The Netherlands receives 1.3 billion euros from Brussels coronavirus recovery fund

The Netherlands will soon receive the first payment of 1.3 billion euros from the European Recovery and Resilience Fund, which Brussels set up to help Member States with the economic recovery after the coronavirus pandemic. Finance Minister Eelco Heinen announced this to the House of Representatives.

Brussels has approved the disbursement of the first of five tranches. Heinen assumes that he will submit a second payment request for 1.2 billion euros by the end of this year. A total of 5.4 billion euros is available for the Netherlands.

However, to receive the full amount, the agreements made with the European Commission must be fulfilled. A plan sets out exactly which investments the money from the fund will be used for and which reforms will be implemented in return. The money will be spent on digitalization, affordable housing, education, and healthcare, among other things.

The EU fund came into force in February 2021 and is intended to finance reforms and investments in EU member states between the start of the pandemic in February 2020 and December 2026. According to the European Commission, member states can receive funding up to a previously agreed-upon maximum amount.

However, the money is linked to certain investments. For example, the EU member states must allocate at least 37% of the budget to climate protection measures and 20% to digital measures. The Recovery and Resilience Fund is performance-based. This means that the European Commission will only disburse funds if a country has reached the agreed milestones and targets for completing the reforms and investments in its plan.