A positive preliminary assessment has been approved by the European Commission for Lithuania’s first payment request under Recovery and Resilience Facility. This key instrument is at the heart NextGenerationEU.
The Commission received a payment request from Lithuania on 30 November 2022 based upon the 33 milestones in the Council Implementing decision. This payment request was for the first payment. The Commission considered 31 of 33 milestones fulfilled after reviewing the evidence submitted by Lithuanian authorities. The 31 milestones that were satisfactorily met are a sign of significant progress in the execution of Lithuania’s resilience and recovery plan. These include reforms in areas such as the green and digital transformation, reforms to general and vocational education systems, measures in support innovation and science, and social protection and employment. They also include a digital data storage for monitoring the RRF’s implementation.
Two milestones in taxation, M142 and M144, have not been met satisfactorily by the Commission. Although the Commission acknowledges that Lithuania has taken some steps to meet these milestones, there is still much work to do. As required by Article 24(6) RRF Regulation, the Commission activates the “payment suspension” procedure. This procedure, in accordance with the RRF Regulation, and as explained by the Communications published on 21 February, gives member states extra time to fulfill outstanding milestones while receiving partial payments linked to milestones that have been satisfactorily completed.
The recovery and resilience planincludes many investment and reform actions organized in seven thematic areas. This plan will be supported with more than EUR2bn of grants. 13% (EUR289 millions) was disbursed in August 2021 to Lithuania as prefinancing.
The RRF payments are performance-based and subject to Member States implementing the reforms and investments outlined in their recovery and resilience plans.
The Commission encourages all member states, including Lithuania to implement their recovery and resilience plans promptly.
Ursula von der Leyen, President of the European Commission ( pictured), stated that Lithuania had made good progress in the implementation its recovery and resilience plan. This included reforms on clean transport, 5G deployment, and the improvement of schools equipped with IT equipment. We encourage Lithuania to accelerate its efforts within the next six month on two tax milestones which are still not met. All member states, including Lithuania are encouraged to move quickly with their resilience and recovery plans. “The Commission is here to support you.”
Next steps
According to Article 24(6) RRF Regulation, the positive pre-audit and the suspension of payment are two separate procedures that require different steps.
- Concerning the positive preliminary evaluation: The Commission has now submitted its preliminary assessment of milestones that Lithuania has met to the Economic and Financial Committee, asking for its opinions. In the final assessment of the Commission, it should take into consideration the EFC’s opinion. It is expected to arrive within four weeks. The EFC’s positive preliminary assessment opinion and Lithuania’s observations regarding the suspension of payment will be considered by the Commission. It will then adopt the decision to pay the instalment in accordance with the examination process through a comitology panel. The Commission will adopt the decision and payment can be made to Lithuania.
- Concerning the payment suspension, the Commission has informed Lithuania of the reasons it believes that the two milestones were not met. This communication initiates an administrative process between the Commission, the Member State concerned. The communication now gives Lithuania the right to submit to the Commission its observations within a month of receipt. If the Commission confirms that Lithuania has not met the two remaining milestones, it will suspend the payment by applying its payment suspension methodology (outlined in Annex II to the 21 February Communication). The Commission will give Lithuania six months to meet the remaining milestones. The Commission will be in active dialogue throughout this six-month period with the Lithuanian authorities. If the milestones are met, the Commission will lift suspension of payment and send its assessment, in accordance with the procedure outlined above, to the EFC.
The Commission will evaluate further payment requests from Lithuania based upon the achievement of milestones and targets set out in the Council Implementing Decision. This will reflect progress in the implementation of investments and reforms.
The Resilience Scoreboard shows the progress made in implementing the national recovery plans and resilience strategies.
More information
Questions & Answers about Lithuania’s disbursement request in NextGenerationEU
Question and Answers: The European Commission approves Lithuania’s EUR2.2 million recovery and resilience plan
Information sheet on the recovery and resilience plan
Recovery & Resilience Facility
Resilience and Recovery Facility Regulation
FAQs and Answers: Resilience and Recovery Facility
This article is shared:
reply
retweet
favourite
