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The Council of the European Union approves the amendment to Slovenia's Recovery and Resilience Plan

Today, the Council of the European Union comprising finance ministers approved the amendment to Slovenia's Recovery and Resilience Plan. The revised plan, which now includes a REPowerEU chapter, is worth EUR 1.61 billion in grants and EUR 1.07 billion in loans. This brings the total value of EU funding for the Recovery and Resilience Plan to EUR 2.68 billion.

Today, Member States' finance ministers gave their final approval to the positive assessment of the proposed amendment to the Recovery and Resilience Plan (RRP), an assessment issued by the European Commission (EC) on 29 September 2023.

On 14 July 2023, the Slovenian Government launched a formal dialogue with the EC to amend Slovenia’s RRP, which is the basis for the use of the Recovery and Resilience Facility (RRF). In the proposed amendment, the Government focused on:

  • additional EU funding to achieve the objectives of the REPowerEU plan (EUR 122 million, i.e. EUR 117 million from the EU Emissions Trading Scheme's Market Stability Reserve and EUR 5 million from the European fund to help Member States cope with the negative consequences of Brexit),
  • the reduction of the available grants under the RRF (Slovenia is eligible for EUR 286 million less in grants due to its better development),
  • additional loans from the RRF and
  • other objective circumstances (high inflation and supply chain disruptions due to the war in Ukraine).

Through the activities foreseen in the new REPowerEU chapter, Slovenia will contribute to the objectives of the REPowerEU plan to reduce dependence on Russian energy and accelerate the green transition. It will strengthen its electricity distribution network, increase energy efficiency, and strengthen efforts to decarbonise the economy. Furthermore, it will simplify regulations for solar and wind plants, increase renewable energy capacity in district heating systems and boost zero-emission public and private transport.

For investments that are excluded from the RRF or financially adjusted due to the reduction in available grants from the RRF and that are important for Slovenia's recovery and resilience, the Government will seek to secure other funding sources.

Under the RRP investment to reduce flood risk and the risk of other climate-related disasters, EUR 265 million (EUR 45 million in grants and EUR 220 million in loans) is available under the amended RRP. Of this amount, a total of EUR 240 million (EUR 20 million in grants and EUR 220 million in loans) is available for flood risk reduction.

The new plan is to use up to EUR 1.07 billion in RRF loans. The investments to be funded by Slovenia with additional loans include an increase in two investments under the RRP's original version and three new investments. Additional loans will be used to fund, among other things, the renovation and expansion of the Ljubljana and Nova Gorica railway stations, and of the Brezovica-Preserje-Borovnica and Bled-Jezero-Bohinjska Bistrica railway sections. Additional loans will also fund investments in sustainable building renovation.

With the increase in REPowerEU grants and RRF loans, Slovenia is further strengthening its efforts towards the green transition. Out of the total funding available under the RRP, 48.9% will be directed towards climate-related objectives.

To date, Slovenia has received EUR 281 million in RRF grants, including EUR 50 million as the first instalment and EUR 231 million in advance payments. A second payment request is under consideration by the EC, containing the second and third instalments for grants and the first instalment for loans. The gross value of the second payment request, sent by the Government to the EC last month, is EUR 614 million. The net amount will be lower as the EC will take into account the pro-rata share of the grant advance already received. The approval of the amendment to the RRP by the Council of the European Union allows Slovenia to request an advance of EUR 24 million from the REPowerEU plan.

The website, which also provides information on drafting and coordinating the amendment to the RRP, will be updated later this month with materials related to the amendment to the RPP, including a summary of the amendment.