Latest news with #RecoveryFund
Russia Today
05-06-2025
- Business
- Russia Today
EU allows members to spend Covid cash on arming Kiev
The European Commission has allowed member states to redirect funds they have struggled to claim from the joint pandemic recovery pot for national development projects into bloc-wide security and defense initiatives – with significantly less oversight and fewer bureaucratic hurdles. The EU established the €650 billion ($740 billion) Recovery and Resilience Facility (RRF) in 2021 to support green energy and growth-oriented projects in the wake of the Covid-19 pandemic. However, to receive the funds, member states must prove their projects meet specific benchmarks. Roughly half of the fund remains unspent, with the deadline to 'provide evidence' looming in September 2026, according to the Commission's communique on Wednesday. In order to 'easily secure' their share of the remaining funds before time runs out, countries can now instead channel RRF-backed money into various security programs, such as the European Defence Industry Programme (EDIP) or satellite communications initiatives, Politico reported on Wednesday. 'These alternatives could help the Recovery Facility to deliver additional important benefits from common European priorities, including in the areas of security and defense,' EU Trade Commissioner Valdis Dombrovskis said. The Commission's memo claimed that 'specific projects would subsequently be selected and supported under EDIP, for the benefit of the Member State concerned, with implementation occurring over a longer time horizon.' Kiev is specifically listed as one of the main beneficiaries of EDIP, an initiative designed to subsidize the bloc's defense industry and enhance 'joint procurement with and for Ukraine,' according to an EC factsheet. Originally a €1.5 billion program, EDIP also aims to 'use windfall profits from frozen Russian assets to support Ukraine.' Brussels has spent almost €50 billion supporting Kiev through various EU programs since the escalation of the Ukraine conflict in 2022, in addition to billions contributed by individual member states, according to data from Germany's Kiel Institute. In March, European Commission President Ursula von der Leyen presented a plan to mobilize up to €800 billion ($875 billion) in debt and tax incentives for the military-industrial complex to 'rearm' the bloc against the perceived 'Russian threat.' Last month, the Council of the European Union endorsed a €150 billion ($170 billion) militarization plan, dubbed SAFE (Security Action for Europe), to raise funds for military purposes without direct approval from the European Parliament. Russia has repeatedly dismissed claims it plans to attack Western Europe as 'nonsense,' accusing the West of using scare tactics to justify diverting public funds toward military spending. Moscow has warned that foreign involvement—including arms deliveries—will obstruct peace efforts and ultimately fail to stop Russia from achieving its military objectives. The Kremlin has also criticized the EU's militarization drive, warning it risks triggering a broader conflict in Europe.
LBCI
19-05-2025
- Politics
- LBCI
Lebanese President meets Arab League chief in Cairo, reviews Baghdad Summit outcomes
Lebanese President Joseph Aoun visited the Arab League headquarters in Cairo, where Secretary-General Ahmed Aboul Gheit received him. The meeting focused on the outcomes of the recent Baghdad Summit, with particular emphasis on the decision to establish a regional Recovery Fund. Aoun's visit to the League is part of his broader diplomatic engagements in Egypt, including discussions with Egyptian President Abdel Fattah El-Sisi on regional cooperation, Lebanon's internal challenges, and broader Arab solidarity.
Reuters
06-05-2025
- Business
- Reuters
EU recovery fund not fully transparent or accountable, auditors say
BRUSSELS, May 6 (Reuters) - The European Union's 650 billion euro ($736.58 billion) facility designed to promote recovery after the pandemic is not fully transparent and the money it disburses is not linked to project costs, the European Court of Auditors said on Tuesday. The ECA, the European Union's supreme audit institution, has been reviewing the implementation of the Recovery and Resilience Facility set up in 2021 using jointly borrowed money to pay for reforms and investments for all EU countries until 2026. "The EU's COVID recovery fund ... suffers from several weaknesses in terms of performance, accountability and transparency," the ECA said in its review. "Although the RRF has played a crucial role in the EU's post-pandemic recovery, information on results is scarce, and there is no information on actual costs. As a result, it is not clear what citizens actually get for their money." The facility was created to make the EU economy greener, more digitalised and resilient to shocks. Payouts are made twice a year when governments reach reform and investment milestones and targets agreed with the Commission. The ECA said the executive European Commission can make full payments from the facility despite any public procurement irregularities, as long as the milestones and targets are reached. Because of the way these markers have been set, some EU countries receive considerable funds before they complete the projects, the ECA said. While 42% of the funds have been disbursed, only 28% of the milestones and targets have been fulfilled by the end of 2024, the ECA said, with the rest due to be attained by August 2026. "This poses a risk to the EU's financial interests, as member states could end up keeping the money without completing the projects," the ECA said. Many EU policy makers have said chances of any new joint borrowing by the 27-nation EU would depend on how successful the recovery fund is in helping the EU economy. "EU policymakers must draw lessons from the RRF, and not allow any future similar instrument without having information on actual costs, final recipients and a clear answer to the question of what the citizens actually get for their money," said ECA's Ivana Maletic, a co-author of the review. "For future performance-based budgets, funding must be better linked to results and clearly defined rules, otherwise such a system should not be used," Jorg Kristijan Petrovic, the other co-author, said.
