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.