EU ministers agree on €672.5b Recovery and Resilience Facility

The European Union (EU) member states' finance and economic affairs ministers reached a political agreement on the Recovery and Resilience Facility (RRF) on Tuesday, reported Xinhua.

The RRF is the main instrument under the 750-billion-euro coronavirus crisis recovery package negotiated by EU leaders at their meeting in July.

The aim of the 672.5-billion-euro RRF is to provide large-scale financial support for reforms and investments undertaken by the member states, to mitigate the economic and social impact of the COVID-19 pandemic and to make the EU economies more sustainable, resilient and better prepared for the challenges posed by the green and digital transitions, according to a press release issued after the ministers' video conference.

The RRF will offer a mix of grants (312.5 billion euros) and loans (360 billion euros) to the EU member states, according to the press release.

At a press conference, Valdis Dombrovskis, the European Commission's Executive Vice President, said: "The coronavirus continues to affect all our lives and our economies, with many cities and regions again stepping up restrictions. We have taken a big step forward today in supporting EU countries at this difficult time."

The member states will be able to submit their Recovery and Resilience Plans informally as of Oct. 15, Dombrovskis said.

The ministers also exchanged views on a new action plan on the Capital Markets Union and on the lessons learned from the European Semester 2020, the annual cycle of economic and fiscal policy coordination.