NextGenerationEU funding and the future of Europe

A significant portion of the Next Generation EU funding will be allocated to sustain a digitally focused growth strategy. It can increase its equitability by introducing innovations that enhance citizens' welfare and support economic resilience.

EU priorities mainly centre on:

• Building a real data-driven economy as a catalyst for innovation and job creation
• Supporting improved connectivity and deploying cutting edge and resilient digital infrastructures (e.g. 5G)
• Enhancing the digitalisation and innovation of Public Administration (including judicial and healthcare system)
• Favouring the digital transition of enterprises
• Improving capabilities in crucial sectors leveraging digital capabilities (e.g. AI, cloud and cybersecurity)
• Adapting the education systems to support digital skills and facilitating reskill and upskill.

Only 4 out of 10 citizens are satisfied with the level of digitalisation in their country.

Next Generation EU funding and the future of Europe: A unique opportunity for growth, Deloitte, November 2021

The EU has developed a new strategy to address climate and environmental challenges that will help a transition to a modern, competitive, and resource-efficient economic model.

It involves separating economic growth from resource use and net greenhouse gas emissions no longer generated.

NGEU will play a key role in making Europe the first climate-neutral continent within 2050 by:

• Investing in future-proof clean technologies
• Improving energy efficiency of public and private buildings
• Promoting sustainable, accessible, and smart public and private transportation
• Enabling a more circular economy
• Supporting the transition towards renewable energy sources
  

36% of citizens within the NGEU perimeter would like to live in a country that invests more in innovation to achieve sustainability goals.

Next Generation EU funding and the future of Europe: A unique opportunity for growth, Deloitte, November 2021

The Europe of tomorrow will reduce any social inequality and disparity to create a more unified model. NGEU will support medium-term investments and reforms promoting social resilience in EU member states, as well as aiming to reduce social disparity by implementing the following:

• Ensuring a homogeneous level of services to all EU citizens
• Improving labour policies
• Modernising labour market systems
• Supporting social inclusion and reducing social gaps
• Investing in modern social and educational infrastructures

1 in 2 citizens would like to see a greater emphasis on education, training and research in the post-COVID future.

Next Generation EU funding and the future of Europe: A unique opportunity for growth, Deloitte, November 2021

Malta’s EU Recovery and Resilience Facility Plan

Malta has submitted its Recovery and Resilience Plan (the ‘Plan’) to the EU Commission on 13 July 2021. The Plan has been endorsed by the EU Commission on 16 September 2021, following which, upon approval by the European Council of the €316.4 million in grants to be allocated to Malta, the first €41.1 million in pre-financing will be disbursed.

The key measures of Malta’s Plan are as follows:

• Digitalisation of public administration and public services;

• Digitalisation of companies;

• Digitalisation of the justice system.
  

• Energy-efficiency renovations and greening of private and public buildings;
• Financing deep retrofitting and renewable energy installations;
• Access to free public transport;
• A new ferry-landing place at St Paul’s Bay/Buġibba.
  

Health Sector

• Promoting integration and well-being of foreign health workers;

• Establishing a Blood, Tissue and Cell Centre for Malta;

• Introducing digital technologies to facilitate interaction with patients and health professionals and improve treatment.

Education Sector

• Enhancing the quality and inclusiveness of education and training;

• Strengthening early school leaving prevention measures;

• Expanding guidance and opportunities for upskilling and reskilling for all adults;

• Reinforcing quality inclusive education for pupils with special needs;

• Improving the education policy monitoring system.

Justice System

• Strengthening the independence and efficiency of the courts and of the investigative and prosecutorial arms of the justice system.

Taxation

• Introducing transfer pricing rules;

• Analysis-driven proposals of legislation to limit inbound and outbound payments to EU-listed non-cooperative and low tax jurisdictions;

• Adoption of other measures that partially curb aggressive tax planning.
  

How can we help?

Deloitte Malta is able to assist in answering your queries, so please do not hesitate to reach out to us for any further guidance you may require.

In addition, Deloitte Malta is able to assist with the preparation of the required applications and any supporting documentation, as well as document submission and any required follow-ups.