European Commission approves € 2.1 billion to Finland and € 969.3 million to Estonia under RRF
The European Commission has approved the Recovery and Resilience Facility (RRF) of Finland and Estonia, approving funds in tune of € 2.1 billion and € 969.3 million respectively, for enabling them to recover from the financial challenges caused by the Coronavirus (COVID-19).
To begin with, Finland would receive 13% of the total funds or € 271 million in pre-financing. As per their proposal submitted to European Commission, Finland will allot 50% of the total funds to measures that support climate objectives. Finland had earlier announced an ambitious target for achieving carbon neutrality by 2035. It includes reforms to phase out the use of coal in energy production, changes to taxation to favour cleaner technologies and a reform of the Waste Act with increased targets for recycling and reuse.
It will devote 27% of its total allocation on measures that support the digital transition. Of this, €50 million would help in improving the high-speed internet connectivity, particularly in rural areas. € 93 million will be used to support the digitalisation of businesses and the public sector and enhance digital skills of the workforce and support the development of key technologies such as artificial intelligence, 6G and microelectronics.
Taking it to twitter, the President of European Commission – Ursula von der Leyen tweeted,
🇫🇮 Green light to Finland’s recovery plan!
— Ursula von der Leyen (@vonderleyen) October 4, 2021
I’m very glad that you chose ambitious investments in energy efficiency, clean mobility and new energy technologies.#NextGenerationEU will support Finland’s efforts to reach carbon neutrality by 2035.
The European Commission observed that Finland’s proposal contains a broad set of reform measures which helps raise the employment rate and strengthens the functioning of the labour market, ranging from the transformation of Public Employment Services to improving and facilitating access to social and healthcare services. The plan includes specific measures to provide integration support for young people and people with partial work-capacity. Finland also plans to strengthen the effective supervision and enforcement of Finland’s anti-money laundering framework.
The other plan which got cleared by the European Commission is of Estonia. The funds will support the implementation of the crucial investment and reform measures outlined in Estonia’s recovery and resilience plan. Initially, the European commission will release 13% of the total funds or € 126 million to Estonia in pre-financing.
As per their proposal, Estonia will allot 42% of the total allocation on measures that support climate objectives. This includes investments in the development of innovative green technologies such as green hydrogen, upgrading green skills, facilitating the green transition for businesses and improving access to green finance for SMEs. It will also work to electrify railways and develop cross-border Rail Baltic project to connect the capital cities of Estonia, Latvia and Lithuania to Poland and the rest of the E.U.
Ursula tweeted,
🇪🇪 Green light to Estonia’s recovery and resilience plan!
— Ursula von der Leyen (@vonderleyen) October 5, 2021
I’m very glad you chose to invest in a stronger health system.#NextGenerationEU will also consolidate your position as a digital leader and prepare you for climate neutrality.
Estonia will also allocate 22% of its funds to support the digital transition. Estonia also aims to modernise public administration and speed up the deployment of very-high-capacity internet networks in rural areas.
The plan also proposes to strengthen the primary health care, increase the size of the healthcare workforce, improve health infrastructure and the e-health system. Providing skills to the unemployed is also on the cards. The plan also includes a measure aiming at establishing a strategic analysis centre within the Financial Intelligence Unit to help prevent and respond to money laundering risks.
