The European (EU) Parliament has given the go-ahead for the new Recovery and Resilience Facility (RRF), meant to give funding to help EU countries tackle the effects and consequences of the COVID-19 pandemic. €672.5 billion in grants and loans to support EU countries for three years are available.
Eligibility of funding
National recovery and resilience plans would be eligible for financing if they are consistent with six EU priorities;
- Green transition
- Digital transformation
- Economic cohesion and competitiveness
- Social and territorial cohesion
- Institutional crisis-reaction and crisis preparedness
- Next Generation EU policies – They include the European Skills Agenda, the Youth Guarantee and the Child Guarantee
Each plan will contribute at least 37% of its budget to climate and at least 20% to digital actions.
The RRF will only be made available to member states committed to respecting the rule of law and the European Union’s fundamental values.
Availability of funding
The amount of €672.5 billion in grants and loans will be available to finance national measures designed to alleviate the economic and social consequences of the pandemic, from 1 February 2020 onwards. The funding will be available for three years and EU governments can request up to 13% pre-financing for their recovery and resilience plans. Payments of financial contributions to member states will be made by 31 December 2026.
To provide comparable information on how funds are being used and allow their use to be properly checked, the Commission will make an integrated information and monitoring system available to the member states .
The two committees must now approve the agreement, before putting it to a plenary vote. The Council must also approve the deal.