The European Commission has approved Belgium's modified recovery and resilience plan, the Commission said on Thursday. The plan now includes €5 billion in grants and €264 million in loans.
The initial plan was validated in 2021 with €5.9 billion in European subsidies, but these were revised to €4.5 billion last year due to the strong post-Covid-19 recovery of the country's economy.
Belgium revised the plan to bring it into line with the effects of inflation and supply chain disruptions over the past two years, but also to include energy subsidies from the REPowerEU plan, which aims to free Europe from Russian fossil fuels.
Belgium plans to focus on energy efficiency in buildings, accelerating the deployment of renewable energies, renewable and fossil-free hydrogen and decarbonising road transport.
In addition to the initial €4.5 billion recovery plan, Belgium has been promised €282 million in subsidies under the REPowerEU plan. The Commission has also given the go-ahead for the transfer of €229 million from Belgium's share of the Brexit adjustment reserve.
What's in store?
Belgium will also benefit from a €264 million loan. In total, the recovery plan represents €5.3 million. The plan will enable Belgium to implement 40 reforms and 119 investment projects. More than half of the funds (51%) will be devoted to measures that support climate objectives, says the European Commission.
By way of example, the Belgian plan provides for the installation of heat pumps and solar panels in social housing in Wallonia; financial incentives for investment in the energy transition of industries; and investment in bus recharging infrastructure in the Brussels-Capital Region.
"This new chapter makes Belgium's ambitions for the transition to a zero-carbon economy a little more concrete," said a Thomas Dermine (PS), Secretary of State for Recovery and Strategic Investments, who coordinated the new version of the plan. "The European Commission's approval of this new recovery plan is a strong signal of confidence in our ability to develop and execute solid projects."
Dermine added that the Ecofin Council on 8 December would have to approve the Commission's assessment, after which Belgium would receive €102 million in pre-financing from the REPowerEU funds. The Commission will authorise further payments depending on the achievement of the milestones and targets set out in the recovery plan.
