Slovakia to receive €900 million less from recovery plan

“Today, the European Commission has solemnly announced that it has approved a €6.3 billion recovery plan. Well, it will almost certainly be significantly less – today’s recalculations say a shortfall of about 900 million,” he wrote on his Facebook page status entitled “900 million penalty for success“. [EPA-EFE/Lukasz Gagulski]

Slovakia is to receive almost €1 billion less from the recovery plan than originally expected, Finance Minister and former PM Igor Matovič has said.

“Today, the European Commission has solemnly announced that it has approved a €6.3 billion recovery plan. Well, it will almost certainly be significantly less – today’s recalculations say a shortfall of about €900 million,” he wrote on his Facebook page on Monday.

The post was titled “€900 million penalty for success.”

Matovič did not provide any information on who did the calculations and on what data these are based. The finance ministry also refused to clarify his statement, referring only to the EU Regulation, which sets out the distribution key defining how the recovery money is allocated to member states.

According to the regulation, up to 70% of grants are received by member countries according to the number of inhabitants, the inverted value of GDP per capita and the relative unemployment rate. The remaining 30% will be calculated in 2022, based on economic developments from 2021 to 2022.

Matovič claims that the main reason for the reduced allocation is better economic development than predicted by the European Commission. “In other words, our aid granted to the economy was better than in other EU countries. And that’s why we get less help from the recovery plan”, he said.

The European Commission estimated in 2020 that the Slovak economy would shrink by 7.5% although its latest forecast said the economy only contracted 4.8% during that period.

(Marián Koreň | EURACTIV.sk)

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