Malta will receive €1.1 billion as part of a fund approved by the European Parliament to help member states recover from the COVID-19 pandemic and its wide-ranging repercussions.

Earlier today, the European Parliament approved a €672.5 billion package composed of grants and loans on Wednesday with 582 votes in favour, 40 against and 69 abstentions.

To be eligible for fundings,  plans must focus on key EU policy areas, such as the green transition, digital transformation, economic cohesion and competitiveness, and social and territorial cohesion. 

Those that focus on how institutions react to crisis and supporting them to prepare for it, as well as policies for children and youth, including education and skills, are also eligible for financing.

Each plan has to dedicate at least 37% of its budget to climate and at least 20% to digital actions. They should have a lasting impact in both social and economic terms, include comprehensive reforms and a robust investment package, and must not significantly harm environmental objectives.

Respect for rule of law and the EU’s fundamental values are a prerequisite to receiving funding.

Malta may face some concerns. Firstly, there are recommendations to several member states – including Malta Cyprus, Hungary, Ireland, Luxembourg and the Netherlands – to change their aggressive tax systems.

Meanwhile, the country is also part of six countries ( Malta, Bulgaria, Denmark, Estonia, Latvia, Sweden,I reland, Luxembourg, Netherlands, Slovakia, and Finland) to enhance their anti-money laundering regulations and supervision.

Once Council has also formally approved the regulation, it will enter into force one day after its publication in the Official Journal of the EU.

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