Council will be able to refer the matter to the heads of state and government. The first funds could be disbursed in the first half of 2021.
TIMES
The community guidelines reiterate that the deadline for presenting the national plan is 30 April 2021, but urges governments to present a draft as early as 15 October, as Commissioner Gentiloni had already mentioned in a parliamentary hearing .
THE COMMENT OF THE SUN 24 HOURS
“In fact, the Recovery Fund becomes an instrument in the hands of Brussels to try to impose the modernization of national economies that some countries have failed in 20 years of the single currency. The ultimate goal is to create a virtuous circle between investments and reforms. On how the money will be spent, the Commission expects national plans to provide for specific internal control mechanisms to avoid fraud or theft ”, commented the editorialist Beda Romano of Sole 24 Ore .
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/ecco-come-utilizzare-i-soldi-del-recovery-fund-tutti-i-paletti-di-bruxelles/ on Fri, 18 Sep 2020 13:00:29 +0000.