The EU Parliament and the Council approve the Recovery and Resilience Facility
On the 10th of February, the European Parliament gave the green light to the creation of the European Recovery and Resilience Facility (RRF), the main instrument of the Next Generation EU, the European Union's recovery plan to cope with the effects of COVID-19. The Council formally approved the political agreement on the 11th of February 2021.
The establishment of the RRF is a political agreement reached with the Council on 18th of December, which the European Parliament approved by a large majority (582 votes in favour, 40 against and 69 abstentions). The approval of the European Parliament paves the way for the RRF to come into force in the second half of February. The RRF will manage 672.5 billion euros in grants and loans to finance national measures to mitigate the consequences of the pandemic.
Recovery and resilience plans
Member States will have to formally submit their national recovery and resilience plans by 30th of April, which will be assessed by the Commission and adopted by the Council. These plans set out the reforms and public investment projects to be implemented until 2026 that will be supported by the RRF.
Once the recovery and resilience plans have been approved, pre-financing of 13% of the total amount allocated will be made available to Member States.
Countries will have to work on defining their objectives and milestones aligned with European priorities. The RRF is structured around six key EU pillars on which national plans will have to focus:
- Green transition
- Digital transformation
- Economic cohesion, productivity and competitiveness
- Social and territorial cohesion
- Health, economic, social and institutional resilience
- Policies for the next generation
In addition, in each national plan, a minimum of 37% of planned investment and reform spending should contribute to climate objectives, while a minimum of 20% should support the digital transition.
Have a look at the frequently asked questions here.
Source: European Commission
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