Government briefed on the report on the implementation of the Recovery and Resilience Plan
Before filing its first request for the payment of Recovery and Resilience Facility grants, the Government was briefed on the report on the implementation of the Recovery and Resilience Plan.
The Recovery and Resilience Plan (RRP) is a national programme of reforms and investments financed by funds from the European Recovery and Resilience Facility. In financial terms, the Facility is the largest part of the NextGenerationEU package for European recovery and resilience. In accordance with the purpose of these funds, Slovenia will, as part of its plan, implement measures to mitigate the economic and social consequences of the COVID-19 pandemic in Slovenia, while at the same time addressing the challenges of the green and digital transitions. Planned measures will be implemented by the end of 2026. In the current version of the Slovenian RRP, which the EU Council confirmed in July 2021, the planned measures include EUR 1.78 billion in grants and EUR 705 million in loans. According to the latest calculations reported by the European Commission (EC) in June this year, Slovenia will be entitled to EUR 286 million less in grants, for a total of EUR 1.49 billion because of its improved GDP in 2021.
Back in September 2021, Slovenia received a prepayment of grants from the Facility in the amount of EUR 231 million. Of that amount, ministries have already received EUR 156.2 million for the implementation of measures. The majority of funds are earmarked for the implementation of projects to renovate the railway infrastructure (the upgrading of the Ljubljana-Jesenice and Ljubljana-Divača lines, and the upgrading of the railway station in Grosuplje). The EC wishes to connect the utilisation of NextGenerationEU funds even more closely with the implementation of reforms. That is why it has included the Facility in the new cycle of the European Semester. Member States can only draw funds to implement investments if they carry out the associated reforms. Member States may only draw funds from the Facility after they have met the predefined milestones and objectives agreed with the EC. Slovenia will draw funds from the Facility in 10 instalments for direct grants and in six instalments for loans.
This week, Slovenia will send the EC its first request for payment of the first instalment of grants from the Facility. The gross value of the request is EUR 57 million. The actual payment will likely amount to around EUR 49.6 million, as the EC will deduct part of the prepayment that has already been received. Slovenia estimates that it has fulfilled all 12 milestones for the first request. In accordance with the legislative framework for the Facility’s implementation, the EC must evaluate if the milestones and objectives have been implemented satisfactorily within two months after receiving a request.
The Government also discussed progress in the achievement of milestones and objectives from the second and third instalments of direct grants and the first loan instalment. It was also briefed on activities to accelerate the implementation of measures and new developments regarding the possibility of adjusting the RRP. An adjustment to the plan is foreseen due to a reduction in the allocation of grants, macroeconomic developments and risks connected with the war in Ukraine, and the effect of inflation on the implementation of planned investments. The Government will reach a decision on how the RRP will be adapted financially and in terms of content in the coming months.
Additional information regarding the Recovery and Resilience Plan: noo.gov.si.