Helsinki objects to the size and structure of the proposed €750 billion Recovery Instrument, according to a Finnish government statement published today.
The European Commission put forward a plan to raise €750 billion on the markets in 2021-2024 and distribute the bulk of the cash as grants to help countries address the impact of the coronavirus crisis. The EU would repay the money over a 30-year period, starting in 2028. Of the €750 billion, €250 would be disbursed as loans.
“The size of the recovery instrument must be smaller,” the Finnish government wrote. It said Finland prefers a loans-based plan, but is open to discussing options — while pushing for the share of grants to be reduced.
The four frugal countries — Austria, Denmark, the Netherlands and Sweden — have also raised worries about the design of the fund, as have Hungary and the Czech Republic. Italy and Spain followed by Poland are set to receive the largest payouts, according to Commission calculations.
Helsinki wants to see a quicker repayment period and for the instrument to be in place for less time than the four years envisioned in the Commission’s blueprint.
“The repayment period of the recovery instrument must be shorter than the proposed 30 years and the financing arrangement must comply with the treaty’s balanced budget principles,” the government wrote. “The long-term restrictions on budgetary sovereignty for member countries should be kept to a minimum.”
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