On 27 May 2020, the President of the European Commission, Ursula von der Leyen, presented the backbone of the recovery plan, which will be a new instrument for recovery and resilience. The instrument will provide financial support for investments and reforms that are crucial for a lasting recovery, improving the economic and social resilience of Member States, and supporting green and digital transitions. It will be available to all Member States, but support will be targeted at those most affected and where resilience needs are greatest. It will help them combat growing disparities between Member States and prepare economies for the future. The Instrument for Recovery and Resilience will be a key part of the European Semester. Member States will draw up recovery and resilience plans under the National Reform Programs. A budget of 560 billion euros from the EU's Next Generation program has been proposed. It will be based on a grant instrument worth up to € 310 billion and lending up to a total of € 250 billion.
As announced by President Ursula von der Leyen, the Commission is proposing a new REACT-EU initiative to increase cohesion support to Member States to make their economies more resilient and sustainable in the recovery phase. Programs such as the European Social Fund and the European Aid Fund for the Most Deprived can be further increased by using part of the available funds in the amount of 55 billion euros. In addition to responding directly to the crisis, cohesion policy will be key to ensuring a balanced long-term recovery, avoiding asymmetries and growth disparities between and within Member States. The Commission is therefore adapting its proposals to future cohesion and social policy programs to provide even greater support for investment in recovery, for example in the resilience of national health systems, in sectors such as tourism and culture, to support small and medium-sized enterprises, youth employment measures, education and skills development and measures to combat child poverty.
The Commission is also strengthening the Fair Transition Mechanism, a key element of the European Green Agenda, to ensure social justice in the transition to a climate-neutral economy in the most vulnerable regions with high coal consumption and high carbon emissions. For more details, read the Questions and Answers on the REACT-EU initiative, cohesion policy after 2020 and the European Social Fund +, informative articles on cohesion policy and social funds, press release on the public loan instrument to support green investments in cooperation with the European investment bank and questions and answers about the mechanism of fair transition.