Proposal for a COUNCIL REGULATION establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 pandemic
Date: 2020-05-28
Institutions: European Commission, Secretariat-General
Subjects: EU Member State, EU aid, EU budget, EU financial instrument, economic and social cohesion, economic recovery, epidemic, financial aid, infectious disease

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   EUROPEAN COMMISSION  Brussels, 28.5.2020  COM(2020) 441 final 2020/0111 (NLE)  Proposal for a COUNCIL REGULATION establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 pandemic  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The COVID-19 pandemic constitutes a widespread and severe public health crisis. It severely 
affects  citizens,  societies  and  economies  worldwide.  The  extent  of  the  health  crisis  and  the 
policy  responses  taken  to  control  it  are  unprecedented.  As  a  result,  the  depth  of  its  socio-
economic impact is extraordinarily uncertain. Already at this stage, it is certain that it presents 
unprecedented  and  acute  challenges  for  the  financial  and  economic  systems  of  Member 
States. According to the Commission’s spring economic forecasts1, the EU GDP is forecast to 
contract by about 7.5 % this year - far deeper than during the global financial crisis in 2009 - 
and to rebound by only 6% in 2021, while the EU unemployment rate is set to rise to 9% in 
2020, with a risk of rising poverty and inequality. 

In  response,  Member  States  have  adopted  exceptional  discretionary  economic  and  financial 
measures. Together with the effect of so-called “automatic stabilizers”, i.e. payments foreseen 
under  unemployment  insurance  and  social  security  systems  combined  with  loss  in  tax 
revenue, those measures have a considerable bearing on their public finances with aggregate 
general government deficit surging from 0.6% of GDP in 2019 to 8.5% of GDP in both the 
euro area and the EU this year.  

The shock to the EU economy is symmetric in that the pandemic has  hit all Member States, 
however,  the  impact  of  the  pandemic  differs  considerably  between  Member  States,  as  does 
their  ability  to  absorb  the  economic  and  fiscal  shock  and  respond  to  it,  depending  on  the 
specific economic structures and initial conditions of the Member States. As a result, there is a 
risk that the crisis will widen disparities within the Union threatening the collective economic 
and social resilience.  

The Union has acted rapidly to deliver a coordinated and powerful collective response to the 
social and economic consequences of the crisis, within the limits of the current Multiannual 
Financial  Framework  expiring  in  2020.  That  response  complements  discretionary  economic 
and financial measures taken by Member States. 

The crisis could result in lasting damage to the Union’s economic tissue unless it is met with a 
commensurate short and medium term policy response at the level of the Union.  

A comprehensive plan for European recovery will need massive public and private investment 
at European level to set the Union firmly on the path to a sustainable and resilient recovery, 
creating high-quality jobs and and repairing the immediate damage brought by the COVID-19 
pandemic whilst supporting the Union’s green and digital priorities. To provide the financing 
for  the  proposed  act,  the  Commission  proposes  an  amendment  to  the  [ORD]  which  would 
authorise the Union to borrow temporarily and exceptionally an amount of EUR 750 billion in 
2018  prices,  to  increase  the  own  resources  ceiling  to  accommodate  the  liabilities  and 
contingent  liabilities  for  loans  to  the  Member  States.  The  proposed  act  determines  the 
allocation  of  funds  to  different  Union  programmes  in  line  with  the  strategy  set  out  in  the 
European Union Recovery Plan.  

1 

European Economic Forecast, Institutional Paper 125. May 2020. 

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EUR  500  billion  in  2018  prices  will  be  spent  for  non-repayable  support,  repayable  support 
through  financial  instruments  or  for  provisioning  for  budgetary  guarantees  and  related 
expenditure.  

EUR 250 billion in 2018 prices will be used to provide loans to Member States. The Union 
will bear contingent liability in the form of a guarantee for those loans until they are repaid.  

