Connect with us

Denmark

NextGenerationEU: European Commission endorses Denmark's €1.5 billion recovery and resilience plan

SHARE:

Published

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

The European Commission has today (17 June) adopted a positive assessment of Denmark's recovery and resilience plan. This is an important step paving the way for the EU to disburse €1.5 billion in grants under the Recovery and Resilience Facility (RRF) over the period 2021-2026. This financing will support the implementation of the crucial investment and reform measures outlined in Denmark's recovery and resilience plan. It will play an important role in enabling Denmark emerge stronger from the COVID-19 pandemic. The RRF – at the heart of NextGenerationEU – will provide up to €672.5 billion (in current prices) to support investments and reforms across the EU. The Danish plan forms part of an unprecedented coordinated EU response to the COVID-19 crisis, to address common European challenges by embracing the green and digital transitions, to strengthen economic and social resilience and the cohesion of the Single Market.

The Commission assessed Denmark's plan based on the criteria set out in the RRF Regulation. The Commission's analysis considered, in particular, whether the investments and reforms set out in Denmark's plan support the green and digital transitions; contribute to effectively addressing challenges identified in the European Semester; and strengthen its growth potential, job creation and economic and social resilience. Securing Denmark's green and digital transitions The Commission's assessment of Denmark's plan finds that it devotes 59% of total expenditure on measures that support climate objectives. These measures include tax reforms, energy efficiency, sustainable transport and agricultural sector initiatives. They all aim at modernising the Danish economy, creating jobs and lowering greenhouse gas emissions as well as strengthening environmental protection and protecting biodiversity.

An Economy that Works for People Executive Vice President Valdis Dombrovskis (pictured) said: “The Danish recovery plan provides a complete road map to an upgraded recovery, with a strong focus on the green transition. Over half of the total funding is dedicated to green objectives, such as clean transport and a green tax reform helping reduce greenhouse gas emissions. We welcome the ambition to future-proof the economy by supporting the roll-out of high speed internet to rural areas, and digitalising the public administration, businesses big and small as well as the healthcare sector. The implementation of the reforms and investments included in the plan will help accelerate Denmark's transition to a next-generation economy.”

Advertisement

The Commission's assessment of Denmark's plan finds that it devotes 25% of total expenditure on the digital transition. Measures to support Denmark's digital transition include the development of a new national digital strategy, increased use of telemedicine, rollout of broadband in less populated parts of the country and fostering digital business investments. Reinforcing Denmark's economic and social resilience The Commission's assessment considers that Denmark's plan includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Denmark by the Council in the European Semester in 2019 and in 2020. It includes measures to frontload private investments, support the twin (green and the digital) transition and foster research and development.

The plan represents a comprehensive and adequately balanced response to Denmark's economic and social situation, thereby contributing appropriately to all six pillars of the RRF Regulation. Supporting flagship investment and reform projects Denmark's plan proposes projects in several European flagship areas. These are specific investment projects which address issues that are common to all member states in areas that create jobs and growth and are needed for the twin transition. For example, Denmark will provide €143 million to foster energy efficiency for households and industry as well as through energy renovations of public buildings. The assessment also finds that none of the measures included in the plan significantly harm the environment, in line with the requirements laid out in the RRF Regulation. The controls systems put in place by Denmark are considered adequate to protect the financialinterests of the Union.

The plan provides sufficient details on how national authorities will prevent, detect and correct instances of conflict of interest, corruption and fraud relating to the use of funds. Commission President Ursula von der Leyen said: “Today, the European Commission has decided to give its green light to Denmark's €1.5bn recovery and resilience plan. Denmark is already a front-runner in the green and digital transitions. In focusing on reforms and investments that will further accelerate the green transition, Denmark is setting a powerful example. Your plan demonstrates that Denmark is looking to the future with ambition and confidence.”

Advertisement

Economy Commissioner Paolo Gentiloni said: “Denmark's recovery and resilience plan will provide European support to advance its ambitious green transition, an area in which the country is already a pioneer. This is the right priority for Denmark. Considering also the plan's numerous measures to advance the digital transition, I am very confident that NextGenerationEU will deliver real benefits to the Danish people over the coming years.”

Next steps

The Commission has today adopted a proposal for a Council Implementing Decision to provide €1.5bn in grants to Denmark under the RRF. The Council will now have, as a rule, four weeks to adopt the Commission's proposal. The Council's approval of the plan would allow for the disbursement of €200m to Denmark in pre-financing. This represents 13% of the total allocated amount for Denmark. The Commission will authorise further disbursements based on the satisfactory fulfilment of the milestones and targets outlined in the Council Implementing Decision, reflecting progress on the implementation of the investments and reforms.

coronavirus

Commission approves €108 million Danish aid measure to support coronavirus-related research and development activities of Bavarian Nordic

Published

on

The European Commission has approved a €108 million Danish aid measure to support coronavirus-related research and development (R&D) activities of Bavarian Nordic, a company active in the vaccine development and manufacturing industry. The scheme was approved under the State Aid Temporary Framework. The public support will take the form of a repayable advance. The aim of the measure is to support the development of a novel coronavirus vaccine, developed by AdaptVac and licensed to Bavarian Nordic. The candidate vaccine is currently undergoing phase II clinical trials.

