European Commission endorses Netherlands' €4.7 bn recovery plan

“It (the plan) will play a crucial role in enabling the Netherlands to emerge stronger from the COVID-19 pandemic,” the European Commission said on its website.

The RRF is the key instrument at the heart of NextGenerationEU, which will provide up to €800 billion (in current prices) to support investments and reforms across the EU. The Netherlands’ plan forms part of an unprecedented, coordinated EU response to the COVID-19 crisis, to address common European challenges by embracing the green and digital transitions, to strengthen economic and social resilience and the cohesion of the Single Market.

In its assessment, the Commission found that the Netherlands’ plan devotes 48 per cent of its total allocation on measures that support climate objectives. The Dutch plan includes investments that are expected to make a significant contribution to the decarbonisation and energy transition.

The plan includes investments and reforms to speed up the deployment of renewable energy sources, investments in sustainable mobility and nature restoration. Several measures in this area also contribute to the REPowerEU objectives to rapidly reduce dependence on Russian fossil fuels and fast forward the green transition, as well as to the relevant 2022 country-specific recommendation on energy. These include investments in offshore wind and energy efficiency in housing, as well as a new Energy Law, which is expected to facilitate investments in the electricity grid and to allow consumers to sell self-produced renewable energy.

Netherlands’ plan also devotes 26 per cent of its total allocation on measures that support the digital transition. This includes investments in quantum technology, artificial intelligence, digital education and digital government. The plan also covers information management reforms to create an open and transparent public administration.

The plan puts forward a package of targeted reforms that aims at tackling shortcomings of the pension system and strengthening the labour market. This includes increasing social protection for the self-employed.

Commenting on the Netherlands’ €4.7 billion recovery and resilience plan, European Commission president Ursula von der Leyen said: “This plan will further strengthen the Dutch economy, making it greener, more digital, and more resilient. We have endorsed this plan because it is ambitious, far-sighted and will help build a better future for the Dutch people. It is also a strong contribution to our REPowerEU plan as it includes important projects to become less dependent on Russian fossil fuels.”

The European Council will now have, as a rule, four weeks to adopt the Commission’s proposal. Following an approval by Council of the plan, the Commission will authorise disbursements to the Netherlands based on the satisfactory fulfilment of the milestones and targets outlined in the recovery and resilience plan, reflecting progress on the implementation of the investments and reforms.

ALCHEMPro News Desk (RKS)