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NEXT GENERATION EU

11 billion euros available for REACT-EU funds by 2022

REACT-EU

REACT-EU resources are released in two tranches to capture in-depth the social and economic impact of the pandemic. Allocations are given according to the country's GDP, overall unemployment and youth unemployment

The European Commission has published the REACT-EU resource allocation for 2022. Around €11 billion (at current prices) are already available for cohesion policy programmes in the 27 Member States.

REACT-EU resources

REACT-EU resources are released in two tranches to capture in-depth the social and economic impact of the pandemic. Allocations are based on countries GDP, as well as total unemployment and youth unemployment rates. The breakdown also takes into account the impact of the coronavirus pandemic on Member States’ economies based on 19 October 2021 statistics.

REACT-EU was the first instrument used under NextGenerationEU, the first payment of EUR 800 million was made on 28 June 2021. The rapid approval of the measures has allowed the Member States to allocate €37 billion, with total payments reaching €6.1 billion. Of these approved measures, €23 billion will be used through the European Regional Development Fund, €12.8 billion through the European Social Fund and €500 million through the European Aid Fund for the Most Deprived.

Details on these solidarity funds

  • European Regional Development Fund (ERDF) – In Spain, the ERDF supported the transition to a digital economy focusing on the digitisation of public services. In the Czech Republic, the ERDF is developing and modernising the “Brno Military Hospital”. In Sweden, the Fund is helping SMEs to recover from the crisis. In France, the ERDF will help modernise the “Henry Becquerel Centre for the Fight against Cancer”.
  • European Social Fund (ESF) – In all Member States, people are receiving training, counseling and career guidance to increase their chances of keeping their job or finding a new one.
  • Fund for European Aid to the Most Deprived Persons (FEAD) – In Austria and Romania, for example, children in need have received school supplies. In Estonia, France and Luxembourg and other Member States, food aid has been given to the most deprived people. In Latvia, FEAD money has also been used to provide masks and disinfectants.

Next steps

  • The Commission has recently started negotiations with the Member States on the use of the 2022 tranche of REACT-EU.
  • Member States will now be able to submit amendments to their programmes to the Commission.
  • Once the amendments are approved, Member States will have access to the new resources from 1 January 2022.

REACT-EU key figures

  • 36.6 billion of total EU funding allocated through the ERDF and ESF.
  • This figure includes the following thematic investments:
    • €5.5 billion from the ERDF allocated in support of green transition, of which €4.7 billion is specifically earmarked for climate action.
    • €2.7 billion from the ERDF allocated to the digital economy.
    • €6.7 billion of ERDF allocated in support of business and enterprise development.
    • €5.7 billion from the ERDF allocated in support of health systems.
    • €12.8 billion from the ESF allocated to support labour market measures, social inclusion and education and training.

More information on REACT-EU

The Recovery Assistance for Europe’s Cohesion and Territories initiative constitutes additional EU budgetary resources funded by the NextGenerationEU Recovery Plan.  It aims to bridge the gap between the immediate emergency response in the context of the COVID-19 pandemic and its social consequences, and long-term recovery.

REACT-EU promotes crisis repair and integrates the green and digital transitions into the recovery strategy to increase the resilience of the economy. These measures can quickly address the negative consequences of the outbreak, for example through investments in energy efficiency, urban greening and digitisation of schools and businesses.