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the European Commission approves France’s amended recovery and resilience plan, endowed with an envelope of 40.3 billion euros

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June 26, 2023
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the European Commission approves France’s amended recovery and resilience plan, endowed with an envelope of 40.3 billion euros
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The European Fee right now adopted a constructive evaluation of France’s amended restoration and resilience plan, which features a REPowerEU chapter. The plan, now endowed an envelope of almost 40.three billion euros within the type of subsidies (towards 39.four billion euros within the preliminary plan), contains 24 reforms and 73 investments.

France has withdraw an funding supporting regional funding funds and reduces 12 investmentsnotably within the areas of tradition, employment in R&D, skilled retraining by work-linked coaching applications and assist for the aeronautics sector. The modified plan offered by France additionally modifications 18 bars you aircraft preliminary.

These modifications take into consideration:

  • the downward revision of the utmost allocation of subsidies granted to France below the FRR, lowered from 39.four billion euros to 37.four million euros. This revision outcomes from the June 2022 update the distribution key for the subsidies allotted below the FRR and displays France’s financial ends in 2020 and 2021, that are comparatively higher than initially forecast; And
  • goal circumstances which have led to difficulties in implementation, together with the results of excessive inflation and provide chain disruptions.

France has additionally proposed enhance the monitoring of its public finance reform by including a brand new milestone associated to the evaluation of the standard of public spending. This may make it potential to report on the implementation of the brand new expenditure evaluate mechanism, a measure included within the preliminary plan, which entered into pressure in 2023. This mechanism ought to contribute to enhancing the standard and effectivity of public expenditure.

Importantly, France has added a REPowerEU chapter to his plan, with three information reforms, three new investments et elevated funding included within the preliminary plan for restoration and resilience. These measures will contribute to the achievement of the goals of the plan REPOWEREU aiming to make Europe unbiased of Russian fossil fuels effectively earlier than 2030, given Russia’s invasion of Ukraine.

France has requested the switch to its plan of its share of the Brexit adjustment reserve, in accordance with the REPowerEU regulation, or 504 million euros. These funds, added to France’s allocation of subsidies below REPowerEU of two.three billion euros, deliver the envelope of the modified plan to almost 40.three billion euros.

Further increase to France’s ecological transition

The modified plan focuses way more on the ecological transitiondevoting 49,5 % obtainable funds (in comparison with 42.four% within the preliminary plan) to measures aimed toward assist the achievement of local weather targets.

The chapter REPowerEU considerably advances France’s efforts in favor of the ecological transition, given that each one reforms and investments absolutely contribute to decreasing dependence on fossil fuels, by growing the power effectivity of buildings, the place the main focus is extra on deep renovation, supporting hydrogen-related initiatives and decarbonizing the commercial sector. The reforms included within the REPowerEU chapter may also speed up the deployment of renewable power initiatives by streamlined authorization procedures, cut back France’s power consumption with the “power effectivity plan” and enhance coherence and the coordination of public insurance policies within the discipline of ecological transition with the creation of the Common Secretariat for Ecological Planning.

Strengthening France’s digital readiness and social resilience

L’digital ambition of the plan of France stays unchangedon condition that the plan now devotes 21,6 % (in comparison with the earlier 21.four%) of its whole envelope to the digital transition. The amended plan continues to contribute considerably to the digital transition of enterprise and administration, in addition to to the development of the digital expertise of the workforce, college students and the inhabitants at giant, with anticipated lasting advantages. Particularly, the plan continues to contribute to the deployment of high-speed broadband all through the nation and helps the digitization of the well being system, in addition to analysis in key digital applied sciences (equivalent to cloud computing, 5G or cybersecurity).

The social dimension of the amended plan stays bold, because it continues to handle related social and employment challenges, equivalent to growing the variety of jobs, enhancing labor market integration and enhancing employee expertise. Particularly, the plan continues to assist the modernization and strengthening of public employment providers, in addition to investments within the coaching of employees (transition pathways, particular person studying account) and in favor of integration into the labor market (equivalent to apprenticeship contracts or employment subsidies for younger individuals and folks with disabilities). It additionally helps the transformation of the healthcare system and the renovation of hospitals and care properties.

Subsequent steps

The Council now has, in precept, 4 weeks to approve the Fee’s evaluation.

Council approval would permit France to use for pre-financing from REPowerEU funds of as much as €564 million. Underneath the Restoration and Resilience Facility, France has to date obtained €5.1 billion in pre-financing and a primary fee of €7.four billion in March 2022.

The Fee will authorize new disbursements when France has satisfactorily achieved the milestones and targets set out within the restoration and resilience plan, reflecting the progress made in implementing investments and reforms.

For extra data

Website dedicated to France’s recovery and resilience plan

Recovery and Resilience Facility: Questions and Answers

REPowerEU chapters and review of recovery plans

Regulation establishing the Recovery and Resilience Facility

Recovery and Resilience Facility website



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