Germany receives 4 billion Euros from the European Recovery and Resilience Fund
The European Commission announced Thursday that Germany received, for the first time, a payment of 4 billion Euros ($4.4 billion) from the European “Recovery and Resilience Fund” that was established during the Covid pandemic crisis.
Berlin had requested the payment from the European Union fund in mid-September.
Germany will be able to withdraw a total of 28 billion Euros from the “Recovery and Resilience Fund,” according to the European Commission’s calculations.
The funds will be used to expand electric and hydrogen mobility projects, including the digitalization of railways and public administration, the development of vaccines, and the promotion of child care and education.
The financing fund was established in 2021 to deal with the economic damage caused by the coronavirus pandemic.
According to the latest figures, the Fund has 338 billion Euros in grants and 385 billion Euros in loans.
The money will be financed through debt, which will be jointly repaid by 2058.
In order to receive aid, member states must submit a plan that includes concrete investment and reform projects.
The funds are performance-based and are only paid after milestones and targets related to the implementation of planned reforms and investments are achieved.
