European Commission (EC) appreciated Dutch Recovery and Resilience Plan (Herstel- en Veerkrachtplan - HVP). The decision was made on September 8th. The Netherlands has taken another step forward in receiving EU subsidies worth 4,7 billion euros.
HVP is part of the NextGenerationEU pan-European recovery plan after the coronavirus, for which 800 billion euros will be allocated. Most of these funds are intended for investment and reform in the EU. The funds allocated by NextGenerationEU will be provided in the form of grants or loans. Between the EU member states, funds will be distributed taking into account the population, GDP and the average unemployment rate over the past five years. Based on these figures, the Netherlands can count on 4,7 billion euros from the total funding of the NextGenerationEU plan.
In order to receive European funding under this plan, each EU state must submit a specific action plan to the European Commission. The submitted document is evaluated according to 11 criteria of the EU Regulation 2021/241. The main criteria are compliance with the EU plans for climate conservation and digitalization. In addition, the plan should contain a transparent mechanism for monitoring spending.
The HVP presented by the Netherlands includes 49 activities and is divided into six main areas:
- Promoting a green transition and addressing nitrogen emissions.
- Acceleration of the process of digital transformation of the state and society.
- Improving the quality of development and improving the housing market.
- Powerful labor market, provision of high pensions, education focused on the future needs of society.
- Health improvements and preparedness for possible pandemics.
- Combating tax evasion and money laundering.
About half of the European subsidies are planned to be spent on climate conservation measures. These include:
- investment in wind energy;
- building energy efficiency; and the adoption of a new energy law that is expected to facilitate investment in the electricity grid.
A quarter of EU subsidies are planned to be spent on projects to accelerate the digitalization of the Netherlands. Investments are planned in:
- quantum technologies;
- Artificial Intelligence;
- education focused on life and work in the conditions of digitalization of society;
- digitalization of the provision of public services.
The rest of the money will be spent on reducing the damage from nitrogen emissions, housing construction, health care, solving the problems of labor shortages in the labor market and the fight against tax evasion and money laundering.
HVP assessment by the European Commission
EC President Ursula von der Leyen said the plan proposed by the Netherlands will further strengthen the country's economy, making it greener, more digital and more sustainable. She added that the EC endorsed the HVP as the plan is ambitious and far-sighted, contributing to a better future for the people of the Netherlands. According to the EU requirements, the plan submitted by each country must provide at least 37% of the total amount for achieving climate goals, 20% for the transition to digital technologies. The Dutch HVP more than meets these targets, allocating 48% and 26% of subsidies to climate change and digitalization, respectively.
When can we expect funds to be released?
After approval by the European Commission, the plan must be considered and approved by the European Council. On this, according to the regulations, he has four weeks. Once approved by the EU's highest political body, the money will begin flowing to the Netherlands. Funds will be allocated in separate tranches over time. The speed of disbursement of funds will depend on the progress of the implementation of the measures envisaged by the Dutch plan.
Publication Date: 06.10.2022
