RT.com
05 Jun 2025, 06:27 GMT+10
Brussels has loosened conditions for using the remaining 335 billion in the pandemic recovery fund
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'scommuniqueon 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 ECfactsheet. 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.
(RT.com)
Get a daily dose of St Petersburg Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to St Petersburg Star.
More InformationMADRID, Spain: Europe's tourism sector is poised for a strong 2025, with international visitor spending projected to grow by 11 percent...
Brussels has loosened conditions for using the remaining 335 billion in the pandemic recovery fund The European Commission has allowed...
Lee Jae-myung sworn in as S. Korea's new president Lee Jae-myung was sworn in as South Korea's new president on Wednesday after formally...
President Vladimir Putin has informed his US counterpart about Moscows imminent response to Ukrainian attacks on strategic airbases...
Ukraine's leadership is derailing peace process in order to cling to power, according to the Russian president ...
Washington, DC [US], June 5 (ANI): US President Donald Trump held a telephonic conversation with Russian counterpart Vladimir Putin...
CHICAGO, Illinois: A simple blood test could help breast cancer patients get the proper treatment earlier, potentially halving their...
PRAGUE, Czech Republic: Czech Justice Minister Pavel Blažek resigned this week because of a scandal involving bitcoins. Earlier this...
SINGAPORE: On May 31, U.S. Defense Secretary Pete Hegseth told America's Indo-Pacific allies that they would not be left alone to deal...
JERUSALEM (CNN) - Palestinians on their way to receive aid from a distribution site in southern Gaza have come under fire for a third...
WASHINGTON, D.C.: Tensions reignite in the U.S.-China trade truce after President Donald Trump accused Beijing of violating a recent...
NEW YORK CITY, New York: Facing a deepening financial crisis, the United Nations Secretariat is planning to cut 20 percent of its US$3.7...