Article 3 fixes the maximum amount that can finance the Instrument. The uses to which the 
funds can be put are also clearly prescribed in Article 3, describing the recipient programmes, 
as  well  as  the  nature  of  the  support  (grants,  loans  and  guarantees).  In  Articles  2  and  4,  this 
Regulation also strictly limits the scope and the time within which the funds can be used. This 
excludes  that  the  European  Union  Recovery  Instrument  can  be  used  for  any  purpose  other 
than tackling the direct economic and social consequences of this crisis. 

• 

Consistency with other Union policies 

The  European  Union  Recovery  Instrument  provides  funding  for  measures  and  actions  to  be 
carried  out as  outlined  in  the  European  Union  Recovery  Plan.  The  resources  raised  through 
the  issuance  will  be  used  for  Union´s  programmes  under  the  next  multi-annual  financial 
framework in the following areas: 

  Providing  support  in  the  form  of  grants  and  loans  to  implement  Member  State  recovery 

and resilience plans under the Recovery and Resilience Facility; 

  Providing  new  investment  support  under  existing  and  proposed  budgetary  guarantees 
(EFSI/InvestEU)  for  inter  alia  (1)  crisis-impacted  but  viable  companies  to  emerge  from 
the  crisis,  in  particular  to  accelerate  the  twin  green  and  digital  transition;  (2)  targeted 
support  to  projects  of  European  strategic  interest  for  internal  market  supply  chains  to 
develop the EU’s strategic autonomy in key sectors and capacities; 

  Enhanced  support  to  regions  and  sectors  hit  by  the  crisis  through  reinforced  cohesion 

policy measures; 

  Supporting research and innovation  in response to the COVID-19 pandemic; 
  Enhancing the level of crisis preparedness and improving the strategic resilience of Union 

health care systems;  

  Mitigating the impact of the COVID-19 pandemic on the just transition towards a green 

economy in territories; 

  Supporting  measures  to  address  the  impact  of  the  COVID-19  pandemic  on  rural 

development; 

  Supporting partner countries, in particular in the Western Balkans, the Neighbourhood and 
Africa,  in  their  efforts  to  fight  and  recover  from  the  impact  of  the  pandemic  and  to 
strengthen their resilience.  

The actions and measures will be carried out in accordance with the conditions laid down in 
the  basic  acts  establishing  the  policy  instruments.  This  is  why  the  Commission  presents  in 
parallel the necessary legislative proposals ensuring that those policy instruments can receive 
external assigned revenues resulting from the implementation of this Regulation.   

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 122 of the Treaty on the Functioning of the European Union foresees the possibility of 
measures,  decided  in  a  spirit  of  solidarity  between  Member  States,  appropriate  to  the 
economic  situation.  The  present  situation  is  unprecedented.  It  is  characterized  by  severe 
difficulties caused by exceptional occurrences beyond the Member States’ control. Therefore, 

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it is appropriate to adopt under Article 122 TFEU exceptional temporary measures to support 
recovery and resilience across the Union.  

• 

Subsidiarity (for non-exclusive competence)  

The  objectives  pursued  by  this  instrument  cannot  be  sufficiently  achieved  by  the  Member 
States  individually  because  of  the  scale  of  the  measures  which  need  to  be  taken.  The 
European  Union  Recovery  Instrument  enables  the  Union  to  complement  economic  and 
financial measures of Member States, in particular in the form of “automatic stabilizers” and 
discretionary economic and financial measures, by a rapid and targeted significant increase in 
discretionary spending.  

Such  complementary  mobilisation  of  funding  ensures  that  the  internal  market  is  not 
undermined by disparities in the ability of Member States to mobilise funding, and provides in 
a spirit of solidarity funding also in those Member States where fiscal space for discretionary 
spending  is  limited.  In  addition,  it  ensures  that  spending  is  carried  out  based  on  a  coherent 
economic strategy coordinated between the Member States. 

Only such a concerted action motivated by a spirit of solidarity between Member States in a 
time  of  crisis  can  ensure  that  proceeds  are  mobilised  in  sufficient  resources  to  generate 
effective interventions by the Union in the most affected areas or sectors.  

