| Author (Corporate) | European Commission: DG Regional and Urban Policy |
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| Series Details | COM (2020) 451 |
| Publication Date | 28/05/2020 |
| Content Type | Policy-making |
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Summary: Legislative initiative published by the European Commission on 28 May 2020, aimed at setting up the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU). Further information: As a response to the immediate sanitary and socioeconomic emergency provoked by the COVID-19 (coronavirus) pandemic, the European Commission put forward a number of initiatives aimed to ensure that all available funding in the 2014-2020 programmes financed from the European Structural and Investment Funds (ESIF) could be mobilised. The virus outbreak led government to introduce emergency and unprecedented measures to address the immediate challenges that followed. Economic recovery in the aftermath of the pandemic will also depend on national and regional capacity to respond, which may result in an asymmetric recovery and lead to increased disparities, which in turn can undermine the Single Market and the financial stability of the European Union as a whole. Therefore, the need remains to provide support over the short and medium term to Member States and regions, in particular those whose economy was hardest hit by the pandemic and have least capacity to bounce back. However, the extent to which ESI Funds can provide further support is limited by the availability of unallocated funding remaining of the 2014-2020 programming period. Going further is only possible through additional resources. The REACT-EU aims to continue and extend the crisis response delivered through the Coronavirus Response Investment Initiative and the Coronavirus Response Initiative Plus. The proposed package includes €55 billion of additional funds that are to be made available to the 2014-2020 European Regional Development Fund (ERDF) and the European Social Fund (ESF) as well as the European Fund for Aid to the Most Deprived (FEAD). These funds are to be provided in 2020 through a revision of the Multiannual Financial Framework (MFF) 2014-2020 and in 2021-2022 from the EU Recovery Instrument. The Council of the European Union's committee of representatives adopted a partial position on this draft law on 22 July (as it excludes relating financial elements). The relevant committee of the European Parliament adopted its position on this proposal on 7 September. An informal agreement between the co-legislators on a compromise text was reached on 18 November. |
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| Source Link | Link to Main Source https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:451:FIN |
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| Subject Categories | Economic and Financial Affairs, Internal Markets |
| Subject Tags | Cohesion Policy, European Structural and Investment Funds [ESIF], Multiannual Financial Framework [MFF], Regional Dimension |
| Keywords | European Regional Development Fund [ERDF], European Social Fund [ESF], Fund for European Aid to the Most Deprived [FEAD], MFF 2014-2020, MFF 2021-2027 |
| International Organisations | European Union [EU] |
