Recovery Fund: Council greenlights updated national plans for France, Malta, Slovakia, and Ireland

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The European Council today adopted implementing decisions approving the amended recovery and resilience plans of France, Malta, Slovakia, and Ireland.

The amended plans of France, Malta, and Slovakia now include a new REPowerEU chapter. This will contribute to accelerating their transition towards clean energy, diversifying their energy supplies, and improving their energy efficiency.

Ireland’s plan was updated to request the adaptation of timelines for certain measures.

According to the Commission, the modifications put forward by those member states do not affect the relevance, effectiveness, efficiency, and coherence of their recovery and resilience plans.

France

On 20th April 2023, France submitted its amended recovery and resilience plan, which includes a new REPowerEU chapter. On 26th June, the Commission adopted its positive assessment and corresponding CID proposal. The amended plan places much greater emphasis on the green transition, devoting 49.5% (compared with 42.4% in the initial plan) of the available funds to measures that support climate objectives. The digital ambition of the French plan remains high, devoting 21.6% of its total envelope to supporting the digital transition.

France has requested the transfer to its recovery and resilience plan of its share of the Brexit Adjustment Reserve, €504 million that, added to France’s REPowerEU grant allocation of €2.3 billion, bring the amended envelope to €40.3 billion in grants.

Malta

On 26th April 2023, Malta submitted a request to amend its recovery and resilience plan, to which it also added a new REPowerEU chapter. On 26th June 2023, the Commission adopted its positive assessment. The amended plan has a stronger focus on the green transition, devoting 68.8% (up from 53.8% in the original plan) of the available funds to measures that support climate objectives.

Malta has requested to transfer a portion of its share of the Brexit Adjustment Reserve to its plan, amounting to €40 million. These funds, added to Malta’s REPowerEU grants allocation of €30 million, make the overall amended plan worth €328 million in grants.

Slovakia

On 26th April 2023, Slovakia submitted its request to amend its recovery and resilience plan, including a new REPowerEU chapter. On 26th June 2023, the Commission adopted its positive assessment. The amended plan has a significantly stronger focus on the green transition, dedicating 46% (up from 42% in the initial plan) of the available funds to measures that support climate objectives.

Slovakia has requested to transfer its share of the Brexit Adjustment Reserve, amounting to €36.3 million, to its plan. These funds, added to Slovakia’s REPowerEU grants allocation, amounting to €367 million, make the overall submitted amended plan worth €6.4 billion in grants.

Ireland

On 22nd May 2023, Ireland submitted a request to amend its recovery and resilience plan and on 26th June, the Commission adopted its positive assessment. The amended plan includes targeted amendments to two measures.

Ireland has not requested the addition of a REPowerEU chapter, so its allocation of €914.6 million in grants remains unchanged.

Background

The recovery and resilience facility (RRF) is the EU’s programme of large-scale financial support in response to the challenges the pandemic has posed to the European economy. It is the centrepiece of NextGenerationEU, a temporary recovery instrument that allows the Commission to raise funds to help repair the immediate economic and social damage caused by the COVID-19 pandemic.

To benefit from the facility’s €724 billion (in current prices), member states submit recovery and resilience plans (RRPs) to the Commission, setting out the reforms and investments they intend to implement by the end of 2026.

To date, all RRPs have been approved, 27 payment requests have been received from 18 member states, and €153 billion have been disbursed.

Regulation 2023/435 as regards REPowerEU chapters, in force since 1st March 2023, increases the RRF financial envelope by €20 billion in new grants. In addition, member states are able to voluntarily transfer up to €5.4 billion from the Brexit Adjustment Reserve to the RRF to finance REPowerEU measures. This comes on top of the existing transfer possibilities of 5% from the cohesion policy funds (up to €17.9 billion).

During 2023, it is expected that gradually each of the 27 member states will submit implementing decisions concerning amendments to their national recovery and resilience plans at least once, to access the new REPowerEU grants, to request available loans, or to take into account the updated RRF allocation.

Infographic - The REPowerEU plan explained

The EU is implementing an ambitious plan to reduce its dependence on Russian fossil fuels and accelerate the green transition, by saving energy, investing in renewables, and diversifying energy supplies.

The European Commission put forward the REPowerEU plan in May 2022. The plan builds on the implementation of the Fit for 55 proposals, which support the ambitious EU goal of achieving at least -55% net greenhouse gas emissions by 2030 and climate neutrality by 2050 in line with the European Green Deal.

The Recovery and Resilience Facility (RRF), set up in the aftermath of the COVID-19 crisis as a temporary instrument to mitigate the pandemic’s economic and social impact, is the main funding tool for the plan.

In December 2022, Council and Parliament negotiators reached a provisional agreement on a revision of the RRF regulation. The amendments enable member states to add specific REPowerEU chapters to their recovery and resilience plans to finance investment and reform measures in line with the objectives of the REPowerEU plan. The Council formally adopted the new rules in February 2023.

Technical Glossary

Recovery and Resilience Facility (RRF): The EU's programme of large-scale financial support in response to the challenges posed by the pandemic to the European economy.
REPowerEU: The EU plan to reduce dependence on Russian fossil fuels and accelerate the green transition by investing in renewables and diversifying energy supplies.
NextGenerationEU: A temporary recovery instrument that allows the Commission to raise funds to help repair the economic and social damage caused by the COVID-19 pandemic.
Brexit Adjustment Reserve: A reserve to address the consequences of the UK's exit from the EU.
Cohesion policy funds: Funds from the EU's cohesion policy.

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Themes covered:

Approval of amended recovery and resilience plans for France, Malta, Slovakia, and Ireland.
Inclusion of a new REPowerEU chapter in the amended plans to accelerate the green transition, diversify energy supplies, and improve energy efficiency.
Request for the adaptation of timelines for certain measures in Ireland's plan.
Commission's assessment that the modifications do not affect the relevance and effectiveness of the plans.
Details of each country's amended plan and funding allocations.
Background on the recovery and resilience facility (RRF) and NextGenerationEU.
The aim of the REPowerEU plan to reduce dependence on Russian fossil fuels and achieve climate neutrality.
The significance of the RRF as the main funding tool for the REPowerEU plan.
Expectations for member states to submit implementing decisions on amendments to their recovery and resilience plans.
Technical glossary explaining key terms such as RRF, REPowerEU, NextGenerationEU, Brexit Adjustment Reserve, and cohesion policy funds.

Source by Redazione