LISBON, June 17 (NNN-AGENCIES) — European Commission chief Ursula von der Leyen visits Lisbon and Madrid where she begins approving recovery plans submitted by nations seeking funding from the bloc’s coronavirus Covid-19 recovery fund.
“This is a historic achievement,” von der Leyen told the European Parliament last week in announcing the imminent activation of the landmark 750-billion-euro ($910-billion) recovery plan which was drawn up nearly a year ago.
The choice to start in Portugal and Spain is symbolic.
Portugal, which currently holds the EU’s six-month rotating presidency, has made the rapid adoption of these recovery plans a priority following their recommendation by the Commission.
And the government of Socialist Prime Minister Antonio Costa set a good precedent by being the first country to submit its own plan in April.
Spain is also a significant choice in that it will be the second-largest beneficiary of the rescue fund after Italy, with Madrid set to receive 140 billion euros ($170 billion), half of which will take the form of direct grants and loans.
Spain was particularly hard hit when the pandemic first erupted in early 2020, while Portugal suffered a major surge in cases at the start of this year.
With both countries hugely dependent on tourism, their economies have been significantly affected.
Since the eurozone debt crisis which began in 2011, Lisbon and Madrid have often been in the firing line with Europe’s more “frugal” members frustrated at having to fork out money to subsidise spending in what they have seen as the somewhat less virtuous south.
In Lisbon, von der Leyen met Costa at a science exhibition centre. Portugal is to receive 16 billion euros in funding.
She then flies to Madrid to meet Socialist Prime Minister Pedro Sanchez at the headquarters of the national electricity board with Spain to drive the bulk of its funding into the green transition.
On Thursday, von der Leyen heads to Greece and Denmark, and then on to Luxembourg the next day on a tour that will take her to most member states.
Since the end of April, 23 governments have submitted investment and reform plans to Brussels for approval. The Commission has two months from the date of submission to give its opinion after which the European Council must give its approval within a month. — NNN-AGENCIES
