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Malta’s Cabinet has approved plans for how to spend €320 million in EU recovery funds for the country’s post-COVID recovery.

An agreement on the plan was reached on Monday, after Cabinet received a presentation regarding how the Government intends to spend funds under the EU Recovery and Resilience Facility.

Malta was initially allocated €242 million from that fund, but the figure was subsequently increased to €340 million, as part of the EU’s €672 billion aid package.

Regarding allocation of the funds, according to sources cited by the Times of Malta, the national plan allocates almost half of the total €320 million to green initiatives – significantly exceeding the 37 per cent mandated by EU rules.

Under EU rules, a further 20 per cent must be ring fenced for digitalisation.

Other areas covered by the funding will include the circular economy, decarbonisation, digital investments, educational initiatives, social policy spending, and investments in upgrading Malta’s institutions.

The Times of Malta indicates that the funding programme will finance 17 major investment projects “earmarked for the coming months”.

The deal comes after industry bodies, including The Malta Chamber, and the Nationalist Party have repeatedly encouraged the Government to draft a plan under the scheme.

Malta is one of the final EU member states to have finalised a funding plan, with the European Commission encouraging countries to submit plans by the end of April, though acknowledging that plans could be submitted until the middle of Europe.

Details of Malta’s plans are expected to be submitted to social partners and made public in parliament on Wednesday.

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