Retroactive funding for Coronavirus recovery projects

"Regions and towns in Europe will get additional resources at a 100% EU co-financing rate for more recovery measures over an even longer period of time", explained Andrey Novakov MEP, EPP Group Spokesman in the European Parliament's Committee on Regional Development, ahead of today's Parliamentary debate on the so-called REACT-EU Programme.

The sectoral programme, under the Recovery Package, addresses the economic fallout of the COVID-19 pandemic in Europe's regions. It will provide €47.5 billion over the coming years. Parliament will vote on the law setting up the programme later this evening.

"The EU Summit agreement on the long-term budget was the missing piece of the puzzle. The European Parliament extended the eligibility window to the period of 1 February 2020 to 31 December 2023, because relevant recovery measures took place in the past and will be taking place in the years to come. Being able to finance measures retroactively and to provide 100% EU co-financing, REACT-EU will ease the pressure on central budgets and government deficits", stressed Novakov.

"REACT-EU is a textbook example of cohesion policy being part of the recovery after the pandemic. Businesses and the healthcare sector have taken a hard hit over these last months and this funding will be a breath of fresh air”, said Novakov.

REACT-EU will support SMEs in difficulty - including in the tourism and culture sectors - freelancers, entrepreneurs, short-time work schemes for employees and the self-employed, healthcare services’ preparedness and coordination, and funding for digital transition such as e-education projects.