About a year ago, the EU agreed on the Corona reconstruction fund. Countries have to say what they want to do with the money by the end of the week. Germany expects 25 billion – and wants to put it in two areas.
The European Union’s Corona Reconstruction Fund has a total volume of 750 billion euros. With the help of the money, the member states should lead their respective economies out of the coronavirus valley and at the same time provide impetus for important future investments and reform measures. The federal government expects EU subsidies of 25.6 billion euros (net without VAT). The gross expenditures mentioned in the federal budget are then a total of almost 28 billion euros. The Federal Cabinet approved Finance Minister Olaf Scholz’s plan of what exactly should be financed. Around 90 percent of the money is to be invested in climate protection and digitization.
Greens: Not new, just financed differently
“Climate protection is the greatest challenge of our time,” said Scholz at a joint press conference with France’s Finance Minister Bruno Le Maire. Around 11.5 billion euros are therefore earmarked for climate-friendly mobility, hydrogen and building modernization. More than 14 billion euros are expected to flow into the digital transformation. These investments should in turn have a positive effect on overall economic output and employment. The Greens criticized that Germany is now financing measures that are already planned – just differently. In addition, hardly any money flows into structural reforms. 80 percent of the measures in the development plan are already part of the German economic stimulus program, said Green European politician Sven Giegold. They are therefore not spending more on climate protection or digitization.
EU members commit to implementation
The construction aid agreed in summer 2020 is intended to help the 27 EU countries get back on their feet after the pandemic. Part of the money is available as grants and part as a loan. For the first time, the EU Commission is allowed to take on large amounts of debt for the 750 billion package. The largest sums are earmarked for Italy and Spain, which were particularly hard hit by the pandemic. Each individual state has to ratify the program and apply to the EU Commission for the specific use of the money in a development plan. EU Commission chief Ursula von der Leyen announced a detailed examination of whether the plans of the EU states meet the common high standards. “We know exactly where we want to go,” said von der Leyen. The goal is a greener, more digital and more crisis-proof Europe.
Money should flow in before the end of summer
Scholz wants to present Germany’s plan to the EU Commission this week – as do France, Spain and Italy. Italy, which is receiving more than 190 billion euros, wants to invest the money in high-speed trains, organic agriculture and judicial reform, among other things. Prime Minister Mario Draghi said it was about building the “Italy of tomorrow”. France’s Finance Minister Le Maire complained that the EU had lost too much time since the agreement on the reconstruction fund in July last year. China’s economy is already growing again and the US is booming. The EU must stay in the race. The EU Commission must therefore examine the national development plans as quickly as possible so that they can be approved by July at the latest. The money could then flow in before the end of summer.
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