On May 26, the EU proposed a major recovery plan to help repair the economic and social damage by the COVID pandemic, kick-start European recovery, and protect and create jobs. On July 21, EU leaders agreed on the plan and the financial framework for 2021-2027 to harness the full potential of the EU budget, “laying foundations for a modern and more sustainable Europe.
Investments will be channeled via a variety of instruments under three pillars:
- Supporting Member States to Recover and Emerge Stronger from the Crisis: recovery and resilience facility (E310b grants and E250b loans), assistance for cohesion and aid for the most deprived, the Just Transition Fund toward climate neutrality, rural area support in line with the European Green Deal;
- Kick-Starting the Economy and Helping Private Investment: solvency support instrument for viable companies to “help them through their green and digital transformation,” investments in sustainable infrastructure, a Strategic Investment Facility to develop strong and resilient independent value chains;
- Learning the Lessons of the Crisis and Addressing Europe’s Strategic Challenges: helping to equip Europe against future health threats, reinforcing the EU’s civil protection support capacity to respond to large-scale emergencies, increasing the Humanitarian Aid Instrument and the European Fund for Sustainable Development, more investment in young people, E22b for the Asylum and Migration Fund and the Integrated Border Management Fund.
