There is less left for the launch of the European recovery fund of 800,000 million euros. The European Commission has confirmed that all Member States have completed all the fringes to be able to go to the markets and issue a volume of community debt unprecedented in the history of the EU.
As planned, the 27 national parliaments completed by the end of May the ratification process of the Own Resources Decision, the EU legislation that allows the Commission to issue European debt to finance the recovery fund.
Gert Jan Koopman, head of the Commission’s General Budget Directorate, reported yesterday on Twitter that all Member States completed the approval process and that the Community Executive will go to the markets in June. The institution is expected to issue between € 30 billion and € 40 billion before the summer holidays , and around € 150 billion a year until 2026.
The first transfers from the recovery fund, 13% of the pre-financing , will begin to reach the capitals at the end of July, once the Commission approves the proposals for reforms and investments presented by the governments to unlock the resources. Spain will receive around 9,000 million euros as part of this first transfer of pre-financing of the plans.
To date, a total of 21 Member States have submitted their recovery plans: Belgium, Denmark, Germany, Greece, Ireland, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Austria, Poland, Portugal , Slovenia. , Slovakia, Finland and Sweden.
The Commission will approve the first plans at the end of June, and the Council will have an additional month to give its approval from the Commission’s verdict. Member states tried to shorten the Commission’s two-month evaluation process, given that it has been discussing draft plans with some governments like Spain since last October.
However, the Community Executive has repeated that it will exhaust all the planned time, given the immense amount of information presented by the capitals and the need to translate each recovery plan into legislation to make them binding.