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

What it is

to create a new ‘Recovery and Resilience Facility’ that aims to support reforms and investments by Member States to mitigate the economic and social consequences of the coronavirus pandemic and make EU economies more sustainable. 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 outbreak of the COVID-19 pandemic in early 2020 changed the economic outlook for the years to come in the Union and in the world, calling for an urgent and coordinated response from the Union in order to cope with the enormous economic and social consequences for all Member States. The challenges linked to the demographic context have been amplified by COVID-19. The Committee on Budgets and the Committee on Economic and Monetary Affairs adopted the joint report by GARDIAZABAL RUBIAL Eider (S&D, ES), MUREŞAN Siegfried (EPP, RO) and PÎSLARU Dragoș (Renew Europe, RO) on the proposal for a regulation of the European Parliament and of the Council establishing a Recovery and Resilience Facility. As a reminder, the Recovery and Resilience Facility aims to support reforms and investments by Member States to mitigate the economic and social consequences of the COVID-19 pandemic and make EU economies more sustainable. The committees recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the Commission's proposal as follows: The committee proposed that the scope of application of the Facility should be extended to refer to six European priorities structured in pillars as follows: just green transition, taking into account the objectives of the Green Deal; digital transformation, taking into account the objectives of the European Digital Strategy; economic cohesion, productivity and competitiveness taking into account the objectives of the Industrial and SME Strategies; social and territorial cohesion, taking into account the objectives of the European Pillar of Social Rights; institutional resilience, in view of increasing crisis-reaction and crisis-preparedness; and policies for the Next Generation, taking into account the objectives of the European Skills Agenda, the Youth Guarantee and Child Guarantee. Recovery and resilience plans eligible for financing under this instrument shall allocate 100% of its allocation, measured in aggregate cost, to investment and reform measures that fall under the six European priorities. Each national recovery and resilience plan shall allocate at least 7% of its allocation, measured in aggregate cost, to investment and reform measures falling under each of the six European priorities. The amended text called for the Facility’s objectives to focus on the six abovementioned European priorities. Particular attention should be given to the interplay and interlinkages between the six European priorities to provide coherence and synergies, thereby generating European added value. The amended text proposed that for a period until 31 December 2022, the Commission should make…

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