The First Life-Saving Payments from the NextGenerationEU Program Have Started Arriving to Member States

The European Commission has begun disbursing pre-financing to the first member states of the European Union under the NextGenerationEU recovery program, established to address the economic and social damage caused by the spread of the coronavirus. In the initial pre-financing in August, Belgium received 770 million euros, Portugal 2.2 billion, Luxembourg 12.1 million, and Greece four billion euros.

These amounts represent 13 percent of the approved state aid and loans under the Recovery and Resilience Facility (RRF), which came into effect in February and will finance reforms and investments until the end of 2026. It is expected to have a significant impact on the European economy and society.

Generous Aid

Belgium is set to receive a total of 5.9 billion euros in non-repayable funds, while Portugal will receive 16.6 billion euros, of which 13.9 billion is non-repayable, and the remainder consists of loans. Luxembourg will receive 93.4 million euros in non-repayable funds, and Greece will receive 30.5 billion euros, which includes 17.8 billion in non-repayable funds and 12.7 billion euros in loans.

According to the NextGenerationEU plan, a total of 806.9 billion euros will be allocated to member states (at current prices, while the original amount of 750 billion euros was based on 2018 prices). 11.5 billion euros is earmarked for the single market, innovation, and the digital economy, 776.5 billion for cohesion, resilience, and values, and 18.9 billion euros for natural resources and the environment.

Greece will connect with the Cyclades Islands in its recovery plan by investing 645 million euros, which will increase the potential for using renewable energy sources, and with 375 million euros, it will encourage the adoption of digital technologies, especially among small and medium-sized enterprises. 740 million euros will be allocated for increasing employment and assisting the unemployed.

Numerous Investments

The Portuguese program foresees an increase in energy efficiency for residential buildings with 300 million euros, which is also allocated for modernizing the computer systems of the National Health Service and digitizing medical documentation. 130 million euros will support the expansion of scientific departments in local high schools and universities.

Luxembourg plans to expand the network of charging stations for electric vehicles with 30.5 million euros and invest 10 million euros in a highly secure communication network based on quantum technology. Belgium plans to adapt better to climate change with 400 million euros and invest 480 million euros in strengthening the education system and promoting science, technology, engineering, and mathematics (STEM).