The adopted economic recovery programme includes all the European Parliament's proposed amendments, following months of squabbling between the two EU co-legislators over the plan's priorities.
The EU executive had hoped for the swift adoption of the programme to give Europe a headstart in the drive for greener growth.
But its adoption dragged on for months as member states argued over the size of their allocations (EurActiv 04/02/09). Many governments were also considering returning money to their national budgets instead of spending it at EU level.
An agreement on the project list was finally clinched at the March European summit (EurActiv 20/03/09). The EU institutions agreed on funding in April, opting to increase the budget for agricultural and environmental measures and to use remaining margins from the 2009 and 2010 budgets (EurActiv 05/05/09).
The Parliament's biggest bone of contention was lack of money for boosting renewable energies and efficiency, and the removal of 'smart cities' from the list. To seal the deal, member states allowed MEPs to insert a provision that unspent money can be used for energy efficiency and renewable energy projects should the Commission report in March 2010 that the priority projects have not been implemented (EurActiv 07/05/09).
The final list of 47 projects includes:
- 18 gas infrastructure projects worth €1,440 million;
- Nine electricity infrastructure projects worth €910m;
- Two small island projects worth €15m;
- Five offshore wind-energy projects worth €565m;
- 13 carbon capture and storage projects worth €1,050m.
The lion's share of the money thus goes on building more interconnections to help avoid a repeat of the January gas crisis, when a dispute between Russia and Ukraine cut off gas supplies to many Eastern European countries. To the disappointment of environmentalists and the renewables industry, carbon capture and storage demonstration projects are also set for a major boost, on the grounds that the fledgling technology needs substantial public backing if it is to take off on a commercial scale.
To ensure that the package serves its purpose as an emergency stimulus, all the money must be committed by the end of 2010. If funding remains, the Commission will propose that they be used for renewables and other green projects.
