Green light for the German development and resilience plan
The implementation of the NextGenerationEU development instrument is progressing.
UM – 07/2021
On July 13, 2021, the EC gave the go-ahead
for twelve development
and resilience plans, which include the German
development and resilience plan (only in German language). This justifies the 25.6 billion euros that
Germany received following the coronavirus pandemic. The aim is to attract
investment in projects and reforms to force member states to change over to
more sustainable, social and digital economies. So far, 25 member states have
submitted their plans and 16 have already been approved by the EC.
Payment will follow implementation
In total, the European development and
resilience facility totals 672.5 billion euros. It forms the core of the
NextGenerationEU development instrument that totals 750 billion euros. The
money will be raised on the capital markets through EU bonds. The non-repayable
grants will amount to 312.5 billion euros, with the remainder being granted in
the form of loans. As of mid-July, the EU has already generated 45 billion
euros through three bond
issues. Germany can now conclude a grant and loan agreement with the EC to
pre-finance its projects that amount to 2.3 billion euros. The payment of
further funds will depend on the agreed measures being implemented.
Focus: social participation
The German development and resilience plan
focuses on six areas. One area of focus is "strengthening social
participation". A core measure here is the so-called "social
guarantee", according to which social security contributions must never
exceed a total of 40 per cent in 2021 in order to relieve the burden on the labour
factor. Financial resources will also be made available from the EU for
developing the childcare infrastructure. 34.5 million euros have been earmarked
for developing a digital pension overview that will integrate pension products
from all three pillars of old-age provision. A total of 4.5 per cent of
European funding now goes to the social sector.
Focus: pandemic-resilient healthcare
Another area of focus is
"strengthening a pandemic-resilient healthcare system". This takes up
16.3 per cent of the available funds, almost as much as the largest block in
the German development plan, i.e. promoting climate-friendly mobility (19.4 per
cent). On the one hand, the health priority includes human, digital and
technical strengthening of the public health service that amounts to 813
million euros. On the other, a future programme for hospitals has been launched
to promote investment in modern emergency capacities and the digital
infrastructures in German hospitals. As this totals three billion euros, it is
the largest single measure in the German development plan alongside digitising
the administration processes. 750 million euros have also been earmarked for
supporting research and development of vaccines against SARS-CoV-2. This means
that the German development and resilience plan will also contribute to the
urgent battle against the coronavirus pandemic.