**Belgium may receive EUR 1.35 billion less in European recovery funds than initially anticipated. The reason for this is the economic growth, which is stronger than expected. This is what State Secretary for the Budget Eva De Bleeker (Open Vld) has announced. The final amount will only be determined in June 2022, but if it is lower “that will have an effect on all governments”, according to the State Secretary.**
To deal with the consequences of the corona crisis, the European Commission set up a corona recovery fund of 750 billion euros in the summer of 2020. The Recovery and Resilience Facility, or RRF, is the most important portfolio therein. It includes more than EUR 337 billion in grants and another 360 billion in low-cost loans. This money is distributed among the Member States according to a specific distribution key. Belgium can count on a little over EUR 5.9 billion.
However, this amount could be lower, warns State Secretary De Bleeker. According to the latest calculations of the Federal Public Service Policy and Support, based on the autumn estimate of the European Commission, Belgium has to make do with 4.55 billion Euros. This has everything to do with the strong economic growth in our country. The European Commission adjusts the amounts for the member states partly on the basis of that growth, says De Bleeker: 30 percent of the distribution of the amount is based on the actual economic growth in 2020 and 2021.
**”Targeting resources**
How much recovery money the member states will actually receive will not be determined until June next year. The amount can therefore still change, among other things because of the additional impact of the coronapandemic on growth. De Bleeker calls it “crucial” to keep monitoring the figures closely. State Secretary for Relance Thomas Dermine (PS) might have to adjust his plans. That also applies to the other governments in the country, but “challenges are there to be met”, says De Bleeker. “The different governments in our country will have to look at how they use the available relance resources in the best and most targeted way possible.”
Flemish Minister of Finance and Budget Matthias Diependaele (N-VA) emphasises that the Flemish recovery plan will be implemented “in full”. He finds it “sour” that Europe “punishes the good governance of the best students in the class and thus the countries or regions where the economy has recovered faster”. “In this way, the EU seems increasingly to be becoming a transfer union. The countries that are doing less well are being rewarded in this way”, it sounds.
You could say that that’s what wealth redistribution means.
Europe is a group, not a bank
>De reden daarvoor is de economische groei, die sterker uitvalt dan verwacht. Dat laat staatssecretaris voor Begroting Eva De Bleeker (Open Vld) weten. Het definitieve bedrag wordt pas in juni 2022 vastgelegd, maar als het lager uitvalt “zal dat effect hebben op alle overheden”, aldus de staatssecretaris.
Soooo getting less “relance” money because economy is doing better? Sounds logical.
And the government is panicking… because???
Thats a weird way to frame stronger than expected economic recovery…
5 comments
**Belgium may receive EUR 1.35 billion less in European recovery funds than initially anticipated. The reason for this is the economic growth, which is stronger than expected. This is what State Secretary for the Budget Eva De Bleeker (Open Vld) has announced. The final amount will only be determined in June 2022, but if it is lower “that will have an effect on all governments”, according to the State Secretary.**
To deal with the consequences of the corona crisis, the European Commission set up a corona recovery fund of 750 billion euros in the summer of 2020. The Recovery and Resilience Facility, or RRF, is the most important portfolio therein. It includes more than EUR 337 billion in grants and another 360 billion in low-cost loans. This money is distributed among the Member States according to a specific distribution key. Belgium can count on a little over EUR 5.9 billion.
However, this amount could be lower, warns State Secretary De Bleeker. According to the latest calculations of the Federal Public Service Policy and Support, based on the autumn estimate of the European Commission, Belgium has to make do with 4.55 billion Euros. This has everything to do with the strong economic growth in our country. The European Commission adjusts the amounts for the member states partly on the basis of that growth, says De Bleeker: 30 percent of the distribution of the amount is based on the actual economic growth in 2020 and 2021.
**”Targeting resources**
How much recovery money the member states will actually receive will not be determined until June next year. The amount can therefore still change, among other things because of the additional impact of the coronapandemic on growth. De Bleeker calls it “crucial” to keep monitoring the figures closely. State Secretary for Relance Thomas Dermine (PS) might have to adjust his plans. That also applies to the other governments in the country, but “challenges are there to be met”, says De Bleeker. “The different governments in our country will have to look at how they use the available relance resources in the best and most targeted way possible.”
Flemish Minister of Finance and Budget Matthias Diependaele (N-VA) emphasises that the Flemish recovery plan will be implemented “in full”. He finds it “sour” that Europe “punishes the good governance of the best students in the class and thus the countries or regions where the economy has recovered faster”. “In this way, the EU seems increasingly to be becoming a transfer union. The countries that are doing less well are being rewarded in this way”, it sounds.
Translated with http://www.DeepL.com/Translator (free version)
You could say that that’s what wealth redistribution means.
Europe is a group, not a bank
>De reden daarvoor is de economische groei, die sterker uitvalt dan verwacht. Dat laat staatssecretaris voor Begroting Eva De Bleeker (Open Vld) weten. Het definitieve bedrag wordt pas in juni 2022 vastgelegd, maar als het lager uitvalt “zal dat effect hebben op alle overheden”, aldus de staatssecretaris.
Soooo getting less “relance” money because economy is doing better? Sounds logical.
And the government is panicking… because???
Thats a weird way to frame stronger than expected economic recovery…