European Commission approves new 567 million euro Covid support package for Belgium

The European Commission has approved a new payment tranche of 567 million euros for Belgium under the European recovery fund established to mitigate the impact of the Covid-19 pandemic. With this announcement made on Thursday, it was reported that Belgium has received approximately 70% of the total grant allocated to it under the mechanism, which will end in the next six months. The European Commission, making a positive assessment of the reforms and investments Belgian authorities have committed to implement to obtain this financing, released the amount to be paid. With this newly approved payment, it was noted that Belgium will reach a total exceeding 3.64 billion euros and will have used a large portion of the total budget determined in the grant program.

This fourth payment request made by the Belgian government in December was approved following detailed examinations by the Commission. The release of the 567 million euro tranche confirms Belgium's progress in its national recovery plan, which was approved five years ago and includes 5 billion euros in grants and 230 million euros in low-interest loans. In the statement made by the Commission, it was emphasized that the reform steps implemented by Belgium, particularly in the areas of digitalization, education and training, mobility, and ecological transition, were welcomed. The Brussels administration has completed the necessary procedures for this new financial flow to begin after the country fulfilled the criteria it committed to.

The Commission's report noted that the successful completion of seven infrastructure projects aimed at reconnecting fragmented natural areas in Belgium's Flanders region was specifically rewarded. These projects are described as critical environmental investments implemented to preserve ecosystem integrity and support biodiversity. The assessment stated that Belgium's tangible progress on green infrastructure demonstrates compliance with the EU's environmental objectives and justifies the funds received. These nature conservation projects were highlighted as a concrete example of how the funds received by Belgium contribute to sustainable development goals.

As time runs out for the post-Covid-19 recovery fund, Belgium is also working intensively to receive the remaining payments. Since the fund mechanism is planned to end permanently at the end of this year, the Commission has made it a condition for member states to submit their final payment requests by the end of September. To apply by this date, countries must complete the remaining milestones and targets by the end of August. Belgium must accelerate the reform process without creating force majeure circumstances for the remaining 30% share.

Launched in 2021 and consisting of a total of 650 billion euros in grants and loans, this massive fund was established to support the economic recovery of European Union member states after the pandemic. The use of funds requires concrete reforms and investments from member states in return, and these progresses are meticulously monitored according to predetermined milestones. The digital and green transformation steps Belgium took to make the most efficient use of these funds received a positive note from the Commission. This final payment tranch once again demonstrates Belgium's determination to increase its economic resilience and comply with EU standards.