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Brussels, |
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REACT-EU
The Recovery assistance for cohesion and the territories of Europe (REACT-EU) extends the crisis-response and crisis-repair measures delivered through the coronavirus response investment initiative (CRII) and the coronavirus response investment initiative plus (CRII+)
and constitutes a bridge to the long-term recovery plan.
2021-2027 Budget: €50.62 billion under NextGenerationEU
and constitutes a bridge to the long-term recovery plan.
2021-2027 Budget: €50.62 billion under NextGenerationEU
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The Programme
Following the coronavirus pandemic, the EU adopted a comprehensive and ambitious recovery plan. In this regard, cohesion policy will play a key role in ensuring a balanced recovery, fostering convergence and making sure no one is left behind. REACT-EU (Recovery Assistance for Cohesion and the Territories of Europe) is one of the largest programmes under new instrument Next Generation EU and amounting to EUR 50.62 billion. This is not a new funding source, but a top-up to 2014-2020 European Regional Development Fund and European Social Fund allocations. Additional resources are available to Member States for 2021-2027 and period from the European Regional Development Fund (ERDF), the European Social Fund (ESF), the European Fund for Aid to the Most Deprived (FEAD) - as well as the Youth Employment Initiative (YEI). Technical assistance measures can also be financed. In order to provide swift support to regions, expenditure incurred from 1 February 2020 is eligible. The final date of eligibility for this expenditure is kept on 31 December 2023, in line with the 2014-2020 legislative framework. The REACT-EU Regulation was adopted on 23 December 2020.The programme supports investment projects that foster crisis-repair capacities and contribute to a green, digital and resilient recovery of the economy, including support for maintaining jobs, short-time work schemes and support for the self-employed. |
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It can also support job creation and youth employment measures, healthcare systems and the provision of working capital and investment support for small and medium-sized enterprises.
REACT-EU These can be used until end 2023, as was already the case for the original allocations.
It is delivered under shared management.
Climate objective
37% of the overall financial allocation of the Cohesion Fund are expected to contribute to climate objectives.
REACT-EU These can be used until end 2023, as was already the case for the original allocations.
It is delivered under shared management.
Climate objective
37% of the overall financial allocation of the Cohesion Fund are expected to contribute to climate objectives.
Thematic objective
The package will provide additional funding for existing of new dedicated programmes under the Investment for Growth and Job goal (IGJ) and for existing cross- border cooperation programmes under the European territorial cooperation goal.
From the ERDF, the additional resources shall primarily be used to support investment in products and services for health services and to provide support in the form of working capital or investment support to SMEs.
In order to create the right conditions for recovery, it should also be possible to support investments contributing to the transition towards a digital and green economy as well as in infrastructure providing basic services to citizens, or economic measures in the regions that are most dependent on sectors most affected by the crisis (e.g. tourism, culture, hospitality services etc.).
From the ESF, the additional resources shall primarily be used to support job maintenance, including through short-time work schemes and support to self-employed. The additional resources shall also support job creation, in particular for people in vulnerable situations, youth employment measures, skills development, in particular to support the twin green and digital transitions, and enhanced access to social services of general interest, including for children.
Implementing process
To provide the maximum possible assistance to the Member States, the implementing conditions for these additional resources are very generous and flexible.
- No national co-financing is required for this funding. That means that the EU will provide 100% support if Member States so wish.
- A high level of pre-financing is proposed to ensure that the lack of liquidity does not impose a bottleneck to the quick roll-out of this support. Member States will be encouraged to use this additional high pre-financing to provide advance payments to beneficiaries.
- This allocation can be spent in any category of region, the scope of support is wide and transfers among ERDF and ESF are always possible
- There is no ex-ante conditionality or thematic concentration
How the Cohesion Fund is managed
The React-EU is delivered under shared management. In shared management, both the European Commission and national authorities in Member States, such as ministries and public institutions, are in charge of running a particular programme. Around 70% of EU programmes are run this way.
The Member States' administrations (at national, regional and local level) choose which projects to finance and take responsibility for day-to-day management. Working together with the Member States, the Commission makes sure that the projects are successfully concluded, and the money is well spent.
The Common Provision Regulation
Local authorities call for projects adapted to their specific needs. It is governed by the Common Provisions Regulation. A common provisions regulation is established to govern 8 EU funds, like React-EU, whose delivery is shared with Member States and regions. Together, they represent a third of the EU budget.
The largest share of this budget is allocated to 5 common policy objectives:
Each fund, like REact-EU, has specific objectives defined in their respective Fund-specific regulations.
Local authorities call for projects adapted to their specific needs. It is governed by the Common Provisions Regulation. A common provisions regulation is established to govern 8 EU funds, like React-EU, whose delivery is shared with Member States and regions. Together, they represent a third of the EU budget.
The largest share of this budget is allocated to 5 common policy objectives:
- a more competitive and smarter Europe by promoting innovative and smart economic transformation and regional ICT connectivity;
- a greener, low-carbon transitioning towards a net zero carbon economy and resilient Europe by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility;
- a more connected Europe by enhancing mobility;
- a more social and inclusive Europe implementing the European Pillar of Social Rights;
- a Europe closer to citizens by fostering the sustainable and integrated development of all types of territories and local initiatives.
Each fund, like REact-EU, has specific objectives defined in their respective Fund-specific regulations.
Predecessor Programme
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