EUROPEAN PARLIAMENT'S APPROVAL OF RECOVERY AND RESILIENCE FACILITY

EUROPEAN PARLIAMENT'S APPROVAL OF RECOVERY AND RESILIENCE FACILITY

On the 9th of February, the EP voted and passed EU’s Recovery and Resilience Facility (RRF): the EU's centrepiece of #NextGenerationEU COVID-19 recovery package. Unprecedented fundings - €672.5 billion in grants (up to €312.5 billion) and loans (up to €360 billion) - will finance national measures designed to alleviate consequences of the pandemic and guarantee a green and sustainable recovery.

Member States have to submit their own recovery and resilience plans to the European Commission to be assessed within two months. To be eligible, those plans must design sustainable investments and reforms projects that are in line with six key areas identified by the EU:

  • green transition
  • digital transformation
  • growth, jobs and cohesion
  • social and territorial cohesion
  • health, economic, social and institutional resilience
  • policies for the next generation

The priority is given to the first two key areas identified, since each national plan has to dedicate at least 37% of expenditure for climate investments and reforms and 20% to foster the digital transition. Of note is that Member States who are not committed to respecting the rule of law and the European Union’s fundamental values may not receive money from the RRF.

Thereafter, the Council will approve those plans within a month on a case-by-case basis, and a pre-financing of 13% of the total amount allocated to Member States will be made available. Subsequent disbursements will depend on reaching concrete milestones and targets, and will have to be set out in the plans.

Official results of the 9th of February EP voting session: 582 votes in favour, 40 against and 69 abstentions. The European Council adopted the RRF on the 11st of February. It is now expected to be published in the Official Journal on 18 February and will enter into force the following day.
More information available on the EU's next long-term budget and #NextGenerationEU here.

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