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From Brussels with love: the secret to spending the recovery fund
(EurActiv, 16 Apr 2021) The post-COVID recovery funds need to be spent quickly by member states already struggling with absorption rates. President Ursula von der Leyen and Executive Vice-President Frans Timmermans need to promote the help available, writes Brook Riley.
Brook Riley is head of EU affairs at the Rockwool Group, a world leader in building insulation.
Never before has so much money had to be spent so quickly by so few people – if Winston Churchill was around today that is probably what he would say about the EU recovery funds.
There will be up to €750bn in the Next Generation Fund, but the money will be out of reach if it isn’t spent by the end-of-2026 deadline, and counter-productive if it does not prioritise climate action.
The fact is raising money is a lot easier than spending it well. The Commission’s budget directorate is already borrowing billions at near-zero interest rates for unemployment support. The recovery fundraising will be the same on a bigger scale.
True, the German constitutional court is holding up formal ratification of the recovery funds. But it took the same line with the European Central Bank’s pandemic emergency programme, which went ahead anyway. Sooner or later, the money will be available.
And therein lies the problem. Member states are already struggling to absorb their share of the standard seven-year EU budget. How are they going to cope with a 60% increase in funding?
And therein lies the problem. Member states are already struggling to absorb their share of the standard seven-year EU budget. How are they going to cope with a 60% increase in funding?
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EurActiv, 16 Apr 2021: From Brussels with love: the secret to spending the recovery fund
