The Recovery Fund proposed by the 4 Nordic countries, only loans – Economy


A “temporary, one-off” emergency fund limited to two years, to support “the economic recovery and resilience of the health sectors” with an approach based on “loans on favorable terms” without “any debt mutualisation” and in return of a “strong commitment to national reforms” by the beneficiaries: it is the Recovery Fund proposed by Austria, the Netherlands, Denmark and Sweden in a non-paper sent to the EU capitals and Brussels.

In the document presented by Austria, the Netherlands, Sweden and Denmark – which ANSA has viewed – the so-called ‘frugal 4’ clarify that loans can be granted “on favorable terms to the countries that need it most”, “limiting” however ” the risk for all Member States “. Therefore, they write, “what we cannot agree on is the creation of any instrument or measure that leads to mutualisation of the debt or to significant increases in the EU budget”. The Emergency Fund, reads in the non-paper, will have to be linked to a “modernized” EU budget and will act as a “supplement to the unprecedented 540 billion euro package already agreed by the European Council” with Sure, Bei and Mes. The expenses related to Covid-19 can be covered by the Member States through “savings in the EU multiannual financial framework, by reprogramming” the resources “in the areas that are least likely to contribute to the” economic recovery “. The four therefore insist on the need for “reforms” that allow Member States to be “better prepared for the next crisis”. And they set other stakes for the Emergency Fund, underlining, among other things, that it must be a one-off instrument with a maximum duration of two years. The funds, it is still underlined in the document, must be used to develop “research and innovation”, guarantee “greater resilience to the health sector” and implement the “green transition” and “digital” at the center also of the EU Green Deal. To protect loans from possible fraud, the 4 northern countries are calling for “strong involvement of the European Court of Auditors, the EU Anti-Fraud Office (Olaf) and the European Public Prosecutor’s Office (Eppo)”. “Our goal – concludes the document – is to provide temporary and targeted financing through the EU multi-year budget as well as to offer loans at favorable conditions to those who have been hit hardest by the crisis”.


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