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08 March 2022

ECON: Recovery and Resilience tools to support EU countries through the Ukraine crisis


Energy independence, the negative effects of sanctions on Russia, and funds for Ukrainian refugees were among key issues discussed by MEPs and Commissioners on Monday evening.

MEPs from the Economic and Monetary Affairs and Budget committees discussed with Commissioners Dombrovskis and Gentiloni how to use the Recovery and Resilience Facility (RRF) to address new challenges brought about by the Russian invasion of Ukraine.


Many MEPs stressed that investments in energy independence are crucial in order to avoid contributing to Putin’s war machine. The Commissioners underlined that 41% of the RRF is dedicated to green investments and energy efficiency, which will improve the situation in the long term. In addition, member states can apply for an RRF loan, in which case they could amend their national plans to use them to respond immediately to the energy crisis. Finally, a communication on energy will be published by the Commission on 8 March, with solutions to increase the EU’s energy independence, such as storage facilities or diversified suppliers.


Given the potential prolonged negative consequences of economic sanctions and the long-term impact of an enormous influx of refugees, MEPs wanted to know which tools within the national recovery plans are suited to deal with this new crisis. Commissioners pointed to some national plans in which migration, refugees and asylum seekers have already been included, on top of the RRF’s social goals such as social protection or housing.


While some MEPs insisted that member states drafted their plans in a different situation and the plans should now be adjusted, others called for new mechanisms such as an energy independence facility or immediate support for Ukraine and its reconstruction.

Vice-President Dombrovskis insisted that the RRF, which was a response to the COVID-19 crisis, could not be a “silver bullet” to tackle all problems. There are different tools such as support for frontline member states, structural and cohesion funds and cooperation with other donors such as the International Monetary Fund (IMF), the US or the UK, he added. Finally, the Commissioners said that policy responses will be adjusted but due to a very high level of uncertainty, the Commission cannot announce any new tools at this stage.

ECON



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