| Author (Corporate) | Council of the European Union, European Parliament |
|---|---|
| Series Title | Official Journal of the European Union |
| Series Details | L 57, Pages 17-75 |
| Publication Date | 18/02/2021 |
| Content Type | Blog & Commentary, Legislation, News, Policy-making |
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Summary: Regulation (EU) 2021/241 - formally signed by the co-legislators on 12 February 2021 - setting up the Recovery and Resilience Facility (RRF). Further information: The COVID-19 (coronavirus) pandemic affected the economic outlook for every Member State of the European Union (EU). However, different levels of national resilience and response to the shock across the EU raise the potential for distortion of the level playing field of the Single Market that can lead to increasing economic divergences and aggravate long-term growth challenges. Sustainable recovery requires strategic policy orientation. It includes enabling the twin transitions towards a greener and digital society while ensuring the strategic autonomy of the EU. It is essential to support investment and enable reforms while responding to major economic and social challenges. It is crucial that recovery strategies put in place by Member States integrate the challenges regarding green and digital transitions. The RRF aims to offer financial support for those public investments and reforms. It is seen as key programme of the EU Recovery Instrument (NextGenerationEU), in the framework of the revised Multiannual Financial Framework (MFF) for 2021-2027. It includes the provision of non-repayable financial support and loans to Member States to support public investments and reforms, as set out in their National Recovery and Resilience Plans (NRRPs). Loans complement non-repayable support and are to be proposed in exchange of additional reforms and investments beyond those that benefit from the non-repayable financial support. This proposal takes as a basis and replaces a previous proposal on establishing a Reform Support Programme, which is withdrawn. It makes appropriate changes to it to reflect the revised objectives, and the adjusted delivery mode of the new instrument. The proposal establishing a governance framework for the Budgetary Instrument for Convergence and Competitiveness for the Euro area (BICC) is also withdrawn, as a result. The initiative was tabled by the European Commission on 28 May 2020. The Council of the European Union adopted its general approach concerning this proposal on 9 October 2020. The European Parliament's relevant committees adopted a negotiating position on 9 November. An informal agreement between the co-legislators concerning this initiative was reached on 18 December. This was formally endorsed by the Parliament's plenary on 10 February 2021, and on the following day by the Council. The Act was signed on 12 February 2021 and published in the Official Journal on 18 February 2021. The plenary of the European Parliament adopted on 20 May 2021 a Resolution urging the European Commission to send MEPs all relevant information on national recovery efforts, for the sake of democratic oversight as established in the RRF Regulation. |
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| Source Link | Link to Main Source http://data.europa.eu/eli/reg/2021/241/oj |
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| Subject Categories | Economic and Financial Affairs |
| Subject Tags | Economic Governance | Situation, EU Budget, Multiannual Financial Framework [MFF] |
| Keywords | MFF 2021-2027 |
| International Organisations | European Union [EU] |
