EP gives go-ahead to €672.5 bln Recovery and Resilience Facility

European Parliament approved the Recovery and Resilience Facility, designed to help EU countries tackle the effects of the Covid-19 pandemic. The regulation on the objectives, financing, and rules for accessing the Recovery and Resilience Facility (RRF) was adopted with 582 votes in favor, 40 against, and 69 abstentions. The RRF is the biggest building block of the €750 billion Next Generation EU recovery package.

The amount of €672.5 billion in grants and loans will be available to finance national measures designed to alleviate the economic and social consequences of the pandemic. Related projects that began on or after  February 1, 2020, can be financed by the RRF, too. The funding will be available for three years and EU governments can request up to 13 percent pre-financing for their recovery and resilience plans.

To be eligible for financing, national recovery and resilience plans must focus on key EU policy areas – the green transition including biodiversity, digital transformation, economic cohesion and competitiveness, and social and territorial cohesion. Those that focus on how institutions react to crises and supporting them to prepare for them, as well as policies for children and youth, including education and skills, are also eligible for financing.

Each plan has to dedicate at least 37 percent of its budget to climate and at least 20 percent to digital actions. They should have a lasting impact in both social and economic terms, include comprehensive reforms and a robust investment package, and must not significantly harm environmental objectives.

The regulation also stipulates that only member states committed to respecting the rule of law and the European Union’s fundamental values can receive money from the RRF.

(PAP)