The aid will support the next development steps, namely the phase III trial to confirm safety and demonstrate efficacy, the experimental development of the necessary production processes, and the works related to the required regulatory authorisations. The Commission found that this aid measure is in line with the conditions set out in the Temporary Framework.

In particular, (i) the aid will cover less than 80% of the relevant R&D costs and will be fully recovered in case of regulatory authorisation; and (ii) any results of the research activities will be made available to third parties in the European Economic Area at non-discriminatory market conditions through non-exclusive licences. The Commission concluded that the measure is necessary, appropriate and proportionate to fight the health crisis, in line with Article 107(3)(c) of the Treaty on the Functioning of the European Union and the conditions set out in the Temporary Framework. On this basis, the Commission approved the aid measure under EU state aid rules. 

Advertisement

Executive Vice President Margrethe Vestager (pictured), in charge of competition policy, said: “This €108 million Danish aid measure will contribute to much needed research and development activities to respond to the coronavirus outbreak. We continue working in close co-operation with member states to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules.”

A full press release is available online.

Advertisement
Continue Reading

CO2 emissions

Commission approves €88.8 million budget increase for Danish scheme supporting reduction of greenhouse gas emissions from farming

Published

on

The European Commission has found that a budget increase of €88.8 million (DKK 660m), made available through the Recovery and Resilience Facility (RRF) for an existing Danish scheme to reduce greenhouse gas emissions from farming, is in line with EU State aid rules. The increased budget to be funded via the RRF, following the Commission's positive assessment of the Danish recovery and resilience plan and its adoption by Council, (SA.63890) is allocated to an existing Danish scheme (SA. 58791) already approved by the Commission on 21 May 2021.

The measure will be in place until 31 December 2026, and had an initial budget of €238m (DKK 1.8 billion). The primary objective of this scheme is to contribute to the Danish target to reduce greenhouse gas emissions by 70% by 2030, compared to 1990 levels. The aid will contribute to removing carbon-rich farmland from production and subsequently to transforming the land into nature areas by restoring its natural hydrology through the disconnection of drains and re-wetting of the land. The existing scheme was assessed based on its compliance with EU guidelines for state aid in the agricultural and forestry sectors and in rural areas, which allow aid to facilitate the development of certain economic activities – in this case the reduction of greenhouse gas emissions from farming. The Commission has now concluded that the additional funding allocated to the existing Danish scheme through the RRF does not change the initial assessment of the scheme, which remains in line with EU State aid rules. All investments and reforms entailing State aid contained in the national recovery plans presented in the context of the RRF must be notified to the Commission for prior approval, unless covered by one of the State aid block-exemption rules, in particular the General Block Exemption Regulation (GBER) and, for the agricultural sector, the Agricultural Block Exemption Regulation (ABER).

The Commission will assess such measures as a matter of priority and has provided guidance and support to member states in the preparatory phases of the national plans, to facilitate the rapid deployment of the RRF. At the same time, the Commission makes sure in its decision that the applicable State aid rules are complied with, in order to preserve the level playing field in the Single Market and ensure that the RRF funds are used in a way that minimises competition distortions and do not crowd out private investment.

Advertisement

The non-confidential version of the decision will be made available under the case number SA.63890 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

Advertisement
Continue Reading

Denmark

NextGenerationEU: President von der Leyen heads to Greece, Denmark and Luxembourg to present Commission assessment of national recovery plans

Published

on

President Ursula von der Leyen will today (17 June) visit Greece and Denmark, and tomorrow Luxembourg. She will personally hand over the result of the Commission's assessment and Recommendation to the Council on the approval of the national recovery and resilience plans in the context of NextGenerationEU, Europe's Recovery Plan. The President will be in Athens tomorrow morning, where she will meet Prime Minister Kyriakos Mitsotakis. President von der Leyen will then travel to Copenhagen. There she will meet Prime Minister Mette Frederiksen and she will be joined by Commission Executive Vice-President Margrethe Vestager. On Friday 18 June, the President will be in Luxembourg. In the morning, she will meet His Royal Highness The Grand-Duke of Luxembourg and later she will meet the Prime Minister, Xavier Bettel. In all countries, President von der Leyen will visit projects that will be funded thanks to the Recovery and Resilience Facility, focused mainly on research and the green and digital transition.

Advertisement

Continue Reading
Advertisement
Advertisement
Advertisement

Trending