Source: Council of the European Union 2
The German presidency and the European Parliament’s negotiators today reached a provisional agreement on the Recovery and Resilience Facility. With a financial envelope of €672.5 billion, the facility is the centrepiece of the Next Generation EU recovery instrument. It will support public investments and reforms in member states, helping them to address the economic and social impact of the COVID-19 pandemic, as well as the challenges posed by the green and digital transitions.
The Council adopted its position on the facility in October, building on the political guidance provided by the EU leaders on 17-21 July 2020 as part of the negotiations on the multiannual financial framework and the recovery package.
Today’s agreement with the European Parliament on the Recovery and Resilience Facility is the last key element of the EU’s historic recovery package. With 672.5 billion euros the facility sends a strong signal of Europe’s unity and determination to counter the COVID-19 crisis. It will give a strong boost to our economies and enable member states to shape a greener and more digital future for Europe’s citizens and businesses. This agreement is a crucial step to ensure that the much needed money can start flowing next year.
Olaf Scholz, Germany’s Federal Minister for Finance and Vice Chancellor
The provisional agreement reached with the Parliament covers a number of elements, including the scope of the facility, horizontal principles, general eligibility rules for the national recovery and resilience plans, the elements to be provided in each plan and the assessment criteria used by the Commission. At least 37% of each plan’s allocation has to support the green transition and at least 20% the digital transformation. Support will be closely linked to the recommendations of the European Semester, which identify central challenges for each member state to address to strengthen competitiveness as well as social and economic cohesion.
The governance arrangements have been confirmed as negotiated by the EU leaders. In addition, the European Parliament will be more closely involved throughout the lifespan of the implementation of the facility, including through a Recovery and Resilience Dialogue.
The provisional agreement will now be submitted to both institutions for endorsement.