Proposal for a Regulation amending Regulation (EU) No 1303/2013 as regards exceptional additional resources and implementing arrangements under the Investment for growth and jobs goal to provide assistance for fostering crisis repair in the context of the COVID-19 pandemic and preparing a green, digital and resilient recovery of the economy (REACT-EU)

Author (Corporate)
Series Details COM (2020) 451
Publication Date 28/05/2020
Content Type

Summary:

Legislative initiative published by the European Commission on 28 May 2020, aimed at setting up the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU).

Further information:

As a response to the immediate sanitary and socioeconomic emergency provoked by the COVID-19 (coronavirus) pandemic, the European Commission put forward a number of initiatives aimed to ensure that all available funding in the 2014-2020 programmes financed from the European Structural and Investment Funds (ESIF) could be mobilised.

The virus outbreak led government to introduce emergency and unprecedented measures to address the immediate challenges that followed. Economic recovery in the aftermath of the pandemic will also depend on national and regional capacity to respond, which may result in an asymmetric recovery and lead to increased disparities, which in turn can undermine the Single Market and the financial stability of the European Union as a whole.

Therefore, the need remains to provide support over the short and medium term to Member States and regions, in particular those whose economy was hardest hit by the pandemic and have least capacity to bounce back. However, the extent to which ESI Funds can provide further support is limited by the availability of unallocated funding remaining of the 2014-2020 programming period. Going further is only possible through additional resources.

The REACT-EU aims to continue and extend the crisis response delivered through the Coronavirus Response Investment Initiative and the Coronavirus Response Initiative Plus. The proposed package includes €55 billion of additional funds that are to be made available to the 2014-2020 European Regional Development Fund (ERDF) and the European Social Fund (ESF) as well as the European Fund for Aid to the Most Deprived (FEAD). These funds are to be provided in 2020 through a revision of the Multiannual Financial Framework (MFF) 2014-2020 and in 2021-2022 from the EU Recovery Instrument.

The Council of the European Union's committee of representatives adopted a partial position on this draft law on 22 July (as it excludes relating financial elements). The relevant committee of the European Parliament adopted its position on this proposal on 7 September. An informal agreement between the co-legislators on a compromise text was reached on 18 November.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:451:FIN
Related Link(s)
Commentary and Analysis
EPRS: EU Fact Sheets, October 2020: Recovery assistance for cohesion and the territories of Europe (REACT-EU) https://www.europarl.europa.eu/thinktank/en/document.html?reference=04A_FT(2017)N134934

News
EurActiv: Topics: REACT-EU https://www.euractiv.com/topics/react-eu/
EurActiv, 28/05/2020: Cohesion becomes central to EU recovery package https://www.euractiv.com/section/economy-jobs/news/cohesion-becomes-central-to-eu-recovery-package/

Official
European Parliament: Legislative Observatory: Procedure File for Proposal on Exceptional additional resources and implementing arrangements under the Investment for growth and jobs goal to provide assistance for fostering crisis repair in the context of the COVID-19 pandemic and preparing a green, digital and resilient recovery of the economy (REACT-EU) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2020/0101(COD)
European Commission: EU budget for recovery: Questions and answers on REACT-EU, cohesion policy post-2020 and the European Social Fund+ (28 May 2020) https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_948
EU EESC: Position Paper on the Proposed Regulation (July 2020) https://www.eesc.europa.eu/en/our-work/opinions-information-reports/opinions/react-eu
Council of the European Union: Press Release, 22/07/2020: REACT-EU: Council agrees on its partial negotiating position https://www.consilium.europa.eu/en/press/press-releases/2020/07/22/react-eu-council-agrees-on-its-partial-negotiating-position/
European Parliament: Press Release, 07/09/2020: REACT-EU: EU support to mitigate immediate effects of the COVID-19 crisis https://www.europarl.europa.eu/news/en/press-room/20200904IPR86420/
European Commission: Press Release, 18/11/2020: Commission welcomes the political agreement on REACT-EU https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2140
European Parliament: Press Release, 18/11/2020: REACT-EU: additional support of €47.5 billion agreed to address impact of COVID-19 https://www.europarl.europa.eu/news/en/press-room/20201113IPR91597/
Council of the European Union: Press Release, 18/11/2020: COVID-19: Presidency and Parliament reach political agreement on REACT-EU https://www.consilium.europa.eu/en/press/press-releases/2020/11/18/covid-19-presidency-and-parliament-reach-political-agreement-on-react-eu/

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Record URL https://www.europeansources.info/record/?p=521892