Government approves EU recovery funding plan

Flag of the European Union and related institutions next to the Estonian flag. Source: ERR

The government has approved the distribution of money from the European Union's Recovery and Resilience Facility (RRF) and React-EU and several projects including the Tallinn Old Harbor tram line, Tallinn Hospital and Haapsalu railway will receive funding.

Estonia has the opportunity to use approximately €1.2 billion on top of the two funds. €178 million of this is from the REACT-EU Rapid Crisis Response fund, which is dedicated to dealing with the effects of the corona crisis.

It supports vaccination, testing, sewage monitoring studies, funding the establishment of isolation wards in hospitals and the training of staff in healthcare facilities and care homes.

Part of the REACT-EU funds will be used for economic recovery and €17.7 million will be earmarked to support the tourism sector, which has been hit hard by the crisis, and €28 million for business development.

Over €600 million has been set aside for projects related to the green and digital revolutions.

€312 million will be used to support entrepreneurship, including support for the digital revolution in the economy, the Green Enterprise Fund, the promotion of integrated hydrogen technologies and support for business in foreign markets.

€25 million euros will be used for creating internet connections with the "last mile" scheme.

€34 million will be used to build the railway line between Haapsalu and Rohuküla, €26 million for Tallinn's new tram line and €31 million for the Rail Baltic Ülemiste terminal. The government also hopes to finance Tallinn's new hospital with the money.

€55.5 million is planned to be spent on helicopters for the ambulance service.€17.6 million will be used to go to support the tourism sector, €64 million will go to fight the coronavirus.

Estonia has the opportunity to access approximately €1.1 billion of funding from the EU.


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Editor: Helen Wright

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