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Head of the EU Commission von der Leyen, Portugal's Prime Minister Costa: Personal handover of the decision
Photo: TIAGO PETINGA / EPA
Almost a year after the EU decided on a large corona development program, Spain and Portugal are the first member states to have a chance of money. The EU Commission has approved the development plans of both countries, specifically 69.5 billion euros for Spain and 16.6 billion euros for Portugal. Commission head Ursula von der Leyen traveled personally to the capitals of Lisbon and Madrid to hand over the notices. Payouts are expected to start in July; the Council of EU countries has to agree beforehand.
The money comes from the RRF development fund, the heart of the program agreed in summer 2020 with a volume of 750 billion euros. Adjusted for inflation, the total is around 800 billion euros. This is intended to give the European economy a boost after the pandemic and modernize it at the same time. The money comes partly as a grant and partly as a loan. The program is financed through joint debts.
Portugal and Spain were among the first to apply at the end of April. Both are heavily dependent on tourism and suffered severe economic damage as early as 2020. Portugal's gross domestic product collapsed by 7.6 percent, Spain's by as much as 10.8 percent. Unemployment rose to 7.1 percent in Portugal and 16 percent in Spain in early 2021. Both countries responded with their own economic stimulus programs, which, however, each drove the national debt to more than 130 percent of economic output.
All states had to submit detailed construction plans to the EU Commission.
At least 37 percent of the funds should flow into climate-friendly projects and a further 20 percent into digitization.
In addition, recommendations for reform are to be implemented.
The commission had two months to examine and the amounts approved corresponded to the applications.
The 69.5 billion euros for Spain are exclusively grants that do not have to be repaid.
In the case of Portugal, it is about 13.9 billion euros in grants and 2.7 billion euros in loans.
If the EU Council of Ministers agrees, the first installments can be expected to flow in July.
For Spain that would be nine billion euros, for Portugal 2.2 billion.
Further rates depend on whether defined milestones are implemented correctly.
The CSU MEP Markus Ferber criticized the fact that the commission carried out the examination of the plans at a "breathtaking pace".
"If the checks are sloppy, you shouldn't be surprised that the member states are submitting questionable projects to you," said the finance expert.
The Spanish plan also contains hardly any major reforms.
The Green MP Sven Giegold called criticism from Germany, however, little credible.
The federal government itself only submitted a "copy-and-paste plan" of the German economic stimulus package to the commission.
"Germany uses the EU funds to plug budget holes," warned Giegold.
Von der Leyen has announced that he will visit all 27 member states to discuss the development plans.
Greece, Denmark and Luxembourg will follow this week.
fdi / dpa