The MEPs approved this Wednesday, February 10 the massive stimulus fund intended to help EU countries face the coronavirus crisis, but the release of 672.5 billion euros should not take place for several months.
This “Ease for recovery and resilience” in the form of subsidies (312.5 billion) and loans (360 billion) for the Member States, obtained the green light from the European Parliament, by 582 votes in favor, 40 against and 69 abstentions.
This is the main pillar of the recovery plan « Next Generation EU », which has a total budget of 750 billion euros, approved by the Twenty-Seven at the top last year.
The 27 countries must ratify the agreement
It is financed by an unprecedented common debt. But the decision allowing the Commission to borrow on the markets has yet to be ratified by all Member States.
At present only six countries, including France, have ratified this agreement on “Own resources”. However, before such a procedure, sometimes involving national or regional parliaments, has taken place in all the 27, no disbursement can take place.
“We expect national parliaments to speed up the ratification of the increase in the Union’s own resources […] There’s no time to lose. Any delay would cause enormous damage to citizens and businesses ”, urged the President of the European Parliament David Sassoli.
Spain is the main beneficiary of subsidies (69.5 billion euros), followed by Italy (68.9 billion), then France (39.4 billion).
Start of payments for mid 2021
According to the Commission, payments could start from the “My-2021”. Some 70% of grants are due before the end of 2022, the rest before the end of 2023.
To be entitled to these European funds, the governments of the Member States must submit to the Commission by the end of April their stimulus plans detailing the reforms and investments planned.
Each national plan must devote at least 37% of its budget to climate measures and at least 20% to digital transformation.
The Commission also assesses them against criteria of effectiveness, safeguards against fraud, corruption and conflicts of interest, and consistency.
Access to European funding is also conditional on compliance with “The rule of law and the fundamental values of the EU”.
So far, 18 Member States have presented their draft plan to the European executive, in whole or in part, six countries have unveiled some elements, and three are still at the discussion stage.
Once the final plan has been received, the Commission has two months to take a decision and make a proposal to the Council, the institution representing the Member States, which must approve it by qualified majority.
The Commission, responsible for monitoring the plans, may be invited to appear before the European Parliament every two months to examine the States’ compliance with their objectives.
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