Belgium finally receives money from the European Corona Recovery Fund

Belgium is entitled to 5 billion euros in subsidies and 264 million euros in loans from the recovery fund – officially the Recovery and Resilience Facility. The fund is set up to help EU member states recover economically from the coronavirus pandemic by encouraging investments and reforms, particularly in the green and digital transition.

After deducting the pre-financing already received, Belgium believed it was entitled to a first payment from the fund amounting to 658 million euros. This is not a blank check, but an amount corresponding to twenty predetermined milestones and targets, such as the rollout of a 5G network, the greening of company cars, and facilitating charging infrastructure for electric vehicles.

The Commission, however, considers that one milestone has not been achieved. It concerns a reform that should improve the financial and social sustainability of the pension system, including keeping older people in work longer and guaranteeing a decent minimum pension.

Because this milestone has not been reached, the Commission has decided to suspend the payment of the corresponding amount. Taking into account the pre-financing that Belgium has already received, this is a net amount of approximately 26 million euros that is put ‘on hold’. To release the blocked amount, Belgium must implement a pension reform that meets the agreed conditions within six months.