Coronavirus Response Investment Initiative

General objective: To use all the means at our disposal to fight against the coronavirus and its economic spin-offs;

Cohesion policy funds available and unused: bringing forward expenditure and redirecting the ERDF, ESF, Cohesion Fund and EGF (Fisheries Fund) towards the fight against coronavirus;

• The immediate provision of cash is what matters now to save lives and support viable businesses ;
• Adapt the eligibility rules to ensure a high and relevant impact;
• Flexible application of rules - commit funds in the coming weeks to deal with paperwork later;
• Administrative support to Member States;

How w ill it work?

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The EU will direct €37 billion to this in the coming weeks: 

• About €8 billion of liquidity to be made available immediately to Member States for their national contributions under cohesion policy projects.  This is coming from the pre-financing advance that Member States receive as part of the normal Structural Investment Fund advances.  This proposal waives the requirement in 2020 to reimburse the unused pre-finacing back to Brussels and instead use it immediately on a wider range of eligible actions immediately under new schemes or existing projects;
   
• What is pre-financing?  Usually, the EC uses this accounting approach with all 28 Member States each of the Structural Investments Funds are provided as a cash advance to the Member States. If the recipient Member State does not incur eligible expenditures under its various programmes and projects due to reduced claims or ineligible activities there is normally an obligation on that Member State to return the pre-financing advance to the EU institution or body.
   
• If this initial 8 billion is fully used, this will be generate an addition €29 billion of draw down from the EU budget money from the European Structural and Investment Funds; no fresh Member State money will be needed for the €37 billion support. 

Three Priorities – a much wider scope of eligibility 

• Priority 1 - Corona-relevant health expenditure in any part of the Member States including hospital equipment, breathing ventilators and masks;
• Priority 2 - Support to SMEs working capital
• Priority 3 - Short-term employment schemes