EU finance ministers reached agreement on Recovery and Resilience Facility

The instrument will offer €312.5bn grants and €360bn loans to the EU countries for mitigating the impact of the Covid-19

Photo: EU Olaf Scholz.

At a videoconference on Tuesday, the EU ministers of economics and finance reached a political agreement on the Recovery and Resilience Facility, the main instrument of the €750bn recovery package negotiated by EU leaders in July.

The aim of the facility that will offer a mix of grants - €312.5bn and loans - €360bn to Member States, is to provide support for reforms and investments undertaken by EU countries, to mitigate the economic and social impact of the Covid-19 pandemic and to make the EU economies more sustainable, resilient and better prepared for the challenges posed by the green and digital transitions.

The proposal for a regulation establishing this instrument has been discussed intensively within the Council during the past few months. Ministers exchanged views on the outstanding issues, including governance, control systems and the challenges to be addressed in the recovery and resilience plans to be submitted by Member States with a view to receiving support.

The political agreement reached will be formalised by the Permanent Representatives Committee as a mandate for negotiations with the European Parliament. The Council's position will guide the presidency in negotiations with the Parliament, which the presidency aims to conclude as soon as possible.

As the presidency we are very pleased that we reached an agreement on the Recovery and Resilience Facility among the member states, Olaf Scholz, Germany’s Federal Minister of Finance and Vice Chancellor, stressed. The facility lies at the heart of our efforts to tackle the fall-out of the Covid-19 crisis, he said mentioning that it will help Member States recover from the crisis while investing in the green and digital transitions and preparing their economies for the future.

Saying that there is no time to lose, Minister Scholz explained that the Presidency hopes the legislative process with the Parliament would conclude as soon as possible.

 

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