Europe | Recovery and Resilience Facility underway

The European authorities have approved the Regulation of the Recovery and Resilience Facility, the main instrument of the European Recovery Fund that will channel EUR 672.5 billion through grants and loans. This is an unprecedented response and a unique opportunity that Spain must seize.

Key points

• Key points:
• The objective is twofold: to help countries recover from the devastating effects of the pandemic; and to increase resilience and promote green and digital transition.
• Spain could receive EUR 70 billion in transfers and a similar amount via loans — 6.8% of GDP in 2019. Spain could start receiving this unprecedented financial support from June or July.
• Following the green light from Parliament and its approval by the Council, the instrument has entered into force. Moreover, by the end of April, countries must send the final versions of their national recovery and resilience plans to Brussels.
• The Commission will assess them within a maximum of two months, checking that investments and reforms focus on the six pillars of the Facility: green transition; digital transformation; economic cohesion and competitiveness; social and territorial cohesion; institutional response to crises; and preparation for crises.
• At least 37% of the funds must be used to meet climate objectives and 20% must be focused on digital transformation. Furthermore, the plans must contribute to address the challenges identified in f the country-specific recommendations set out in the European Semester.

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