Recovery and Resilience Facility: Council presidency and Parliament reach provisional agreement

It will support public investments and reforms in member states, helping them to address the economic and social impact of the COVID-19 pandemic, as well as the challenges posed by the green and digital transitions.

The Council adopted its position on the facility in October, building on the political guidance provided by the EU leaders on 17-21 July 2020 as part of the negotiations on the Multiannual Financial Framework and the recovery package.

Olaf Scholz, Germany's Federal Minister for Finance and Vice Chancellor:

The provisional agreement reached with the Parliament covers a number of elements, including the scope of the facility, horizontal principles, general eligibility rules for the national recovery and resilience plans, the elements to be provided in each plan and the assessment criteria used by the Commission. At least 37% of each plan’s allocation has to support the green transition and at least 20% the digital transformation. Support will be closely linked to the recommendations of the European Semester, which identify central challenges for each member state to address to strengthen competitiveness as well as social and economic cohesion.

The governance arrangements have been confirmed as negotiated by the EU leaders. In addition, the European Parliament will be more closely involved throughout the lifespan of the implementation of the facility, including through a Recovery and Resilience Dialogue.

The provisional agreement will now be submitted to both institutions for endorsement.