Recovery and Resilience Facility
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Recovery and Resilience Facility

 

The Next Generation EU is a temporary recovery instrument to help economies recover in the wake of the COVID-19 pandemic.  The Recovery and Resilience Facility (RRF) is at the core of the Commission’s Next Generation EU instrument and aims to foster sustainability amongst European economies and to support the transition towards green and digital economies. The Facility will support reforms and investments undertaken by Member States through loans and grants.

The RRF was established by virtue of Regulation, EU 2021/41 which was adopted in February 2021. The regulatory framework establishes the parameters for the development of a Recovery and Resilience Plan (RRP) which Member States are required to prepare in order to be able to access EU funding under this instrument. This builds on the process undertaken during the past years as part of the National Reform Program initiative.

Malta is expected to receive circa €316 million in grants under the Facility. The use of RRF loans may be considered at a later stage.

The RRP should include a combination of reforms and investments to address all or at least a significant number of challenges identified in the Country-Specific Recommendations (CSRs) for Malta in 2019 and 2020, and which arise as part of the European Semester process. Member States are encouraged to align the plan with the Commission’s 7 EU ‘Flagship Initiatives’ to address common EU challenges. In the plan at least 37% of the total allocation must contribute to climate change and at least 20% to digital initiatives.

In the run up to the development of Malta’s EU Funded plans and programmes for the 2021-2027 period, a consultation process was launched in order to identify development challenges and investment needs amongst others. Apart from engaging external consultants in a number of specialised areas, meetings with relevant stakeholders were also held on various topics including economic growth, agriculture and rural development, fisheries and maritime, digital and green transitions, environment, transport, social cohesion, education and health as well as Gozo’s territorial needs.

The outcomes of such consultations provided important insights on Malta’s socio-economic and environmental development, including the identification of reforms and investments for Malta’s RRP. Malta’s plan identifies the following 6 main themes for reforms and investments that will be supported through grants under the plan:​

  • Addressing climate neutrality through enhanced energy efficiency, clean energy and a circular economy.
  • ​​ Addressing Carbon-Neutrality by decarbonising transport.
  • Fostering a digital, smart and resilient economy.
  • Strengthening the resilience of the health system.
  • Enhancing quality education and fostering socio-economic sustainability.
  • Strengthening the institutional framework.

In 2021 bilateral meetings were also held with different stakeholders with particular focus on the RRP, whilst discussions between Government and the European Commission on the plan have also been ongoing. The main parameters of the RRP were discussed with the Malta Council for Economic and Social Development (MCESD). Such consultation process is in line with the procedures adopted in previous years in relation to the preparation of the National Reform Program as part of the European Semester process.

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