The European Commission has today disbursed €201 million (1.5 billion kr.) to Denmark in pre-financing, equivalent to 13% of the country’s financial allocation under the Recovery and Resilience Facility (RRF). The pre-financing payment will help to kick-start the implementation of the crucial investment and reform measures outlined in Denmark’s recovery and resilience plan.
The Commission will authorise further disbursements based on the implementation of the investments and reforms outlined in Denmark’s recovery and resilience plan. The country is set to receive €1.5 billion (11.5 billion kr.) in total, fully consisting of grants, over the lifetime of its plan.
Today’s disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of €80 billion in long-term funding, to be complemented by short-term EU-Bills, to fund the first planned disbursements to Member States under NextGenerationEU.
Part of NextGenerationEU, the RRF will provide €723.8 billion (in current prices) to support investments and reforms across Member States. The Danish plan is part of the unprecedented EU response to emerge stronger from the COVID-19 crisis, fostering the green and digital transitions and strengthening resilience and cohesion in our societies.
Supporting transformative investments and reform projects
The RRF in Denmark finances investments and reforms that are expected to have a transformative effect on Denmark’s economy and society. Here are some of these projects:
- Securing the green transition: increasing the energy efficiency of buildings, providing premiums for the scrapping of old diesel cars, building new bicycle paths, infrastructure for electric bicycles and support to purchase green ferries.
- Supporting the digital transition: rolling out very high-speed internet access in remaining uncovered rural areas of Denmark, supporting the digital investments of SMEs and further digitisation of the public administration.
- Reinforcing economic and social resilience: initiatives related to fostering digital and R&D investment both in the private and public sectors, extending the availability of telemedicine, and boosting local jobs by supporting local sustainable agricultural production.
Members of the College said:
President Ursula von der Leyen said: “Today’s first disbursement of just over €200 million to Denmark under NextGenerationEU is good news and marks an important step in the implementation of its recovery plan. I want to congratulate Denmark once again for having one of the greenest recovery plans in the EU. The measures will help Denmark consolidate its position as a leader in the green transition. The investments and measures promote energy efficiency, sustainable mobility, green research and innovation.”
Johannes Hahn, Commissioner for Budget and Administration said: “After three very successful bond issuances under NextGenerationEU over the past few weeks, and the first payments for other NGEU programmes, I am glad that we have now also reached the disbursement stage for the RRF. Intense cooperation with Denmark and solid preparation within the Commission allowed us to pay out the funds in record time. This shows that with the resources raised, we will be able to swiftly deliver on the pre-financing needs of all Member States, thus giving them the initial boost in implementing the numerous green and digital projects included in their national plans.”
Paolo Gentiloni, Commissioner for Economy said: “Today’s pre-financing payment of €201 million is the first tranche of €1.5 billion in European support for Denmark under NextGenerationEU. The Danish plan is strongly focused on advancing Denmark’s ambitious green transition, an area in which the country is already a pioneer. This is the right priority for Denmark. The plan also contains numerous measures to further strengthen Denmark’s digital competitiveness. Overall, I am very confident that NextGenerationEU will deliver real benefits to the Danish people.”