• 

Proportionality 

The financing from the European Union Recovery Instrument in the volumes required is due 
to the unprecedented circumstances in which the Union finds itself. The Recovery Instrument 
is  clearly  circumscribed  in  terms  of  duration  and  use.  This  ensures  that  its  use  is  strictly 
limited  to  tackling  the  impact  of  this  crisis  on  a  scale  commensurate  to  the  impact  of  this 
crisis.  The  financing  would  be  geared  towards  the  need  to  provide  immediate  and  forceful 
support for an economic recovery.  

• 

Choice of the instrument 

The  Commission  deems  suitable  to  act  by  way  of  Regulation  because  of  its  direct  and 
immediate applicability and its general scope.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

Due to the urgency to prepare the proposal so that it can be swiftly adopted by the Council, a 
stakeholder consultation could not be carried out. 

• 

Collection and use of expertise 

Not relevant 

• 

Impact assessment 

Due to the urgent nature of the proposal, no impact assessment was carried out. 

• 

Regulatory fitness and simplification 

Not relevant 

• 

Fundamental rights 

Not relevant 

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4. 

BUDGETARY IMPLICATIONS 

The proposed Regulation will provide financial support from external assigned revenue from 
the  Union’s  borrowing  authorised  under  Article  3b  of  [ORD]  for  non-repayable  support, 
repayable support through financial instruments and for provisioning for budgetary guarantees 
and  related  expenditure.  This  entails  the  need  to  foresee  commitment  and  payment 
appropriations  to  cover  amounts  falling  due  for  the  borrowing  (for  coupon  payments  and 
redemptions at maturity). No repayments from the EU budget are envisaged before 2028. The 
necessary  appropriation  to  cover  potential  coupon  payments  over  the  period  2021-2027  are 
compatible with the Commission proposal for the Multiannual Financial Framework, and in 
particular  Heading  2  Cohesion  and  Values  (excluding  ‘Economic,  Social  and  Territorial 
Cohesion’).  Future  Multiannual  Financial  Frameworks  will  need  to  provide  the  necessary 
appropriations to cover coupon payments and redemptions at maturity. 

Loans  will  be  repaid  by  the  beneficiary  Member  States  and  the  Union  will  bear  only 
contingent liability compatible with the specific own resources ceiling.  

An indicative planning of the expected revenue as well as related expenditure is provided in 
the Legislative Financial Statement. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

Maximum  transparency  and  proper  monitoring  of  the  use  of  the  EU  financial  resources  are 
required. Reporting obligations for the Member States and the Commission will apply. 

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2020/0111 (NLE) 

Proposal for a 

COUNCIL REGULATION 

establishing a European Union Recovery Instrument to support the recovery in the 
aftermath of the COVID-19 pandemic 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 122 thereof, 

Having regard to the proposal from the European Commission, 

Whereas:  

(1) 

(2) 

(3) 

(4) 

(5) 

In order to contain the spread of the Coronavirus disease (‘COVID-19’), which on 11 
March  2020  was  declared  a  pandemic  by  the  World  Health  Organisation,  Member 
States have adopted a set of unprecedented measures. 

Those measures, taken in response to that exceptional situation, which is beyond the 
control  of  the  Member  States,  have  caused  significant  disturbances  of  economic 
activities  reflected  in  a  steep  decline  in  gross  domestic  product  and  a  significant 
impact on employment, social conditions, poverty and inequalities. In particular, those 
measures have disrupted supply chains and production and have caused absences from 
the workplace. In addition, the provision of many services has become impossible or 
very  difficult.  At  the  same  time,  consumer  demand  has  dropped.  Many  businesses 
experience liquidity shortages, and their solvency is at risk, while the financial markets 
are  very  volatile.  Key  sectors  like  travel  and  tourism  are  particularly  hard  hit.  More 
broadly, those measures have already led to or will lead to severe deterioration of the 
financial situation of many businesses in the Union.  

