The European Commission values the Recovery and Resilience of Europe. As a result, the 2021 Annual Sustainable Growth Strategy has launched the next cycle of the European semester by setting out a strategic guidance plan.
The plan is aiming to pursue the new growth strategy that has been set by the EU based on the European Green Deal and the goal to achieve competitive sustainability.
The Recovery and Resilience Facility is a central pillar for the NextGerenationEU scheme, the emergency temporary recovery instrument that was created as a solution to the massive economic and social damage brought by the pandemic.
On average, the European Council will release a budget of €672.5 million in loans and grants aiming to support the implementation of investment and reforms as well as projects aiming to bring sustainable and long-lasting solutions to the current problem.
Recovery and Resilience plans
All Member States can prepare their recovery and resilience plans aiming to set out coherent packages of reforms as well as public investments. The goal is for all of them to be implemented by the year 2026 to support the Resilience and Recovery Facility.
The challenge for the EU Member States will be to perfectly demonstrate how their plans are going to be addressing the problems at hand, what kinds of solutions they will bring, and most importantly in what way will those solutions promote sustainability.
It is important to note that the Member States will also need to address the challenges faced by the transition towards a green and digital environment.
How will the Commission assess the recovery and resilience plans?
The Commission will assess the recovery and resilience plans based on transparent criteria. In particular, the Commission assessment will consider whether the investments and reforms set out in the plans:
- contribute to effectively addressing challenges identified in the relevant country-specific recommendations;
- contain measures that effectively contribute to the green and the digital transitions; and
- contribute to strengthening the growth potential, job creation, and economic and social resilience of the Member State.
The Commission’s assessment of the plans will be approved by the Council by means of an implementing decision following a proposal from the Commission.
Supporting Green and Digital Transition
Europe has set a goal. To achieve complete climate neutrality by the year 2050. Another important goal is to reduce greenhouse gas emissions until 2030. With the Recovery and Resilience Facility, the EU is now supporting these goals even more.
The Facility will give the EU Member States the option of creating specified reforms to address climate transition. Moreover, climate transition will be considered a priority which means that plans will need to strongly focus on the climate transition issue.
Regarding the digital transition, the EU Member States should mostly focus on ensuring the high-level ambition that needs to follow the reforms and investments. To ensure effective implementation, the Commission proposes that each recovery and resilience plan should include a minimum level of 20% of expenditure related to digital.
For more information on the Recovery and Resilience Facility and Plan you can stay tuned with the EU’s official website.