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Questions and Answers on Germany’s Disbursement Request Under NextgenerationEU

How did the Commission assess Germany’s first payment request?

On 15 September 2023, Germany submitted to the Commission a request for the disbursement of €4 billion under the Recovery and Resilience Facility (RRF). The request was based on the achievement of the 28 milestones and eight targets for the first instalment, as outlined in the Council Implementing Decision approving the German plan. This covers green mobility measures with, for instance, financial assistance for citizens to shift to clean electric vehicles and to install charging infrastructure for electric vehicles. Several milestones and targets are linked to progress of investment projects related to research in hydrogen and microelectronics and the creation of additional childcare places. They also take stock of the successful research and development of vaccines against SARS-CoV-2 as well as of the safeguarding of apprenticeships during the Covid-19 pandemic. The payment request covers reforms to promote the digitalisation and the efficiency of public administration including health services as well as the acceleration of the planning and approval procedures in the transport sector.

With their request, the German authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 28 milestones and eight targets. The Commission has thoroughly assessed this information before endorsing the positive preliminary assessment of the payment request.

What are the next steps?

The Commission has now sent the positive preliminary assessment of Germany’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion within a maximum of four weeks. Following the EFC’s opinion, the Commission will adopt the decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of this decision by the Commission, the disbursement to Germany would take place. The amounts disbursed to Germany will be published in the Recovery and Resilience Scoreboard. The Commission has also shared its positive preliminary assessment with the European Parliament.

How do the milestones and targets achieved by Germany so far effectively support the green transition?

The green transition is supported by specific investments, such as financial assistance to help citizens shift to clean electric vehicles and funding support to enable the creation of charging infrastructure for electric vehicles. Through this scheme, Germany has provided financial support for the purchase of more than 240,000 electric vehicles. The investment framework has been adopted to provide support to shift to low-emission buses in passenger transport to reduce climate impact and air pollution.

Germany has also invested in the decarbonisation of industry as well as in research in hydrogen and the rollout of hydrogen-related projects. A pilot project for Carbon Contracts for Difference (CCfD) has been launched to introduce new and cleaner production technologies for energy-intensive industries. The payment request required the adoption of funding guidelines to facilitate the energy-efficient renovation of buildings.

How do the milestones and targets achieved by Germany so far effectively contribute to the digital transition?

Germany has invested in research and development in the field of microelectronics and communication technologies. Projects will be supported in cooperation with several EU Member States within the framework of an “Important Project of Common European Interest” (IPCEI). Germany has also promoted the digitalisation of rail by implementing six pilot projects replacing old signal boxes and level crossing protection systems with new-generation digital security systems. Germany is reforming its public administration by rendering it more efficient. Through the “Onlinezugangsgesetz”, important public services will be made available online to citizens and businesses.

How do the milestones and targets achieved by Germany so far contribute to improving Germany´s economic and social situation, and its resilience?

The German recovery plan provides considerable financial support for the development of vaccines against COVID-19. BioNTech benefited from this financial support as it successfully developed the first COVID-19 vaccine authorised for use in the EU.

Germany has adopted the legal framework for the investment programme that will help create 90,000 childcare places . Germany also counteracted the reduction in the number of apprenticeships due to the COVID-19 pandemic and provided special financial support to SMEs that prolonged or set up apprenticeships during that period.

Germany is making its administration more efficient and innovative: it has adopted a set of laws to accelerate the planning and approval procedures in the transport sector with the aim to increase the capacity of transport routes, as well as facilitating the expansion of climate-friendly modes of transport in order to reach Germany’s climate goals.

Source : Ec.Europe

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