Yahoo
21-04-2025
- Business
- Yahoo
Applications open for Governor's Response and Recovery Fund for Helene recovery
NASHVILLE, Tenn. (WJHL) — Applications are open for the Tennessee Governor's Response and Recovery Fund for financial assistance related to Hurricane Helene recovery. Applications are available to local governments, non-profits, businesses, farmers and foresters in Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi and Washington counties. Jay Leno, Billy Bob Thornton and the Boxmasters coming to Bristol Casino The Governor's Response and Recovery Fund was established after Hurricane Helene, but will be used for future disasters too. 'Tropical Storm Helene was an unprecedented disaster for our state, and the Governor's Response and Recovery Fund is part of a comprehensive plan to provide flexible financial resources for current and future emergencies,' Gov. Bill Lee said in a release. 'I thank the General Assembly for their partnership and acting swiftly to provide necessary relief for Tennesseans.' Applications must be submitted by May 31 and can be found on the Tennessee Emergency Management Agency's website. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
12-02-2025
- Business
- Yahoo
The 'unjust' £250m problem set to rock Stockport
Stockport council has a mammoth task ahead. Town hall bosses need to save up to £60m over the next few years as costs to fund local services continue to grow. To balance the books, new charges are on the table for garden waste collections, car parks, and council tax, as part of the borough's budget plans. But a major new problem has reared its head which could slap the council with a near £250m bill, according to its finance cabinet member. READ MORE: Missing man in Tenerife has been 'found needing medical care' after family flies out to search, says sister READ MORE: Firefighters urge people to shut doors and windows in Stockport blaze Employer national insurance contributions are set to increase nationally, and Stockport council said it was promised extra cash to help cover the cost as part of its share of the Local Government Finance Settlement - a pot of cash given to town halls every year. But at Stockport council's latest cabinet meeting on February 4, Coun Jilly Julian said the borough has been given no extra money for the national insurance increases - leaving the council with a massive black hole to plug. She said: "We have been told that we will be compensated for the direct impact for the council of employer national insurance contributions increasing. '[But the latest finance settlement shows] we won't be directly compensated for the entirety of the impact of that additional cost. 'We know that there's going to be a shortfall of £233m from the funding that's been put forward in the final settlement, that's almost a quarter of a million pound hole in what we believed from the provisional settlement would be available to the council." The Local Government Association (LGA) has also warned about the problem. In November, the LGA's social care spokesperson, Coun David Fothergill, said the increases to employer national insurance contributions are "likely to add significant costs for councils and the wider sector," and risks "putting vital services at significant risk of collapse." Stockport council also missed out on millions of pounds of extra funding through the government's Recovery Fund - one of the only councils in the country to do so. But it did receive some extra cash from the government, with a 5.89 percent increase in the council's core spending power in 2025/26. On February 27, councillors in Stockport will vote on whether to approve the proposals to balance the books, which includes the proposed charges for garden waste and car parks. But in the short-term, pressure is growing on the council's ability to keep funding local service. Coun Julian said that the situation feels "unjust," but added that the council will still set a balanced budget this year. "The bones of it is, pressures exceed funding, it's that simple," she said. "For the 16th consecutive year there's insufficient funding with which we need to protect our most vulnerable residents, deliver vital social care services, and provide the universal services that all of our residents rely on." The Ministry of Housing, Communities and Local Government was contacted for comment.
