Belgium risk missing out on half a billion euros if it fails to meet the goals of the European recovery plan on time, according to De Standaard and budget minister Vincent Van Peteghem.
In response to the Covid-19 pandemic, the European Union established a €750 billion recovery fund. The Recovery and Resilience Facility was the main component, with over €337 billion in grants and another €360 billion in low-interest loans.
Initially, Belgium was allocated €5.9 billion in subsidies, but this amount was later reduced due to a better-than-expected economic recovery.
To receive the allocated funds, the Belgian Government had to submit a national recovery plan with specific investment and reform projects to the European Commission. The Belgian plan includes 119 investment projects and 40 reforms, totalling more than €5 billion, according to minister Van Peteghem.
Funds are released once predefined goals or "milestones" are achieved. However, Belgium is lagging behind other European countries in this regard.
"During the long period of ongoing affairs, we lost a lot of time," Van Peteghem noted in his policy statement. Many projects have faced significant delays, and others are now "less timely or realistic."
This may result in an EU "sanction", Van Peteghem warned. For Belgium, the penalty could be as high as missing out on €500 million in recovery funds.
The government plans to thoroughly evaluate all recovery plan projects in the coming months to ensure timely and accurate implementation. They will also consider redirecting any unused funds. European member states have until the summer of 2026 to complete all investments and reforms.
