11 billion EUR allocation of REACT-EU funds for 2022 now available

The European Commission has published the REACT-EU resource allocation for 2022. Around €11 billion (in current prices) is already available for cohesion policy programmes in the 27 Member States. Spain will receive around €3.6 billion next year. These funds are in addition to the almost €40 billion made available in 2021; almost €11 billion of this amount was allocated to Spain. Member States will be able to continue to implement recovery measures by increasing the resilience of health systems, businesses and support for the most vulnerable groups, while contributing to green and digital priorities for a smart, sustainable and cohesive recovery.

Elisa Ferreira, Commissioner for Cohesion and Reforms, said: "REACT-EU is a successful instrument to contribute to the recovery from the coronavirus crisis and deliver a green and digital just transition in the EU. EU countries have programmed almost all REACT-EU resources from 2021. We now urge Member States to swiftly submit their modifications to the programme for the 2022 tranche to the Commission for a timely uptake".

Employment and Social Rights Commissioner Nicolas Schmit added: "From supporting jobseekers in Belgium to funding care for the elderly in Bulgaria, REACT-EU has made a tangible contribution to the lives of Europeans since the start of the crisis. With €11 billion available by 2022, Member States will continue to make the most of this additional source of funding."

REACT-EU resources are released in two tranches to capture in depth the changing social and economic impact of the pandemic. The allocations are based on countries' GDP, as well as their total unemployment and youth unemployment rates. The breakdown also takes into account the impact of the coronavirus pandemic on Member States' economies based on statistical data as of 19 October 2021.

REACT-EU was the first instrument used under NextGenerationEU, the first payment of EUR 800 million was made on 28 June 2021. The rapid approval of the measures has allowed Member States to allocate €37 billion, with total payments reaching €6.1 billion. Of these approved measures, €23.3 billion will be used through the European Regional Development Fund, €12.8 billion through the European Social Fund and €0.5 billion through the European Aid Fund for the Most Deprived.

Concrete examples of EU solidarity

Here are some concrete examples of the support that citizens and businesses have received through REACT-EU:

• European Regional Development Fund (ERDF): in the Czech Republic, the ERDF is developing and modernising the "Brno Military Hospital". In Sweden, the Fund is helping small and medium-sized enterprises to recover from the crisis through digital development that directs them towards new markets. In France, the ERDF will help modernise the "Henry Becquerel Centre for the Fight against Cancer" to welcome more patients. In Spain, the ERDF supported the transition to a digital economy focusing on the digitisation of public services, including e-health and e-learning, as well as the transition to a green economy through electric mobility in public transport, improved energy efficiency and the use of renewable energy in public buildings.
• European Social Fund (ESF): In all Member States, people are receiving training, counselling and career guidance to increase their chances of keeping their job or finding a new one. In Belgium, for example, the ESF has helped people affected by the pandemic to develop their skills for a green and digital economy, to strengthen dual training and to prevent early school leaving. In Bulgaria, staff working on the frontline of the coronavirus pandemic have received a salary supplement, and older people and people with disabilities receive health and social services in their homes.
• Fund for European Aid to the Most Deprived Persons (FEAD): in Austria and Romania, for example, children in need have received school supplies. In Estonia, France, Luxembourg and other Member States, food aid, such as hot meals, and basic material aid, such as hygiene products, have been given to the most deprived people. In Latvia, FEAD money has also been used to provide masks and disinfectants.

Next steps

The Commission has recently started negotiations with Member States on the use of the 2022 tranche of REACT-EU. Member States will now be able to submit amendments to their programmes to the Commission. Once these modifications have been approved, Member States will have access to the new resources from 1 January 2022.

Context

REACT-EU is part of NextGenerationEU and provides EUR 50.6 billion of additional funding (at current prices) to cohesion policy programmes for the years 2021 and 2022, to be spent by the end of 2023. The objective of REACT-EU is to contribute to the economic and social recovery from the coronavirus crisis by promoting crisis repair and resilience of health systems, businesses and support for the most vulnerable groups. The funds also contribute to green and digital priorities for smart and sustainable recovery.

Around €40 billion is available under REACT-EU by 2021, of which 92% has already been allocated to investment programmes. The funds have mainly been used to bridge the gap between emergency measures taken at the beginning of the crisis and longer-term crisis repair.