Brussels – Now more than ever, we must focus on what we can actually do. The European Commission wants to protect the recovery plans (NRRP) and, even more so, the Recovery Fund resources that finance them, by endorsing changes to national strategies that will allow the money to be used effectively within the planned timeframe and prevent the programme from failing. The Ecofin Council approved, in one fell swoop, the proposed amendments to the NRRPs of six Member States (Finland, Germany, Ireland, the Netherlands, Spain, and Sweden), with the aim of facilitating reforms and avoiding waste.
“Countries must be credible in their assessment of how European funds are used,” emphasised Economy Commissioner Valdis Dombrovskis at the end of the meeting, aware, like the governments, that the 31 August deadline for the use of the Recovery Fund and the implementation of the NRRPs is just around the corner. For this reason, the suggestion coming from Brussels and the directive to be followed is “to remove unfeasible projects with others that are more mature,” and at a more advanced stage, Dombrovskis continued. Now more than ever, the aim is to “simplify the plans” so that they are feasible and can be implemented.
In this race against time and in an attempt to make the NextGenerationEU post-pandemic recovery programme a success story that stands up to criticism, the goal is to ensure that national governments “prioritise the absorption of the guarantee portion over the loan portion,” Dombrovskis’ other point, which is not coincidental. Money disbursed in the form of guarantees is non-repayable and, as such, potentially lost if not spent. Loans, on the other hand, must be repaid and are therefore resources that will eventually, in 10 to 30 years, return to the EU executive’s coffers.
These fears expressed by Dombrovskis had already emerged in recent years during negotiations between Rome and Brussels over changes to Italy’s national recovery plan, which were approved by the EU executive precisely to avoid wasting resources. The sense of urgency and effectiveness in the use of Recovery Fund resources was also expressed by the President of the European Central Bank, Christine Lagarde, in her call to do well rather than soon. But the timetable cannot be changed, and now Dombrovskis is trying to help governments avoid making mistakes.
English version by the Translation Service of Withub
