Koło nr 65

[joypaul852]

The European Union (EU) has managed to unblock its recovery plan after reaching a compromise for Hungary and Poland to lift their veto on it, but this does not put an end to the processing of the package of almost two billion euros in aid. which still must overcome several obstacles to come into force.

Although the deadlines for its approval are fair, it is most likely that the multiannual financial framework for Phone Number List will be validated in time for the budget to be in force on January 1, 2021, but the recovery fund and its 750 billion of euros in grants and loans could be delayed.

The first disbursements of the 140,000 million that correspond to Spain will probably begin to arrive in the summer. This is the path that the European post-covid plan must still travel to become a reality.

Financial framework 2021-2027

The process will begin this Friday, when the ambassadors of the 27 member states in Brussels must validate the commitment reached yesterday to unblock the agreement.

The countries will also have to unanimously give their approval to both the legislation of the 2021-2027 financial framework and the decision on its own resources, which establishes the budget's own financing mechanisms.

This decision is also the basis for the European Commission to issue the debt with which the recovery fund will be financed, since it raises the ceiling of own resources for Brussels to use as support for its emissions. Then it will be the turn of the European Parliament.

It has already announced that, if the countries send it the texts on time, it can speed up the procedures and vote on them at its plenary session next week.

The European Parliament has to give its consent to the financial framework and approve the agreement on the mechanism that will condition the funds on the rule of law.



Both the European Parliament and the countries must also approve the 2021 annual budget, which was agreed upon last week but had been put on hold because it depends on the multiannual framework.

Although the deadlines are fair, in Brussels it is taken for granted that, if nothing goes wrong, on January 1 of next year there could be budgets in force that allow for continuing to pay cohesion aid, agriculture, research or the program Erasmus, for example.

Recovery Fund

The process to activate the recovery fund is more complex. The decision on the own resources ceiling, in addition to being approved by the 27 States, has to be ratified by several national parliaments and even by regional chambers in some countries.

This process usually takes months and, although the States will try to speed it up, it is impossible for it to be ready before the end of this year even if no parliament objects.

The European Commission anticipates that ratification will end in the second quarter of 2021 and, only thereafter, could it begin issuing debt to finance the fund.

In addition, both the Commission and the Council (the countries) will have to approve the national recovery plans - which governments can present until the end of April - to authorize the aid, so the "central scenario" is for disbursements to begin . from June onwards ", according to community sources.

On the other hand, the States still have to agree with the European Parliament on the regulation that establishes the conditions and operation of the Recovery and Resilience Mechanism, which will channel 672.5 billion euros from the recovery fund.

Spain receives some 140,000 million from the fund, approximately 72,000 million in subsidies (59,168 from this Mechanism) and the rest in loans. The Government has already included some 27,000 million from the recovery fund in the 2021 General Budgets.

[Reklama]