MNI BRIEF: Brussels Green Deal Has EUR350Bln Immediate Funding
Europe's response to the U.S. Inflation Reduction Act can access existing EU funds, the European Commission says.
European Union countries can access EUR250 billion from existing Covid pandemic recovery plans together with EUR100 billion in cohesion funds for a Green Deal Industry Plan, forming a financing bridge towards what may become a European Sovereignty Fund once other money becomes available, European Commission President Ursula von der Leyen said on Wednesday.
The Commission will present its proposal for an ESF before the summer just ahead of the start of EU talks on the next long-term Budget 2028-34, von der Leyen said, as the bloc seeks to respond to USD379 billion U.S. plans to drive green investment under Washington’s Inflation Reduction Act.
While von der Leyen insisted that more common funding would be needed in order to ensure solidarity with those states lacking fiscal space to take advantage of more flexible state aid rules also announced today, many states, including Germany and the frugal countries, are likely to voice strongly opposition at next week’s EU summit. (See MNI: EU Green Deal Seen Tapping Existing Funds, Leveraged)
Under the NextGenerationEU programme 27 national recovery and resilience plans already make available EUR250 billion for green measures. Horizon Europe dedicates EUR40 billion to Green Deal research and innovation, in partnership with industry.