Member States’ ambassadors to the European Union (Coreper) discussed on Wednesday 10 June the investment needs and criteria for allocating EU funds identified in the Recovery Plan for Europe, which complements the revised proposal for the Multiannual Financial Framework (MFF) 2021-2027 (see EUROPE 12502/22).
Several Member States - Belgium, Ireland, Luxembourg, Malta, Cyprus - said they did not see themselves in the European Commission’s analysis of investment needs and/or the criteria for allocating European funds. They believe they are paying the price for additional aid to revive the economy crippled by the Covid-19 pandemic. Belgium and Ireland also mentioned the scenario of a no-deal Brexit, at the end of 2020, which would deepen the recession.
Many Member States are of the opinion that allocation criteria, such as falling GDP and rising unemployment, should be more dynamic in order to better quantify the impact of the crisis resulting specifically from the coronavirus and target aid towards the territories and sectors most affected.
Spain, Greece and Italy also stressed the importance of the ReactEU budget increase (around 50 billion euros) allocated to cohesion policy. Potentially mobilisable from September 2020, this extension can be made available quickly, while the Recovery and Resilience Facility, a major pillar of the recovery plan (310 billion in grants and 250 billion in loans), will take longer to put in place.
The link between the Recovery Plan and the EU’s strategic priorities (European Green Deal, digital transition) is welcomed. The Netherlands even advocates raising the target of devoting 25% of the post-2020 MFF to climate transition. Hungary and Poland advocate flexibility in this area.
These discussions, which lasted 5 hours, will continue on Friday 12 June. Coreper will look at the instrument for solvency support for companies and the InvestEU programme. It will also address the revised proposal for the core MFF of 1,100 billion euros (see EUROPE 12494/1).
The Croatian Presidency of the EU Council may prepare a summary document for the General Affairs Council on Tuesday. (Original version in French by Mathieu Bion)