CEE Special | EU funds to support the growth in CEE
CEE Economies Special Report , 28. Aug
CEE should utilize Next Generation budget and finance longer-term reform and investments. In particular, it may be a unique chance to advance digital network (high-speed broadband) and skills as well as e-government services. We see Next Generation EU funds as growth-positive factor in medium and long-term mainly.
Over next couple of years CEE will still see a flow of EU payments within the 2014-2020 budgeting period (EUR 100bn mostly allocated to projects already). Next, more than EUR 60bn in grants within Next Generation EU and almost EUR 90bn in loans will be available. According to the European Commission, most of the funding will be provided through grants, with possible top-ups via loans. The first payments for grants are expected in the second half of 2021 at the earliest, with most of them arriving in 2022-23 (but no later than 2026). Moreover, the grants and loans will be disbursed in instalments upon the completion of milestones and targets.
The reforms and investments do not need to focus on pandemic-related issues, but can be made in a broad scope of areas, such as competitiveness, productivity, environmental sustainability, education and skills, health, employment, and economic, social and territorial cohesion. In other words, the Recovery and Resilience Facility will support longer-term reform and investments with focus on green and digital transition.
Over next couple of years CEE will still see a flow of EU payments within the 2014-2020 budgeting period (EUR 100bn mostly allocated to projects already). Next, more than EUR 60bn in grants within Next Generation EU and almost EUR 90bn in loans will be available. According to the European Commission, most of the funding will be provided through grants, with possible top-ups via loans. The first payments for grants are expected in the second half of 2021 at the earliest, with most of them arriving in 2022-23 (but no later than 2026). Moreover, the grants and loans will be disbursed in instalments upon the completion of milestones and targets.
The reforms and investments do not need to focus on pandemic-related issues, but can be made in a broad scope of areas, such as competitiveness, productivity, environmental sustainability, education and skills, health, employment, and economic, social and territorial cohesion. In other words, the Recovery and Resilience Facility will support longer-term reform and investments with focus on green and digital transition.