EU to allocate EUR 200 bln recovery fund for green projects

Green Energy

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The countries of the European Union will invest at least EUR 200 billion in green projects when they help the economies recover from the COVID-19 pandemic, European Commission President Ursula von der Leyen said on Friday.

The EU's executive chief has just concluded her first leg of a tour of the 27 member states, endorsing their plans to spend the recovery fund for greener and more digital growth. With 24 national plans submitted and 12 of them approved by the European Commission, von der Leyen said all plans exceed the target of investing at least 20% of the allocated resources in the digital field and 37% in the green transition.

The EU is ready to mobilize EUR 750 billion on behalf of the 27 member states for a historic recovery package, known as NextGenerationEU, and it started raising funds on the financial markets.

"We have raised EUR 20 billion with a maturity of ten years. And it was seven times oversubscribed, which shows the trust and the confide nce of the market in NextGenerationEU and the European Union," von der Leyen declared.

At the heart of NextGenerationEU is the Resilience and Recovery Facility, which will provide member states with up to EUR 312.5 billion in grants and as much as 360 billion in loans to implement reforms. For all approved plans, the Council of the EU has four weeks to adopt the Commission's proposal. 

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