RRF: Positive preliminary assessment of Denmark’s request for €301m disbursement

Brussels, 20 February 2023

The European Commission has today endorsed a positive preliminary assessment of Denmark’s payment request for €301 million of grants under the Recovery and Resilience Facility (RRF), the key instrument at the heart of NextGenerationEU.

On 16 December 2022, Denmark submitted to the Commission a payment request based on the achievement of the 23 milestones and two targets selected in the Council Implementing Decision for the first instalment. They cover reforms that are part of the green tax reform as well as relating to the digitalisation of the health system. Several milestones and targets also concern major investment measures in the fields of green transition of agriculture and environment, energy efficiency, clean vehicles and ferries, and research.

With their request, the Danish authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 23 milestones and two targets. The Commission has thoroughly assessed this information before presenting its positive preliminary assessment of the payment request.

The Danish recovery and resilience plan includes a wide range of investment and reform measures in 7 thematic components. The plan will be supported by €1.43 billion in grants, of which €201 million was disbursed to Denmark in pre-financing on 2 September 2021.

Payments under the RRF are performance-based and contingent on Member States implementing the investments and reforms outlined in their respective recovery and resilience plans.

President of the European Commission Ursula von der Leyen said:

‘Today I have good news for Denmark: the country is ready to receive a first grant payment of €301 million under NextGenerationEU, Europe’s recovery plan, once EU countries approve our assessment. Denmark has kicked off significant reforms and investments: a reduced registration tax for zero and low emission cars will for instance give Danish households incentives to reduce CO2 emissions. Denmark is also boosting the resilience of its health sector, with measures ensuring stocks of critical medicines and promoting telemedicine. Well done, Denmark!’

Next steps

The Commission has now sent its positive preliminary assessment of Denmark´s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within a maximum of four weeks, should be taken into account in the Commission’s assessment. Following the EFC’s opinion, the Commission will adopt the final decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of the decision by the Commission, the disbursement to Denmark can take place.

The Commission will assess further payment requests by Denmark based on the fulfilment of the milestones and targets outlined in the Council Implementing Decision, reflecting progress on the implementation of the investments and reforms.

The amounts disbursed to the Member States are published in the Recovery and Resilience Scoreboard, which shows progress of the implementation of the national recovery and resilience plans.

For More Information

Preliminary assessment

Question and Answers on Denmark’s disbursement request under NextGenerationEU

Press release on €201 million in pre-financing to Denmark

Question and Answers on Denmark’s recovery and resilience plan

Factsheet on Denmark’s recovery and resilience plan

Council Implementing Decision

Annex to the Proposal for a Council Implementing Decision

Staff-working document

Recovery and Resilience Facility

Recovery and Resilience Scoreboard

Recovery and Resilience Facility Regulation

Question and Answers on the Recovery and Resilience Facility

EU as a borrower website

Quotes

Today I have good news for Denmark: the country is ready to receive a first grant payment of €301 million under NextGenerationEU, Europe’s recovery plan, once EU countries approve our assessment. Denmark has kicked off significant reforms and investments: a reduced registration tax for zero and low emission cars will for instance give Danish households incentives to reduce CO2 emissions. Denmark is also boosting the resilience of its health sector, with measures ensuring stocks of critical medicines and promoting telemedicine. Well done, Denmark!

President Ursula von der Leyen – 28/02/2023

Congratulations to Denmark for meeting the first 25 milestones and targets set out in its recovery and resilience plan. Once the Commission’s assessment is reviewed by Member States, Denmark should be set to receive €301 million in grants. The successful implementation of Denmark’s plan will help to improve the quality of life for its people, bringing positive changes across a range of sectors such as healthcare, energy efficiency, clean transport and agriculture. It will help to make Denmark’s economy fit for the future, supporting it to be greener and more digital. We will work closely with the Danish authorities to implement the reforms and investments identified in the plan.

Executive Vice-President Valdis Dombrovskis – 28/02/2023

Today’s positive preliminary assessment of Denmark’s first payment request marks an important step in the roll-out of the country’s recovery and resilience plan. Our assessment found that Denmark had successfully implemented the 23 milestones and two targets linked to this request. These include measures to support the green transition of Danish firms and households, as well as major investments in areas including health, environment-friendly agriculture and sustainable mobility. Once the relevant procedures are finalised, we will be able to make a payment of EUR €301 million to Denmark. In these uncertain times, delivering on the country’s reform and investment agenda will contribute to strengthening Denmark’s economic resilience.

Commissioner Paolo Gentiloni – 28/02/2023

Source – EU Commission

Q&A: Denmark’s disbursement request under NextGenerationEU

Brussels, 28 February 2023

How did the Commission assess Denmark’s first payment request?

On 16 December 2022, Denmark submitted to the Commission a request for the disbursement of €301 million under the Recovery and Resilience Facility (RRF). The request was based on the achievement of the 23 milestones and two targets for the first instalment, as outlined in the Council Implementing Decision approving the plan. They cover reforms that are part of the green tax reform and include measures supporting the green transition of Danish businesses in line with the National Energy and Climate Plan. Other initiatives give incentives to Danish households to reduce CO2 emissions through a reduced registration tax for zero and low emission cars and a reduced electricity tax on charging electric vehicles. Milestones and targets also concern major investments in the fields of health, environment-friendly agriculture, energy efficiency and carbon capture and storage technologies, sustainable mobility, and research and development measures supporting the green transition.

With their request, the Danish authorities provided detailed and comprehensive evidence demonstrating the fulfilment of all the milestones and targets. The Commission has thoroughly assessed this information before endorsing the positive preliminary assessment of the payment request.

What are the next steps?

The Commission has now sent the positive preliminary assessment of Denmark’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within maximum four weeks, should be taken into account in the Commission’s assessment. The Commission will adopt the decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of this decision by the Commission, the disbursement to Denmark would take place. The amounts disbursed to the Member States will be published in the Recovery and Resilience Scoreboard. The Commission has also shared its positive preliminary assessment with the European Parliament.

How do the milestones and targets achieved by Denmark so far effectively support the green transition?

The green transition is supported by a broad green tax reform that encourages the green and digital transition of Danish businesses in line with the National Energy and Climate Plan and recently expanded national targets. Denmark’s first instalment includes a set of first milestones linked to two investment measures and one reform under the green tax reform. Under the first investment measure, companies can receive a tax benefit for undertaking investments contributing to the green and digital transition due to their reduced CO2 emissions. The second investment measure is an incentive to increase companies´ investments in the green transition through a higher ceiling for investments benefitting from immediate full tax depreciation, rather than depreciation over four years, as per the normal rules. In total 59% of the spending under the Danish plan supports the green transition.

How do the milestones and targets achieved by Denmark so far effectively contribute to the digital transition?

The Danish plan supports a broad Digital Strategy designed to promote a digital transformation of all sectors of society. The milestones and targets relating to the Digital Strategy are covered in future instalments and do not feature in the first payment request.

How do the milestones and targets achieved by Denmark so far contribute to improving Denmark´s economic and social situation, and its resilience?

The Danish plan supports a range of measures to improve the resilience of the health sector, including measures to ensure stocks of critical drugs. Measures to ensure the sufficient supply of medical products in crisis situations have also been implemented. It also supports the rollout of digital measures to promote telemedicine.

Does the achievement of these first milestones and targets contribute to an effective implementation of the Plan?

The milestones and targets fulfilled constitute significant steps in the implementation of Denmark´s recovery and resilience plan, as they make up nearly one third of all the milestones and targets of the plan. They include important measures, such as the green tax reform that is a key step in transforming the Danish economy towards a more sustainable economy.