Emmanuel Macron receives Ursula von der Leyen to give the green light to France’s recovery plan

Published on : 06/23/2021 – 07:54

The President of the European Commission Ursula von der Leyen is traveling to Paris on Wednesday 23 June to give the green light from Brussels to the French recovery plan, part of which will be financed by European subsidies.

On the eve of the European summit on Thursday and Friday, Ursula von der Leyen is expected in the afternoon at the Elysee Palace where she will make a joint statement with the French head of state before meeting with him.

Of the 100 billion euros provided for in the French government’s recovery plan, Paris should have 40 billion financed by Brussels.

France intends to spend more than half of this amount in the ecological transition, with in particular 5.8 billion for energy renovation, 6.5 billion for transport and green mobility infrastructure, or 5.1 billion for development. green energies and technologies.

Around 10 billion will be devoted to the digitization of the French economy, while the rest of this unprecedented European subsidy must be allocated to expenditure in favor of research, the health system and territorial cohesion.

A plan in accordance with the requirements of Brussels

France is thus in the nails of the criteria set by Brussels, which allocated at least 37% of expenditure in favor of the ecological transition and 20% for the digital transition.

Beyond investments, Member States had to complement their national plan with a component of structural reforms, called for by the EU.

In its plan, the French government has taken over a large part of the reforms adopted since 2017: the housing policy, the climate law or the law simplifying public action and business life.

The document sent to Brussels also recalls the government’s determination “to carry out an ambitious reform of the pension system”, without however giving a precise timetable.

First green light given to Italy

Ursula von der Leyen began a tour of Spain and Portugal last week to announce the Commission’s approval of national plans, co-financed by the 750 billion euro mega-recovery plan, in the countries concerned. On Tuesday, the green light was given to Italy, which will receive 68.9 billion euros in direct subsidies from Brussels.

The EU started borrowing in financial markets in mid-June to finance this plan to overcome the economic consequences of the pandemic. The common use of borrowing will allow the disbursement of 672 billion euros in grants and loans to member countries.

EU countries began to submit national investment plans associated with structural reforms in Brussels at the end of April, in order to secure their share of this funding.

Spain, with 70 billion in direct subsidies, as well as Italy should be the main beneficiaries, ahead of France.

Formally, the final green light for the various national plans will be given by the Council, which represents the Member States, whose first positive opinions are expected on July 13.

With AFP