“Magic of the numbers” in the updated draft EU budget: the most important thing for Lithuania Business



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The BNS news agency presents the most relevant indicators for Lithuania:

1. Recovery fund. Updated formula to allocate grants from the emerging recovery fund after the coronavir crisis. The economic indicators in 2020 and 2021 will play an important role in the allocation of funds. Unofficial calculations show that support for Lithuania would be lower than the European Commission’s proposal in May, but higher than last week’s proposal. Subsidies can amount to around one and a half trillion euros, with fluctuations of several hundred million euros under different formulas. In addition, the possibility of requesting additional loans of around € 2 billion is foreseen.

2. Agriculture. General support for agriculture is declining, but additional compensation is planned for Lithuania and eight other countries. It is proposed to allocate an additional € 125 million of rural development funds to Lithuania. This can be seen as partial compensation for lower direct payments to farmers.

3. Cohesion support. In any case, the so-called cohesion support allocated to Lithuania to reduce the backwardness of the poorest regions will decrease as economic indicators get closer to the EU average. The essential provisions have not changed:

* A fuse is provided so that the reduction cannot exceed 24%.

* Emigration compensation remains, which can be used by Lithuania and Latvia. For Lithuania, it can reach about 180 million. euros

* Up to 85% of EU funding will be available. project quantities This provision would apply to one of the two regions of Lithuania, the one with the lowest economic indicators and not including Vilnius. In the Vilnius region, EU funds could cover up to 40%. project quantities

4. Dismantling of the Ignalina nuclear power plant. In 2021-2027, 490 million euros are foreseen for the closure of the Ignalina nuclear power plant. Lithuania would have to contribute 14 percent. your budget.

5. Königsberg Transit. The renovated project offers between 139 and 189 million. to increase funding for the so-called Special Transit Scheme, which is used by Russian citizens traveling through Lithuania between the main part of Russia and the Königsberg region.

Other important provisions:

* the budget is still a reference to the Rail Baltica railway project

* 1,500 million euros for military mobility to manage roads and bridges for military logistics.

* Horizon’s research and innovation funding was reduced by several billion euros

* For the NDICI foreign policy instrument, it is proposed to increase the funds of the recovery fund by 70 billion. up to 80 billion This would provide more funds for the eastern neighborhood than in this financial perspective

* Tens of millions of euros increase in the Creative Europe program, which funds the EU’s efforts to combat propaganda.

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Officials following the talks so far have called the “lead-free moose division” because there are serious questions about whether the budget will be approved this weekend.

At the European Council, which started on Friday morning, the breakthrough had not yet taken place before Saturday night, with disagreements over package size and money distribution rules, with the group of austerity countries led by the Dutch who refuse to share borrowed money with southern European countries without strict conditions.

“It is highly unlikely that an agreement will be reached today because the positions are still too strong. The tension persists, and it is not clear how it will end,” a senior diplomat told reporters on Saturday night, following the course. of the negotiations.



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