Malta receives first €41 million instalment from EU COVID recovery fund

Malta has today received the first payment of €41 million in pre-financing grants under the European Union’s Recovery and Resilience Facility. 

The funds, part of the EU's €672 billion aid package, are aimed to help mitigate the devastating impact the pandemic has had on Europe’s economy.

Malta was initially allocated €242 million, but the figure was later increased to €320 million. 

Parliamentary Secretary for European Funds Stefan Zrinzo Azzopardi and Economy Commissioner Paolo Gentiloni signed the Financing Agreement.

The aim of the pre-financing payment is to help kick-start the implementation of the crucial investment and reform measures outlined in Malta’s Plan for Recovery and Resilience as agreed with the European Commission.

Zrinzo Azzopardi said that this first payment provides added impetus in putting Malta’s plan into action, as the government continued to implement the different investments and reforms to the benefit of the country and the citizens.

He said this plan would bring about a greener economy and support the transformation towards a more digital economy. It will also see essential investments in the education and health sector and strengthen Malta’s governance framework.

What’s in the recovery plan?

• 54% of all investments will target environmental and climate initiatives aimed at the transition to a green and circular economy while another 26% will address the transition towards a digital and smart economy.
• €189 million have been allocated for projects addressing climate change and the green economy with initiatives addressing the retrofitting and renovation of public and private commercial buildings to make them more energy-efficient.
• Other investments will be made to support investments in new electric vehicles in both the private and public sectors.
• €55 million have been allocated for a digital, smart and resilient economy while the resilience of the health system will be addressed through investments amounting to €50 million.
• Some €41 million will be spent on the building of a new ITS Campus and the design of new and updated training programmes that will continue to enhance vocational education in Malta.
• The plan also provides an allocation of €10 million for the digitisation of the Law Courts accompanied by various reforms addressing the improvement of Malta’s governance systems.