Status: 07/13/2021 5:44 p.m.
The consequences of the pandemic in Europe are to be contained with hundreds of billions of euros. The EU finance ministers have now approved the first aid. The money should flow as quickly as possible – also to Germany.
From Jakob Mayr,
ARD studio Brussels
Many finance ministers came to the meeting with their colleagues in Brussels today in a particularly good mood. Some even spoke of a historic day – for example Andrej Sircelj from Slovenia, who currently holds the EU Council Presidency: “Because for the first time the EU Commission is supporting states by issuing bonds and now using the money to give them loans and grants forgives, “he said.
In June, the EU Commission placed the first bonds to collect money on the capital markets for European Corona aid – a total of 35 billion euros. The bonds were several times oversubscribed. The debts are to be repaid together by 2058.
Badly affected countries are receiving aid
The finance ministers have now given the green light so that the first down payments from the Corona reconstruction fund can flow in the coming weeks – to 12 countries whose national reconstruction plans were approved at the meeting. The EU Commission had previously given a positive rating. It is mainly about countries that are suffering severely from the economic consequences of the pandemic, such as Italy, Spain and France.
Germany can also expect an initial payout soon. According to EU Economic Affairs Commissioner Paolo Gentiloni, it is timely aid: “It is very important that the formal decision is taken precisely when the economic recovery has set in. That will increase the confidence of the markets in countries Reform and investment can begin. ”
Help should flow into future projects
A year ago, the EU heads of state and government approved the Corona aid fund worth 672.5 billion euros. The special feature: The money is given partly as loans, partly as grants that do not have to be repaid. Spain and Italy are the largest recipients with around 70 billion euros each by 2026. France will receive around 40 billion. Germany is entitled to up to 25.6 billion euros.
The support is intended to promote the upswing after the pandemic and flow into future projects. In order to get the money, the member states have to prove that they spend a fixed minimum share of the aid money on digital (at least 20 percent) and climate protection (at least 37 percent). The EU Commission examines the applications, then the Council of EU States approves them – as is now done.
Hungary has to keep waiting
According to Deputy Commissioner Valdis Dombrovkis, his agency will now enter into financial arrangements with the twelve countries whose plans have been approved to release the down payments of 13 percent of the respective total. That will be done by the end of the month. Of the 27 EU states, two have not yet submitted any development plans to Brussels, while 13 is currently being examined by the Commission.
In the case of Hungary, the experts in Brussels are paying particular attention. The Hungarian government is in an ongoing dispute with the EU over the rule of law in the country. Most recently, Budapest was criticized for a law that restricts children and young people’s access to media that address sexuality that deviates from heterosexuality.
Commission President Ursula von der Leyen had called the law a shame. Her deputy, Dombrovskis, stated that an extension of the deadline for checking the Hungarian development plan could not be ruled out. A commission spokeswoman had recently stated that the examination could take months rather than days. Budapest is to receive 7.2 billion euros from the reconstruction fund.
Open the cash tap – 12 EU countries receive reconstruction aid, Hungary does not
Jakob Mayr, BR Brussels, July 13th, 2021 6:42 p.m.