The European Commission Recovery Fund – a step in the right direction
Today, the European Commission published a renewed proposal for the EU 2021-2027 multiannual financial framework, which includes the long-awaited recovery fund. It constitutes a financial package designed to deal effectively with the consequences of the COVID crisis.
In its proposal the Commission did not substantially change the proposal for the upcoming multiannual financial framework proposed by the Juncker Commission in May 2018. According to the new proposal, the total amount of funding is EUR 1,100 billion. In addition to this, the Commission proposes the creation of a new recovery fund amounting to EUR 750 billion, to provide Member States EUR 500 billion in grants and EUR 250 billion in the form of repayable funds. As a consequence, the Commission is also proposing amendments to 21 sectoral legislative acts related to the new EU Multiannual Financial Framework.
Ever since, Slovenia has advocated that the next multiannual EU budget be ambitious and future-oriented. Given the present situation, Slovenia believes that the European Commission's proposals are a step in the right direction and will certainly be of help in addressing the effects of the COVID crisis on the economies of the Member States. In doing so, the European Union will contribute through solidarity to the Member States' extensive efforts to relaunch the economy, and take a decisive step toward strengthening the EU internal market. Given the challenges we are facing, Slovenia considers it important for the European Council to reach an ambitious agreement as soon as possible.
As regards the European Commission's proposals, Slovenia will especially focus on priority areas such as cohesion policy, which has so far been an important source of public investment and which will contribute a significant share to eliminating the consequences of the COVID crisis. Since the crisis has severely affected all economies in the Union, it is legitimate to expect that Slovenia will also be among the recipients of funds from the new EU Budgetary Instrument for Recovery and Resilience.
Slovenia will consider the Multiannual Financial Framework and the Recovery Fund as part of one package, and it is our wish that an appropriate solution be found regarding the open issues that became apparent during the negotiations on the future Multiannual Financial Framework and which were suspended in February 2020. In this context, envelopes relating to the cohesion policy and rural development policy remain essential for Slovenia.
As regards the mentioned proposals, Slovenia will define its position in more detail after a thorough analysis, supported by appropriate calculations.