Lithuania seeks additional over half a billion euros in recovery and rescue funds from the European Commission
Lithuania has submitted a fourth payment request for the Recovery and Resilience Facility (RRF), seeking an additional 515 million euros, excluding advance payment. The country has already received RRF funds but is looking for more to continue its recovery and resilience strategy.
The RRF plan, known as "Next Generation Lithuania," focuses on several key areas including health system enhancement, building renovation, education improvements, and tax reforms. The plan finances sustainable initiatives such as affordable and energy-efficient housing, with an emphasis on renovating about 9,500 apartment buildings by 2030 through a €3.3 billion investment.
The government also mandates green building certifications starting from 2025 and requires new public buildings to use at least 50% wood or organic materials from November 2024. These measures align with Lithuania's goals to get up to 90% of energy from renewables by 2030.
Regarding the tax reforms and frozen funds required by the European Commission (EC), the specific updates about the status of frozen RRF funds or detailed required tax changes linked to Lithuania's plan are not yet available. The Recovery and Resilience Facility generally includes tax-related conditions for fund disbursement, but concrete data on Lithuania’s tax reform progress or how any frozen funds are being resolved is not available in the provided information.
Finance Minister Rimantas Sadzius is confident that Lithuania has achieved all the indicators needed for the country to receive the frozen RRF funds. He expects the tax package adopted by the Seimas to satisfy the Commission, with most of the frozen funds to be paid to Lithuania. The Finance Ministry stated that Lithuania has adequately met all targets set out in the RRF plan.
The RRF funds will be used for various purposes, including the health system, building renovation, education, tax reforms, budget system improvements, and a spending review. The full RRF plan for Lithuania, amounting to 3.8 billion euros, must be implemented, accounted for, and the last funds received from the EC by 2026. The frozen RRF funds will be paid out once commitments are met, with a focus on the introduction of a universal property tax.
The RRF funds are part of a larger European Union recovery program designed to support member states during economic recovery from the COVID-19 pandemic. Lithuania expects to receive the RRF funds in December, following a positive assessment from the European Commission. The total amount of RRF funds Lithuania hopes to receive is 2.3 billion euros.
The "Next Generation Lithuania" plan, a part of the Recovery and Resilience Facility (RRF), is focusing on various sectors, including health system advancements and education improvements, with an effort towards renovating 9,500 apartment buildings by 2030 through an €3.3 billion investment. The RRF funds will also be allocated to finance tax reforms and budget system improvements, aiming to meet the target of 90% energy from renewables by 2030.
