Answer to Written Question: National recovery plans

(Source: European Parliament)

EN

E-001390/2021

Answer given by Mr Gentiloni

on behalf of the European Commission

(31.5.2021)

The Recovery and Resilience Facility (RRF)[1] aims at mitigating the economic and social impact of the pandemic, making EU economies more sustainable, inclusive, resilient, facilitating green and digital transitions. The RRF Regulation sets out assessment criteria for the Recovery and Resilience Plans it can fund. The plans are expected to address all or a significant subset of challenges identified in the country-specific recommendations, strengthen growth potential, job creation and resilience, and foster the green and digital transitions.

To support vulnerable companies, the EU unlocked EUR 1 billion from its European Fund for Strategic Investments (EFSI) to incentivise banks and lenders to provide liquidity to more than 100,000 European small businesses, recognising their survival is crucial to the EU’s recovery (SMEs representing 99% of all EU businesses)[2].

The Commission adopted the Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the COVID-19 outbreak by means of grants or subsidised loans at favorable interest rates, and to provide capital for firms where needed, while limiting the negative effects on the level playing field in the internal market[3].

To help workers, the EU established the temporary Support to mitigate Unemployment Risks in an Emergency (SURE)[4]. It provides financial assistance of up to EUR 100 billion to Member States in the form of loans granted on favorable terms for the financing of national short-time work schemes and measures aimed at mitigating the risk of unemployment and loss of income, as well as for the financing of some health-related measures. EUR 75.5 billion has already been disbursed to 17 Member States.


[1] See also: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020PC0408

[2] https://www.eif4smes.com/

[3] The information can be found here: https://ec.europa.eu/competition/state_aid/what_is_new/covid_19.html

[4] See also https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/financial-assistance-eu/funding-mechanisms-and-facilities/sure_en

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