Regulation (EU) 2020/460 (Coronavirus Response Investment Initiative)

What it is

to adopt a Coronavirus response investment initiative. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure on an equal footing with the Council. BACKGROUND: the COVID-19 epidemic crisis is hampering growth in the Member States, exacerbating the severe liquidity shortages resulting from the sharp and sudden increase in public investment needed in their health systems and other sectors of their economies. This creates an exceptional situation which needs to be addressed by specific measures. The European Parliament adopted by 683 votes to 1, with 4 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013, Regulation (EU) No 1301/2013 and Regulation (EU) No 508/2014 as regards specific measures to mobilise investments in the health care systems of the Member States and in other sectors of their economies in response to the COVID-19 outbreak [Coronavirus Response Investment Initiative]. The European Parliament adopted its position at first reading in accordance with the ordinary legislative procedure. As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act. The Coronavirus Investment Initiative aims to promote investment by mobilising the cash reserves available in the European Structural and Investment Funds - the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund (CF), and the European Fund for Maritime Affairs and Fisheries (EMFF) - in order to tackle this crisis without delay. It is planned to mobilise EUR 37 billion from the European Structural and Investment Funds for the citizens, regions and countries most affected by the coronavirus pandemic. The funds shall be targeted at health systems, SMEs, the labour market and other vulnerable sectors of EU Member States' economies. Almost EUR 8 billion of pre-financing from EU structural and investment funds was not used by Member States in 2019 and should have been repaid by the end of June 2020. Member States shall now be allowed to keep this money. The EUR 8 billion shall, in combination with co-financing from the EU budget of around EUR 29 billion, lead to an investment capacity of EUR 37 billion. PURPOSE: to adopt a ‘Coronavirus Investment Initiative’ to immediately address the effects of the COVID-19 pandemic. LEGISLATIVE ACT: Regulation (EU) 2020/460 of the European Parliament and of the Council amending Regulations (EU) No 1301/2013, (EU) No 1303/2013 and (EU) No 508/2014 as regards specific measures to mobilise investments in the healthcare systems of Member States and in other sectors of their economies in response to the COVID-19 outbreak (Coronavirus Response Investment Initiative). CONTENT: the Regulation aims to amend the rules of the Structural and Investment Funds - European Regional Development Fund (ERDF), European Social Fund (ESF), Cohesion Fund (CF) and European Fund for Maritime Affairs and Fisheries (EFF) - to release…

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