Regulation (EU) 2021/241 establishing the Recovery and Resilience Facility

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Series Details L 57, Pages 17-75
Publication Date 18/02/2021
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Summary:

Regulation (EU) 2021/241 - formally signed by the co-legislators on 12 February 2021 - setting up the 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 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This proposal takes as a basis and replaces a previous proposal on establishing a Reform Support Programme, which is withdrawn.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governance framework for the Budgetary Instrument for Convergence and Competitiveness for the Euro area (BICC) is also withdrawn, as a result.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 initiative was tabled by the European Commission on 28 May 2020. The Council of the European Union adopted its general approach concerning this proposal on 9 October 2020. The European Parliament's relevant committees adopted a negotiating position on 9 November. An informal agreement between the co-legislators concerning this initiative was reached on 18 December. This was formally endorsed by the Parliament's plenary on 10 February 2021, and on the following day by the Council. The Act was signed on 12 February 2021 and published in the Official Journal on 18 February 2021.

Source Link http://data.europa.eu/eli/reg/2021/241/oj
Related Link(s)
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 https://www.bertelsmann-stiftung.de/de/publikationen/publikation/did/how-to-spend-it-right-en
EPRS: At a Glance, October 2020: Recovery and Resilience Facility: Key features and developments https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2020)659268
EIPA: EIPA Papers, February 2021: Recovery and Resilience Plans for the Next Generation EU: a unique opportunity that must be taken quickly, and carefully https://www.eipa.eu/wp-content/uploads/2021/02/EIPA_Paper_Recovery-and-Resilience-Plans-for-the-Next-Generation-EU_Digitaal.pdf
EPRS: At a Glance, February 2021: Establishing a Recovery and Resilience Facility https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2021)679069
Politico, 08/02/2021: Brussels’ recovery bet: Tying funds to structural reforms https://www.politico.eu/article/brussels-recovery-bet-tying-funds-to-structural-reforms/
EPRS: Briefing, March 2021: European Parliament involvement in scrutinising the Recovery and Resilience Facility https://www.europarl.europa.eu/thinktank/en/document.html?reference=IPOL_BRI(2021)659627
EUObserver: Opinion 08/03/2021: Covid-19 recovery: How to miss the target even with a bazooka https://euobserver.com/opinion/151145
EPRS: Briefing, March 2021: Recovery and Resilience Facility https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2021)679088

News
EurActiv: Topics: Recovery and Resilience Facility https://www.euractiv.com/topics/recovery-and-resilience-facility/
Politico, 18/12/2020: EU recovery fund deal may get money flowing in summer https://www.politico.eu/article/eu-coronavirus-recovery-fund-deal-money-flowing-summer/
Reuters, 09/02/2021: EU urges governments to think green, digital before recovery plan launch https://www.reuters.com/article/idUSKBN2A91PH
EurActiv, 17/02/2021: Concerns raised over green spending as EU moves forward with recovery plan https://www.euractiv.com/section/energy-environment/news/concerns-raised-over-green-spending-as-eu-moves-forward-with-recovery-plan/

Official
EUR-LEX: COM(2020)408: Proposal for a Regulation establishing a Recovery and Resilience Facility https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:408:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on Recovery and Resilience Facility (2020/0104(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2020/0104(COD)
European Parliament: Legislative Train Schedule: Regulation of the European Parliament and of the Council establishing a Recovery and Resilience Facility https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-recovery-and-resilience-facility
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
Council of the European Union: Press Release, 09/10/2020: COVID-19: Council agrees its position on the Recovery and Resilience Facility https://www.consilium.europa.eu/en/press/press-releases/2020/10/09/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 https://www.consilium.europa.eu/media/46069/st11538-en20.pdf
European Parliament: Press Release, 18/12/2020: COVID-19: deal to give go-ahead to the new Recovery and Resilience Facility https://www.europarl.europa.eu/news/en/press-room/20201211IPR93662/
European Commission: Press Release, 18/12/2020: Commission welcomes political agreement on Recovery and Resilience Facility https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2397
Council of the European Union: Press Release, 18/12/2020: Recovery and Resilience Facility: Council presidency and Parliament reach provisional agreement https://www.consilium.europa.eu/en/press/press-releases/2020/12/18/recovery-and-resilience-facility-council-presidency-and-parliament-reach-provisional-agreement/
Swedish Government: Article, 29/12/2020: EU Recovery and Resilience Facility (RRF) https://www.government.se/articles/2020/12/eu-recovery-and-resilience-facility-rrf/
Portuguese Council Presidency: News, 09/02/2021: Recovery and Resilience Facility: a new joint endeavour, fighting against the consequences of the pandemic https://www.2021portugal.eu/en/news/recovery-and-resilience-facility-a-new-joint-endeavour-fighting-against-the-consequences-of-the-pandemic/
S&D Group: Newsroom, 09/02/2021: The Recovery Fund is a stepping-stone for our common future, say S&Ds https://www.socialistsanddemocrats.eu/newsroom/recovery-fund-stepping-stone-our-common-future-say-sds
EPP Group, 09/02/2021: Coronavirus Recovery Fund: €672.5 billion comes with conditions https://www.eppgroup.eu/newsroom/news/coronavirus-recovery-fund-672-5bn-comes-with-conditions
G/EFA Group: News, 09/02/2021: Recovery Fund essential to ecological transition https://www.greens-efa.eu/en/article/press/recovery-fund-essential-to-ecological-transition/
European Parliament: Press Release, 10/02/2021: Parliament gives go-ahead to €672.5 billion Recovery and Resilience Facility https://www.europarl.europa.eu/news/en/press-room/20210204IPR97105/
European Commission: Press Release, 10/02/2021: Commission welcomes European Parliament's approval of Recovery and Resilience Facility https://ec.europa.eu/commission/presscorner/detail/en/ip_21_423
European Commission: Questions and answers: The Recovery and Resilience Facility (10 February 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_481
Council of the European Union: Press Release, 11/02/2021: EU recovery package: Council adopts Recovery and Resilience Facility https://www.consilium.europa.eu/en/press/press-releases/2021/02/11/eu-recovery-package-council-adopts-recovery-and-resilience-facility/
European Commission: Statement by President von der Leyen at the joint press conference with President Sassoli and Portuguese Prime Minister Costa on the Recovery and Resilience Facility (12 February 2021) https://ec.europa.eu/commission/presscorner/detail/en/statement_21_563

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