Edition: International | Greek
MENU

Home » Europe

EU officials risk approval of recovery fund by Finland

EU Commissioners may have placed the bloc’s €750 billion recovery fund on shaky ground after telling MEPs the arrangement could become a regular and even permanent mechanism to boost growth

By: EBR - Posted: Wednesday, May 12, 2021

"Vice President Valdis Dombrovskis and European Economic Commissioner Paolo Gentiloni told the European Parliament’s economic and monetary affairs committee on Monday that the recovery fund would not be a one-off measure."
"Vice President Valdis Dombrovskis and European Economic Commissioner Paolo Gentiloni told the European Parliament’s economic and monetary affairs committee on Monday that the recovery fund would not be a one-off measure."

by Pekka Vanttinen

EU Commissioners may have placed the bloc’s €750 billion recovery fund on shaky ground after telling MEPs the arrangement could become a regular and even permanent mechanism to boost growth. Fiscally conservative Finland has previously presented the fund, which requires unanimous approval from all 27 EU countries, as a temporary measure with no future joint borrowing.

For the Finnish government and supporters of the fund, the timing could not have been worse, coming days ahead of a vote by Finnish lawmakers on whether to approve the fund on Wednesday (12 May).

The fund was initially presented to parliament and to the Finnish public with assurances that there will be no joint borrowing in the future and the arrangement would be temporary.

But European Commission Vice President Valdis Dombrovskis and European Economic Commissioner Paolo Gentiloni told the European Parliament’s economic and monetary affairs committee on Monday that the recovery fund would not be a one-off measure, Reuters reported.

“The more successful we are in the implementation of this facility the more scope there will be for discussions on having a permanent instrument, probably of a similar nature,” Dombrovskis said.

Finland is the only EU country where a two-thirds majority is required to approve the fund. It now appears uncertain whether a majority will be reached.

Finnish Finance Minister Matti Vanhanen said it was not up to the EU Commissioners to decide on the future use of the arrangement in question. Dombrovskis then tweeted in Finnish that for the Commission it is absolutely clear that the fund is an extraordinary, one-off measure.

Finnish MEP Mauri Pekkarinen (Renew Europe group) replied to Dombrovskis: “A mistake has already occurred. Commissioners’ comments [are being] considered!”.

“True to form the Commission starts talk of permanency before it has proven it can actually deliver the promised next generation reform agenda. The omens aren’t good. No real reforms is no future for next generation and the Commission knows this,” an EU diplomat told EURACTIV.com.

*first published in: www.euractiv.com

READ ALSO

EU Actually

The remarkable Danish Social-Democrats asylum policy

N. Peter KramerBy: N. Peter Kramer

Thursday last week, the Folketing (the Danish Parliament) passed a law that makes possible to send asylum seekers to a country outside the European Union, where their application will be assessed

View 01-02/2021 2021 Digital edition

Magazine

Current Issue

01-02/2021 2021

View past issues
Subscribe
Advertise
Digital edition

Europe

EU’s building renovation wave hits administrative snag

EU’s building renovation wave hits administrative snag

Differing views within the European Commission on how the EU’s unprecedented recovery fund can be spent, and a rush to translate national spending plans from their original language, risk slowing down the EU’s building renovation wave, experts say

Business

The New Normal for Innovation

The New Normal for Innovation

Once a reliable route to competitive advantage, innovation has become a survival skill

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2021. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron