MEPs have referred to as for funding beneath the EU’s €650 billion post-Covid restoration mortgage scheme, set to run out on the finish of 2026, to be prolonged for 18 months for tasks which might be already underway.
Solely €315 billion of the Restoration and Resilience Facility, the EU’s landmark post-pandemic fund agreed in 2021, had been disbursed to EU international locations by the top of Could, leaving simply 19 months to spend the remainder earlier than expiry.
Earlier this month, the European Fee launched a plan to make it simpler for governments to say the cash. However the European Parliament accepted a decision in Strasbourg on Wednesday that urged the chief to go even additional.
With a 421 to 180 majority, MEPs adopted a report calling for an extension of the deadline for “mature tasks” – tasks which might be underway already – by 18 months.
“Except we act now, essential investments threat being left unfinished” on the finish of 2026 with out an extension, mentioned co-rapporteur Victor Negrescu, an MEP from the Socialists and Democrats.
EU international locations needed to submit nationwide plans that specify which tasks will profit from the restoration fund and what reforms they are going to make to please Brussels. They should show these tasks have reached sure targets by August 2026 earlier than receiving the ultimate tranches of money. The Fee says 68% of these targets are but to be reached.
On Monday, the commissioner in cost, Raffaele Fitto argued in opposition to an extension.
EU international locations ought to “overview their plans as quickly as attainable to solely retain measures that may be carried out by the top of August 2026,” he mentioned.
A recovery-fund type mannequin is beneath consideration for the EU’s subsequent long-term finances, sparking division amongst nationwide governments.
(om)
Keep forward of the curve with Enterprise Digital 24. Discover extra tales, subscribe to our e-newsletter, and be part of our rising neighborhood at nextbusiness24.com
