Proposal for a Regulation establishing a Recovery and Resilience Facility

Author (Corporate)
Series Details COM (2020) 408
Publication Date 28/05/2020
Content Type

Summary:

Legislative initiative published by the European Commission on 28 May 2020, aimed at setting up a Recovery and Resilience Facility.

Further information:

The COVID-19 (coronavirus) pandemic affected the economic outlook for every Member State of the European Union (EU). However, different levels of national resilience and response to the shock across the EU raise the potential for distortion of the level playing field of the Single Market that can lead to increasing economic divergences and aggravate long-term growth challenges.

Sustainable recovery requires strategic policy orientation. It includes enabling the twin transitions towards a greener and digital society while ensuring the strategic autonomy of the EU. It is essential to support investment and enable reforms while responding to major economic and social challenges. It is crucial that recovery strategies put in place by Member States integrate the challenges regarding green and digital transitions.

The proposed Recovery and Resilience Facility aims to offer financial support for those public investments and reforms. It is seen as key programme of the EU Recovery Instrument, in the framework of the revised Multiannual Financial Framework (MFF) for 2021-2027. The proposal includes the provision of non-repayable financial support and loans to Member States to support public investments and reforms, as set out in their recovery and resilience plans. Loans are to complement non-repayable support and are to be proposed in exchange of additional reforms and investments beyond those that benefit from the non-repayable financial support.

This proposal takes as a basis and replaces a previous proposal on establishing a Reform Support Programme, which is withdrawn. It makes appropriate changes to it to reflect the revised objectives, and the adjusted delivery mode of the new instrument. The proposal establishing a governance framework for the Budgetary Instrument for Convergence and Competitiveness for the Euro area (BICC) is also withdrawn, as a result.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:408:FIN
Related Link(s)
Official
European Commission: Questions and Answers on the EU budget for recovery: Recovery and Resilience Facility (28 May 2020) https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_949
European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the Recovery and Resilience Facility (28 May 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_961
European Commission: Remarks by Commissioner Gentiloni at the press conference on the Recovery and Resilience Facility (28 May 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_960

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