Slovenia plans to significantly exceed the green spending target set in the EU’s Recovery and Resilience Facility but will not take advantage of the entirety of the available loans, according to the National Recovery and Resilience Plan that the government adopted on Wednesday.
More than 43% of total spending will be set aside for climate investment and reforms, above the 37% threshold, and just over 20% for the digital transition, slightly above the statutory minimum.
Overall, Slovenia plans to draw almost its entire allocation of grants, €1.8 billion, but just €666 million in loans, roughly a sixth of what is available, since the treasury can currently borrow on international markets at very favourable terms.
“Given its excellent credit rating, Slovenia is currently borrowing at negative interest,” the government said, adding that it will increase the scope of loans if necessary. Member states have until August 2023 to do so.
Only broad outlines of the plan have been revealed so far. There are four main pillars: the green transition; digital transformation; smart, sustainable and inclusive growth; and health and social security.
The government said the priority areas involve reforms and public investments that will mitigate the negative economic and social effects of the COVID-19 pandemic and “prepare the country for the challenges inherent to the green and digital transition”.
The plan will be submitted to the European Commission before the 30 April deadline and a new department will be created at the finance ministry on 1 June to act as national coordinator for its implementation.