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Green projects eligible as EU throws another €40bn at Covid recovery

EU member states can use the latest disbursement of European Covid recovery funds to “finance green projects” as well as providing jobs, education and training; social care access; and working capital for small and medium-sized businesses affected by the health crisis.

The German presidency of the EU Council of Ministers, which will pass to Portugal on January 1, yesterday reached agreement with the European Parliament to allocate €37.5 billion of emergency Covid recovery funding to member states, with a further €10 billion set aside for next autumn.

And with the bloc using 2018 exchange rates to define the figure allocated, the bounty for this autumn – which can be handed out if member states endorse the move – actually comes in at €39.8 billion at yesterday’s rates.

The cash will be divided among member states based on their GDP and unemployment figures for June, July and August, meaning Covid-hit Italy is in line for the largest amount: €11.4 billion. Spain will receive €10.9 billion and there will be billion-euro-plus allocations also for France (€3.11 billion), Germany (€1.89 billion), Greece (€1.72 billion), Poland (€1.65 billion), Portugal (€1.6 billion) and Romania (€1.33 billion). Ireland will receive the smallest payout, with €89 million.

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The ‘Recovery Assistance for Cohesion and the Territories of Europe’ funding round will come out of EU structural funds, via the €750 billion Next Generation EU recovery instrument. The emergency nature of the handout is reflected by the fact member states will not have to contribute any of their own funds to the program to benefit.

Next year’s planned €10 billion payment will be divided up according to next autumn’s GDP and unemployment statistics.

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Source: pv magazine