So far, only five European Union countries have submitted to the European Commission their plans to use emergency fund funds after the coronavirus crisis. Meanwhile, the European Commission originally set a deadline today for her to be delivered. Although the commission now confirms that it prefers the quality of the plans to timely delivery, the subsequent handover may delay the first payment originally planned for the summer.
Brussels will allocate funds from a package totaling 672.5 billion euros (about 17.5 trillion CZK) based on national recovery plans. In these, member states are required to define how they intend to meet the requirements of reforms and meet, among other things, the mandatory share of funds allocated to environmental or digitization projects.
So far, the Commission has received plans from the largest member states of Germany and France, along with handing over of the presidency by Portugal, Slovakia and Greece. Other countries usually say they are finalizing plans.
According to the original ideas, the Czech government had a Minister of Industry and Trade Karel Havlicek Discussing the plan before the end of April and sending it to the authority immediately, which it was unable to do. The Czechs can receive up to CZK 172 billion from the fund in grants (with a reserve of CZK 191 billion), and then they will be able to borrow another 405 billion CZK.
“We expect more member states to send their plans in the coming weeks,” a UNHCR spokeswoman told reporters today. Marta Vechurikova. European Commission officials want to put together plans during May that could delay the first money payments by up to a month, contrary to the original ideas.
The commission has two months to evaluate the plans and create a binding link for the withdrawal of the funds. In addition, all member states must ratify the increase in their guarantees to the Union’s budget, as the Commission intends to guarantee the loan that it will receive from the financial markets of the Fund. This process was complicated, for example, by disagreements in the ruling coalition in Poland.
Only after these conditions are met can countries withdraw the first money. As part of the pre-funding, they can receive up to 13 percent of all direct grants. However, concerns have already begun in some countries that the first money from the fund will not reach them until the fall due to the delay.
This is what the European Commissioner for the Budget indicated Johannes Hahn, According to which the commission can get around 15 billion euros per month at the best interest rate in the market. However, the aforementioned 13 per cent of the grant package that countries will receive in the first phase is around € 45 billion. Accordingly, the committee will receive it in full about three months after the start of borrowing.
Brussels is not yet clear how much it will have to borrow. Of the total mentioned amount, direct subsidies amount to 312.5 billion euros, and the rest 360 billion are for loans. So far, not all member states have expressed interest in depleting their loan allocations. However, according to the commission, they could do so in the coming months and years.
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