|Author (Corporate)||European Commission: Secretariat General|
|Series Details||COM (2020) 408|
Legislative initiative published by the European Commission on 28 May 2020, aimed at setting up a Recovery and Resilience Facility (RRF).
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This proposal takes as a basis and replaces a previous proposal on establishing a Reform Support Programme, which is withdrawn.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governance framework for the Budgetary Instrument for Convergence and Competitiveness for the Euro area (BICC) is also withdrawn, as a result.
The Council of the European Union adopted its general approach concerning this proposal on 9 October 2020.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Economic Governance | Situation, EU Budget, Multiannual Financial Framework [MFF]|
|International Organisations||European Union [EU]|