MNI BRIEF: German Court To Complicate, Not Derail EU Fund

The German Constitutional Court could potentially "complicate" but not derail ratification of legislation to allow the European Union's EUR750 billion Recovery and Resilience Fund to raise money, with member states set to conclude the process on time by the end of June, an EU source said.

The GCC blocked Germany's ratification process in March, but the official, speaking ahead of Friday's ECOFIN meeting of EU finance ministers, said German authorities should be able to resolve the impasse. This should allow the Fund to start borrowing on schedule by July.

National recovery plans, a requirement to access the EU funds, should be submitted to the Commission by France, Greece, Portugal and Spain by as early as next week, the official said. But the Netherlands – where no new government has yet been formed following recent general elections – and Finland are not expected to submit plans before the end-April 'soft deadline'.

Some countries are pushing the Commission to shorten the two-month period for evaluation of the plans, the official said. It is expected a further month will be required for EU finance ministers to approve them.