This state outlines plans to consolidate a minimum vital supply figure. The question remains: what blocks power outages for vulnerable households and beneficiaries of social bonuses? The formula was initially temporary and expired on December 31. As described in the annex to the recovery plan prepared by the government and to be submitted to Brussels in the coming weeks, the goal now is to strengthen this figure within the sections dedicated to expanding social protection and adapting to the effects of the war in Ukraine.
With this annex, the plan includes 59 investment measures and reforms, 15 of which are new and 15 are expansions of existing efforts. The Manager aims to secure an additional 7.7 billion euros in European transfers and more than 84 billion euros in loans, roughly 15 billion of which would flow through ICOs. Reports indicate that 10 billion will go toward the ICO GREEN Line and 5 billion toward the ICO PYME line. The reforms laid out in this 126-page document are designed to strengthen energy, agri-food, industrial, technological, and digital autonomy while responding to the disruptions caused by the war in Ukraine.
Economy officials will detail the text and planned measures in Congress. The objective is to develop social capital at a moment when the consequences of Russia’s war in Ukraine could hit the most vulnerable even harder. The appendix emphasizes strengthening social protection systems, improving health care coverage, and facilitating access to health services in the living place scenario.
The minimum vital supply figure, along with reforms to the electricity social bond and the regulated electricity tariff, is included in this package. There is also a focus on modernizing urban planning through a plan for the provision of rental housing. In health, procedures outline how new drugs will be incorporated into public funding, and how their prices will be determined as digital health strategies are rolled out.
Renewable energy
The plan highlights steps to streamline administrative processes and speed up permitting for new renewable generation projects, with emphasis on decentralized installations and self-consumption. It also lays out the regulatory regime for floating photovoltaic plants and aims to modernize the business environment by amending competition laws and approving regulations governing the status of bankruptcy administration.
According to the document intended for Brussels, the full plan could lift GDP by about 3 percent on average by 2031. This would come first from bolstering public investment, including a state-backed budget loan package that reached 38 billion euros by late 2022, a 33 billion euro call, and a 22 billion euro recall in activity, all designed to catalyze growth.
In line with the push for sustainable finance, 10 billion euros are allocated to a new ICO Verde line. Its aim is to facilitate corporate investments in decarbonization and adaptation to higher energy costs. As with existing mechanisms, the ICO will receive resources and extend loans to companies via cooperation agreements with voluntary lenders. The ICO will also directly channel funds for selected sustainable projects.
Another 5 billion euros have been set aside for the already existing ICO PYME line to sustain the financing backbone for small and medium-sized enterprises, especially in the face of potential tighter credit conditions and the need to stabilize overall financial support for the economy.
The document also plans to strengthen several PERTE initiatives already underway, including the electric vehicle program, and to launch a new one focused on industrial decarbonization, signaling a broad push toward a cleaner, more resilient industrial base.