Proposal for a Regulation establishing a Recovery and Resilience Facility

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


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

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This proposal takes as a basis and replaces a previous proposal on establishing a Reform Support Programme, which is withdrawn.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governance framework for the Budgetary Instrument for Convergence and Competitiveness for the Euro area (BICC) is also withdrawn, as a result.

The Council of the European Union adopted its general approach concerning this proposal on 9 October 2020.

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Commentary and Analysis
Bertelsmann Stiftung: Policy Brief, 11/06/2020: How to spend it right. A more democratic governance for the EU Recovery and Resilience Facility
EPRS: At a Glance, October 2020: Recovery and Resilience Facility: Key features and developments

EurActiv: Topics: Recovery and Resilience Facility

European Commission: Questions and Answers on the EU budget for recovery: Recovery and Resilience Facility (28 May 2020)
European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the Recovery and Resilience Facility (28 May 2020)
European Commission: Remarks by Commissioner Gentiloni at the press conference on the Recovery and Resilience Facility (28 May 2020)
Council of the European Union: Press Release, 09/10/2020: COVID-19: Council agrees its position on the Recovery and Resilience Facility
General Secretariat of the Council: Proposal for a Regulation of the European Parliament and of the Council establishing a Recovery and Resilience Facility - Mandate for negotiations with the European Parliament

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