How did the Commission assess Denmark's first payment request?
On 16 December 2022, Denmark submitted to the Commission a request for the disbursement of €301 million under the Recovery and Resilience Facility (RRF). The request was based on the achievement of the 23 milestones and two targets for the first instalment, as outlined in the Council Implementing Decision approving the plan. They cover reforms that are part of the green tax reform and include measures supporting the green transition of Danish businesses in line with the National Energy and Climate Plan. Other initiatives give incentives to Danish households to reduce CO2 emissions through a reduced registration tax for zero and low emission cars and a reduced electricity tax on charging electric vehicles. Milestones and targets also concern major investments in the fields of health, environment-friendly agriculture, energy efficiency and carbon capture and storage technologies, sustainable mobility, and research and development measures supporting the green transition.
With their request, the Danish authorities provided detailed and comprehensive evidence demonstrating the fulfilment of all the milestones and targets. The Commission has thoroughly assessed this information before endorsing the positive preliminary assessment of the payment request.
What are the next steps?
The Commission has now sent the positive preliminary assessment of Denmark's fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC's opinion, to be delivered within maximum four weeks, should be taken into account in the Commission's assessment. The Commission will adopt the decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of this decision by the Commission, the disbursement to Denmark would take place. The amounts disbursed to the Member States will be published in the Recovery and Resilience Scoreboard. The Commission has also shared its positive preliminary assessment with the European Parliament.
How do the milestones and targets achieved by Denmark so far effectively support the green transition?
The green transition is supported by a broad green tax reform that encourages the green and digital transition of Danish businesses in line with the National Energy and Climate Plan and recently expanded national targets. Denmark's first instalment includes a set of first milestones linked to two investment measures and one reform under the green tax reform. Under the first investment measure, companies can receive a tax benefit for undertaking investments contributing to the green and digital transition due to their reduced CO2 emissions. The second investment measure is an incentive to increase companies´ investments in the green transition through a higher ceiling for investments benefitting from immediate full tax depreciation, rather than depreciation over four years, as per the normal rules. In total 59% of the spending under the Danish plan supports the green transition.
How do the milestones and targets achieved by Denmark so far effectively contribute to the digital transition?
The Danish plan supports a broad Digital Strategy designed to promote a digital transformation of all sectors of society. The milestones and targets relating to the Digital Strategy are covered in future instalments and do not feature in the first payment request.
How do the milestones and targets achieved by Denmark so far contribute to improving Denmark´s economic and social situation, and its resilience?
The Danish plan supports a range of measures to improve the resilience of the health sector, including measures to ensure stocks of critical drugs. Measures to ensure the sufficient supply of medical products in crisis situations have also been implemented. It also supports the rollout of digital measures to promote telemedicine.
Does the achievement of these first milestones and targets contribute to an effective implementation of the Plan?
The milestones and targets fulfilled constitute significant steps in the implementation of Denmark´s recovery and resilience plan, as they make up nearly one third of all the milestones and targets of the plan. They include important measures, such as the green tax reform that is a key step in transforming the Danish economy towards a more sustainable economy.
For More Information
Press release on Denmark's disbursement request for €301 million under NextGenerationEU
Press release on €201 million in pre-financing to Denmark
Question and Answers on Denmark's recovery and resilience plan
Factsheet on Denmark's recovery and resilience plan
Annex to the Proposal for a Council Implementing Decision
Recovery and Resilience Facility
Recovery and Resilience Scoreboard
Recovery and Resilience Facility Regulation
Question and Answers on the Recovery and Resilience Facility