The European Commission has today disbursed €12.1 million to Luxembourg in pre-financing, equivalent to 13% of the country's financial allocation. Luxembourg is one of the first countries receiving a pre-financing payment under the Recovery and Resilience Facility (RRF). It will help to kick-start the implementation of the crucial investment and reform measures outlined in Luxembourg's recovery and resilience plan.
The Commission will authorise further disbursements based on the implementation of the investments and reforms outlined in Luxembourg's recovery and resilience plan. The country is set to receive €93.4 million in total, fully consisting of grants, over the lifetime of its plan.
Today's disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of €80 billion in long-term funding, to be complemented by short-term EU-Bills, to fund the first planned disbursements to Member States under NextGenerationEU.
Part of NextGenerationEU, the RRF will provide €723.8 billion (in current prices) to support investments and reforms across Member States. The Luxembourg plan is part of the unprecedented EU response to emerge stronger from the COVID-19 crisis, fostering the green and digital transitions and strengthening resilience and cohesion in our societies.
Supporting transformative investments and reform projects
The RRF in Luxembourg finances investments and reforms that are expected to have a deeply transformative effect on Luxembourg's economy and society. Here are some of these projects:
-Securing the green transition: The RRF supports with €30.5 million sustainable transport in Luxembourg through a support scheme to extend the network of charging points for electric vehicles across the country.
-Supporting the digital transition: The RRF helps with €10 million to strengthen Luxembourg's cyber security resilience, co-financing Luxembourg's ultra-secure communication infrastructure “LuxQCI Lab”, based on quantum technology, as part of a European project.
-Reinforcing economic and social resilience: setting up a “Housing Pact 2.0” with municipalities to reform funding of new or renovated affordable and sustainable housing.
Members of the College said
President Ursula von der Leyen said: “With this very first disbursement, we are truly making NextGenerationEU real in Luxembourg. A month and a half ago, I was delighted to give the Commission's green light to Luxembourg's recovery and resilience plan, one of the greenest, most environmentally-friendly we have received, with strong investments in clean energy, renewables and sustainable mobility. The EU is giving Luxembourg a boost to achieve the green transition.”
Johannes Hahn, Commissioner for Budget and Administration, said: “After three very successful bond issuances under NextGenerationEU over the past few weeks, and the first payments for other NGEU programmes, I am glad that we have now also reached the disbursement stage for the RRF. Intense cooperation with Luxembourg and solid preparation within the Commission allowed us to pay out the funds in record time. This shows that with the resources raised, we will be able to swiftly deliver on the pre-financing needs of all Member States, thus giving them the initial boost in implementing the numerous green and digital projects included in their national plans.”
Paolo Gentiloni, Commissioner for Economy, said: “The first funds we disbursed today will help Luxembourg emerge stronger from the crisis. One third of the plan is dedicated to clean mobility. The digitalisation of the public administration will benefit citizens and businesses alike. The plan also invests in the improvement of workers' digital skills. The ambitious renewables project in Neischmelz will provide residents of the new housing district with clean electricity and heating.”
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