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REPORT (COM(2020)0451 – C90149/2020 – 2020/0101(COD))

On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1303/2013 as regards exceptional additional resources and implementing arrangements under the Investment for growth and jobs goal to provide assistance for fostering crisis repair in the context of the COVID-19 pandemic and preparing a green, digital and resilient recovery of the economy (REACT-EU)

A-9-2020-0150

Committee on Regional Development · Rapporteur: Andrey Novakov, Constanze Krehl

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Parliament's amended version of the Commission proposal amending Regulation (EU) No 1303/2013 to add exceptional resources for crisis repair and recovery under REACT-EU. It makes EUR 58 272 800 000 in current prices available for 2020-2022, extendable to 2023 and 2024, and adds the European territorial cooperation goal. It sets a 50% pre-financing rate, a co-financing rate of up to 100%, and derogations from thematic concentration, ex ante conditionalities and the performance reserve. It requires Member States to involve local and regional authorities and civil society, and to use the resources for health, SMEs, jobs, social inclusion and the green and digital transition. It requires evaluations by 31 December 2024 or 2026 and Commission evaluation reports by 31 March 2025 and 31 March 2027.

Committee position. The Committee on Regional Development proposes that the proposal be adopted subject to its amendments, which add the European territorial cooperation goal, extend the resources to 2023 and 2024, and strengthen partnership and social and health measures.

Key points

  1. The amended regulation adds the European territorial cooperation goal to the scope of REACT-EU, alongside the Investment for growth and jobs goal.
  2. It makes available EUR 58 272 800 000 in current prices (EUR 54 806 498 104 in 2018 prices) for 2020, 2021 and 2022, and, where justified, 2023 and 2024.
  3. At least 95% of the additional resources go to the Investment for growth and jobs goal and between 3% and 5% to the European territorial cooperation goal.
  4. 0.35% of the additional resources is allocated to technical assistance at the Commission's initiative, focusing on Member States hit harder by the pandemic and with lower absorption rates.
  5. Member States may use at least 3% of the additional resources for the Fund for European Aid to the Most Deprived and may also increase support for the Youth Employment Initiative.
  6. Member States may use up to 5% of the additional resources for cross-border projects, using existing Interreg projects or creating new ones.
  7. The initial pre-financing is 50% of the additional resources allocated for 2020, and annual pre-financing for 2021, 2022, 2023 and 2024 may be up to 50%.
  8. A co-financing rate of up to 100% may be applied to priority axes supported by the additional resources.
  9. Member States are exempt from ex ante conditionalities, the performance reserve, thematic concentration and communication strategy requirements, but must carry out at least one evaluation by 31 December 2024 or 2026.
  10. For the ERDF, the resources primarily support health services and social infrastructure, SMEs and social economy enterprises, the digital and green transition, and regions dependent on tourism and culture.
  11. For the ESF, the resources primarily support job maintenance through short-time work schemes, support to self-employed and creative workers, job creation, social inclusion, education and training, and access to healthcare and social services.
  12. The Commission must provide evaluation reports on REACT-EU to Parliament and the Council by 31 March 2025 and 31 March 2027.

Who is affected

  • Member States and regions, which receive additional resources and must involve local and regional authorities and civil society in programming.
  • Small and medium-sized enterprises and social economy enterprises, which can receive working capital, investment and advisory support.
  • Workers, self-employed people, freelancers, artists and creative workers, who can benefit from short-time work schemes and job creation measures.
  • People at risk of poverty, children, the elderly, persons with disabilities, women, minorities and the homeless, who are targeted by social inclusion and poverty eradication measures.
  • Border regions, which may receive up to 5% of the additional resources for cross-border projects.

Figures and deadlines

  • EUR 58 272 800 000 in current prices (EUR 54 806 498 104 in 2018 prices): total additional resources for 2020-2022.
  • EUR 5 000 000 000 in current prices (EUR 4 805 843 906 in 2018 prices): additional resources for 2020.
  • EUR 42 434 400 000 in current prices (EUR 39 987 184 320 in 2018 prices): additional resources for 2021.
  • EUR 10 820 400 000 in current prices (EUR 9 996 674 058 in 2018 prices): additional resources for 2022.
  • EUR 18 000 000 in current prices (EUR 16 795 821 in 2018 prices): support for administrative expenditure.
  • 0.35%: share of additional resources allocated to technical assistance at the Commission's initiative.
  • At least 3% and up to 5%: share of additional resources for the European territorial cooperation goal.
  • 50%: initial pre-financing rate for 2020 and maximum annual pre-financing for 2021-2024.

Legal basis: Article 294(2) and Articles 177 and 322(1)(a) of the Treaty on the Functioning of the European Union.