EU cohesion policy at the forefront of economic recovery: € 34 billion approved for regions and cities in just 4 months – Regional policy

REACT-EU EUR 34.1 billion has been approved under this framework and EUR 3.5 billion has already been disbursed in four months alone, making it the first NextGenerationEU the instrument from which payments are made for the economic recovery of the Member States.

Eliza, Commissioner for Cohesion and Reform Ferreira: “Cohesion policy has been at the forefront of the pandemic emergency and is now once again one of the key areas of EU economic recovery policy. Cohesion policy instruments have provided citizens with the health care they need and enabled small businesses to survive, while making a decisive contribution to the EU-wide transition to a digital and green economy. I am glad that these achievements are also increasingly being recognized by the people of Europe. Territories and people must continue to be at the heart of Member States’ recovery efforts. “

Commissioner for Labor and Social Rights Nicolas Schmidt: “Every euro spent through the ESF is invested in people’s needs. The EU Structural Funds and the Cohesion Fund, in particular the REACT-EU program, are driving recovery from the pandemic. Thanks to EU support, companies were able to retain workers and food parcels were delivered to the people who needed it most. It is the EU’s solidarity in action, and I am pleased that this investment in people and economic recovery is paying off. “

In 4 months alone, 86% of those available for this year have been approved REACT-EU resources. € 21.7 billion mobilized from European Regional Development Fund, 12 billion euros – from European Social Fund and EUR 410 million from European Support Fund for the Most Deprived.

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REACT-EU funding complements Investment initiatives in response to the coronavirus (the book) package, which mobilized more than € 21 billion in response to the urgent economic and social needs of the sectors most affected by the coronavirus pandemic.

Concrete examples of EU solidarity

Here are some specific examples of the support that people and businesses have received with REACT-EU through.

  • European Regional Development Fund (ERDF). In Portugal, the ERDF has supported the purchase of vaccines for more than half of the population. In Slovenia, the ERDF has financed the installation of new IT systems in the healthcare sector. In the Czech Republic, the ERDF finances the purchase of new medical equipment, helping regions to become more resilient to future health crises. In Sweden, the ERDF helps small businesses manage the digital transformation.
  • European Social Fund (ESF). In all Member States, people have received training, counseling and career development support, which increases their chances of keeping a job or finding a new job. In Italy, companies received recruitment subsidies to support the employment of women and young people. The ESF also supported financial advisory services and accommodation for the homeless.
  • European Fund for the Most Deprived (EAFRD). For example, in Austria and Romania, children in need have received school supplies. In Estonia, France, Luxembourg and other Member States, food aid, such as hot meals, and basic material assistance, such as hygiene products, were provided to the most deprived people.

Awareness of EU-funded projects is growing

Latest Eurobarometer surveys The results show that the support of cohesion policy for economic recovery has been very well noticed by the population and 69% of respondents are aware of cohesion policy initiatives to address the negative effects of the pandemic.

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Overall, the report shows that general awareness of EU-funded projects is growing. The EU average is currently 41%. That’s 7 percentage points more than 10 years ago. Of those respondents who are aware of EU-funded projects, 80% believe that these projects have a positive effect on the regions.

General Information

NextGenerationEU is a temporary recovery instrument worth around € 800 billion in real terms, aimed at supporting Europe ‘s recovery from the coronavirus pandemic and helping to build a greener, more digital and resilient Europe.

REACT-EUwhich is part of the tool NextGenerationEU, will provide additional funding of € 50.6 billion (in current prices) for cohesion policy programs between 2021 and 2022. The measures aim to support labor market sustainability, employment, SMEs and low-income families, as well as to lay the foundations for a green and digital transition and sustainable socio-economic recovery. In order to provide the greatest possible assistance to the Member States, the conditions for implementing these additional resources are very generous and flexible. Among other things, this funding does not require national co-financing, which means that the EU can provide 100% support if Member States so wish. No REACT-EU expenditure may be financed retroactively from 1 February 2020 to 31 December 2023.

Following the adoption by the Commission of the new Own Resources Decision, which allows the Commission to borrow on the financial markets, REACT-EU Performed on June 28 first payment NextGenerationEU framework.

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