The European Parliament approved last week the EU’s recovery and resilience facility, paving the way for the release of 672.5 billion euros in funding to be allocated to member states to recover after the Covid-19 pandemic subsides with a focus on green and digital transitions.
The regulation establishing the new facility will come into force later this month.
Approved by EU political leaders in December, the funding reserves 37 percent for spending on climate-friendly measures and 20 percent on digital transformation. In this direction, 265 billion euros of the total will be allocated to EU countries in the form of grants and loans for their green transition.
Member states will receive support from the facility on the basis of their national recovery and resilience plans, which are currently under preparation.
“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,” said Portugal Finance Minister João Leão.
Under the regulation, EU states are required to design their national recovery and resilience plans which should cover six policy areas: 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.
Member states have until April 30 to submit their plans to the Commission. Following an assessment and once plans are approved in 2021, member states will be able to get pre-financing of up to 13 percent of the grants and loans provided for in their plan. Remaining funds will be paid based on achievement of the agreed milestones and targets.
The EU Council Portuguese Presidency said the Commission was already in talks with member states about their plans and has received drafts from 19 countries.