The EU institutions have adopted the Recovery and Resilience Facility (RRF) which is at the heart of the EU’s post-pandemic recovery plan.
The RRF will make available 672,5 billion € in grants and loans available for public investment and reforms in the 27 EU Member States to help them address the impact of the COVID-19 pandemic, to foster the green and digital transitions and to build resilient and inclusive societies.
- EU Member States will receive support from the RRF on the basis of their national recovery and resilience plans (NRRPs), which are currently under preparation. These NRRPs are coherent packages of reforms and investment projects, covering six policy areas of European relevance:
Green transition; - Digital transformation;
- Smart, sustainable and inclusive growth and jobs;
- Social and territorial cohesion;
- Health and resilience;
- Policies for the next generation, children and youth, including education and skills.
By summer 2021, it is expected that the European institutions will adopt these NRRPs according to country-specific recommendations that are identi-fying central challenges for each EU Member State. These NRRPs will contribute to the strengthening of competitiveness and enhancing of social and economic cohesion as well as the implementation of the European Pillar of Social Rights.
- Some of the key requirements concern the EU’s green and digital objectives since all NRRPs must:
allocate at least 37% to support the green - transition;
- allocate at least 20% to the digital transformation;
- respect the ‘do no significant harm’ principle
- to protect the EU’s environmental goals;
- ensure that adequate control systems are put in place to prevent, detect and correct corruption, fraud and conflicts of interest.
For the NRRPs approved in 2021, EU Member States will be able to receive pre-financing of up to 13% of the grants and loans provided for in their plan. The rest of the funds will be paid based on the achievement of the agreed milestones and targets.
According to rumours EU Member States are encouraged to be ambitious in making use of the loans under the RRF. The EUFUNDINGMAG will keep you posted on relevant public funding opportunities in the framework of the RRF.
With the Recovery and Resilience Facility in place, it is time to focus all efforts on the preparation and submission of ambitious national recovery and resilience plans. The new facility offers the EU member states the unprecedented possibility of supporting recovery from the COVID-19 crisis and of undertaking green and digital transitions in an inclusive way. We need to make the best use of this opportunity.
– João Leão, Portugalʼs Minister for Finance
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