Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Some EU countries to miss April deadline for recovery plans: Commission

EconomyApr 16, 2021 03:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. News conference following a European Union finance ministers meeting in Brussels

By Jan Strupczewski

BRUSSELS (Reuters) - Some European Union governments will miss the April 30 deadline to submit their recovery plans to the European Commission, its Vice President Valdis Dombrovskis said on Friday, but they are still likely to submit the plans within a few weeks afterwards.

The delay in the submission of some of the national plans, which spell out how each government wants to spend its share of the EU's 750 billion euro joint borrowing scheme, will not delay the scheme as a whole, Dombrovskis told a news conference.

"Some Member States are nearly there and submitting their plans by the end of April is achievable. For others, it looks more difficult. Finalisation will require somewhat more work for a couple of more weeks," Dombrovskis said.

The 27 national plans are blueprints for spending grants and loans that each EU country will get from the unprecedented joint borrowing by the European Commission to rebuild economies greener and more digital after the COVID-19 pandemic.

To get the money, each country has to earmark 37% of the funds to reduce CO2 emissions and 20% to make the economy better prepared for the digital age through investment and reforms that will get piecemeal financing from the EU until 2026.

It is the long time horizon of the investments and reforms, as well as the need to allocate the prescribed percentage of the cash to certain areas, that is challenging for governments.

"For a vast majority of Member States, plans are in very advanced stages and are going to be submitted either by end of April or maybe a in a next couple of weeks after the end of April," he said.


A few weeks slippage in the submission of some plans will not derail the whole programme because for any of the grants or cheap EU loans to flow to governments, 27 national parliaments need to first ratify their own increased budget guarantees for the overall EU budget. These commitments are the ultimate security for the borrowing, ensuring it will be repaid.

This is likely to take longer than the preparation of the spending plans -- so far up to 17 countries have ratified the increased guarantees, called the Own Resources Decision, and others were expected to do so soon.

But the process is held up in several countries for various reasons. For example, in Germany the constitutional court is probing if it is in line with German law, in Poland the decision is subject to domestic political infighting and the Netherlands is struggling to form a ruling coalition after elections.

Yet without all 27 national ratifications, the Commission cannot start borrowing and no government can get any funds.

"If the Own Resources Decision ratification is completed in all Member States in June, and we are confident that this is going to be the case, then we can, as European Commission, go to the markets and do the borrowing and make first disbursements in July," Dombrovskis said.

The amount that EU governments can get up-front this year, before any of the investments and reforms start, is 13% of their total share. Since most will want primarily the grants part of the funding, the total EU cash injection this year is likely to be around 44-45 billion euros.

Some EU countries to miss April deadline for recovery plans: Commission

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email