Ten European Union countries have requested additional loans under the NextGenerationEU Recovery Plan, according to a European Commission note from mid-April.
Member States had until the end of March to indicate their intentions. Only Latvia and Romania had not done so at the time the note was published.
According to the data compiled by the European institution, the 10 countries seeking additional loans are as follows: - Spain has requested €84 billion in loans, while its initial recovery plan did not include any (see EUROPE 12759/9); - Poland has requested just over €23 billion in loans, while its initial recovery plan foresaw a loan package of €11.5 billion (see EUROPE 12974/6); - Portugal has requested up to €11.5 billion in loans, while its initial recovery plan called for €2.7 billion in loans (see EUROPE 12759/9); - the Czech Republic has requested up to €11 billion in loans, while none were included in the original recovery plan (see EUROPE 12784/1); - Hungary has requested up to €6.6 billion in loans, while its initial recovery plan did not include any; - Greece has requested €5 billion in additional loans, while its initial recovery plan already included €12.7 billion in loans (see EUROPE 12929/20); - Croatia has requested €3.6 billion in loans, while its initial recovery plan included none (see EUROPE 12769/1); - Lithuania has requested €1.8 billion in loans, while none were included in its original recovery plan (see EUROPE 12759/9); - Belgium has requested just over €1 billion in loans, while none were included in the original recovery plan (see EUROPE 12769/1).
Italy, which is already benefitting from €122.6 billion in loans (see EUROPE 12759/9), has indicated that it is seeking additional loans, but has not specified the amount.
The total requested loan support at this stage amounts to €147.6 billion, meaning that around €80 billion of loans remain available until the end of August, the legal deadline for loan applications.
The Commission indicates that it will make a fair and proportionate distribution of the available funds. For those countries - Italy, Romania and Greece - whose claims exceed the legal limit (6.8% of GNI), claims will be assessed in light of the revised plans submitted and the reasons given for exceeding the limit, such as the existence of exceptional circumstances.
See the Commission’s note: https://aeur.eu/f/6ua
The question of the distribution of the loan component of the European Recovery Plan is expected to be discussed at the ‘Ecofin’ Council on Tuesday 16 May.
In a preparatory note for the discussions on the implementation of the RRF, the financial arm of the European Recovery Plan, the Swedish Presidency of the Council of the EU notes that the tightening of borrowing conditions on the capital markets and the need to finance the ‘REPowerEU’ chapters aimed at accelerating independence from Russian fossil fuels explain why more Member States are now inclined to take advantage of the EU’s soft loans.
The Swedish Presidency also wants to ask the EU finance ministers about the benefits of a budgetary instrument that makes the payment of aid conditional on reforms and investments.
See the Swedish note: https://aeur.eu/f/6u9 (Original version in French by Mathieu Bion)