A short presentation to understand further how the Coronavirus Response Investment Initiative will work
The EU announces €37 billion Coronavirus investment initiative.
Originally published here.
Corona Response Investment Initiative – how will it work?
In order to quickly direct €25 billion of European public investment to deal with the fallout of the Coronavirus crisis, the Commission will propose to relinquish this year its obligation to request refunding of unspent pre-financing for European structural and investment funds currently held by Member States.
The Member States will be required to use these amounts to speed up their investments under the structural funds. They will use this for the national co-financing they would normally have had to provide themselves in order to receive the next tranches of their structural fund envelopes. In view of the average co-financing rates across Member States, the €7.5 billion will be able to trigger the release and use of some €17.5 - €18 billion of structural funding across the EU.
This proposal can be implemented through a modification of the common provision regulation for the structural funds. The Commission will make this proposal to Council and Parliament this week. The national operational programmes would then be adapted, where necessary, to channel the funding towards areas such as short-term work measures, the health sector, labour market measures, and sectors particularly affected in the current circumstances.