The  crisis  has  spread  quickly  in  the  territory  of  the  Union  and  in  third  countries.  A 
sharp  contraction  of  growth  in  the Union  is  foreseen  for  2020.  Recovery  risks  being 
very  uneven  in  the  different  Member  States,  increasing  the  divergence  between 
national economies. The different fiscal ability of Member States to provide financial 
support where it is needed most for recovery and the divergence of national measures 
endangers the single market as well as social and territorial cohesion. 

A  comprehensive  set  of  measures  for  economic  recovery  are  needed,  requiring 
substantial  amounts  of  public  and  private  investment  to  set  the  Union  firmly  on  the 
path to a sustainable and resilient recovery, creating high-quality jobs, support social 
inclusion  and  repairing  the  immediate  damage  brought  by  the  COVID-19  pandemic 
whilst supporting the Union’s green and digital priorities.  

This exceptional situation, which is beyond the control of the Member States, calls for 
a  coherent  and  unified  approach  at  the  level  of  the  Union.  To  prevent  further 
deterioration  of  the  economy  employment  and  social  cohesion  and  to  boost  a 
sustainable  and  resilient  recovery  of  the  economic  activity,  an  exceptional  and 
coordinated  programme  of  economic  and  social  support  should  be  put  in  place,  in  a 

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(6) 

(7) 

(8) 

(9) 

spirit  of  solidarity  between  Member  States,  in  particular  for  those  who  have  been 
particularly hardly hit. 

As  the  Instrument  is  an  exceptional  response  to  these  temporary  but  extreme 
circumstances,  the  support  under  the  Instrument  should  only  be  made  available  in 
order  to  address  the  consequences  of  the  COVID-19  pandemic  or  the  immediate 
funding needs to avoid a re-emergence of the COVID-19 pandemic.   

This  Instrument  should  in  particular  focus  on  measures  to  restore  labour  markets, 
social  protection  and  health  care  systems,  measures  to  reinvigorate  potential  for 
sustainable  growth  and  employment  in  order  to  strengthen  cohesion  among  Member 
States  and  support  their  transition  towards  a  green  and  digital  economy,  to  provide 
support to businesses affected by the impact of the COVID-19 pandemic, in particular 
small  and  medium  sized  enterprises  and  economically  viable  businesses  facing 
solvency  constraints,  measures  to  strengthen  the  strategic  autonomy  of  the  Union  in 
vital supply chains, support for  research and innovation in response to the COVID-19 
pandemic,  capacity  building  at  Union  level  to  enhance  future  crisis  preparedness, 
support  maintaining  efforts  of  territories  towards  a  just  transition,  and  support  rural 
areas  in  addressing  the  impact  of  the  Covid-19  pandemic.  Trade  and  economic 
relations  with  neighbouring  and  developing  countries,  in  particular  in  the  Western 
Balkans,  countries  covered  by  the  European  Neighbourhood  Policy  and  countries  in 
Africa, are of high relevance for the economy in the Union. For that reason, and in line 
with the global role and responsibility of the Union, financial resources should also be 
used to provide support and humanitarian aid for the efforts of those countries to fight 
the  impact  of  the  COVID-19  pandemic  and  recover  from  it  in  order  to  restore  and 
strengthen trade and economic relations between them and the Union.  

To  ensure  a  sustainable  and  resilient  recovery  throughout the  Union  and  to  facilitate 
the  implementation  of  economic  support,  the  established  mechanisms  of  spending 
through  Union´s  programmes  under  the  relevant  multi-annual  financial  frameworks 
should  be  used.  Support  under  those  programmes  is  provided  in  the  form  of  non-
repayable support, loans, and the provisioning of budgetary guarantees. The allocation 
of financial resources should reflect the extent to which those programmes are capable 
of contributing to the objectives of the Instrument. 

In view of the nature of the measures to be funded, one part of the amounts available 
for  this  Instrument  should  be  used  to  provide  loans  to  Member  States,  whereas  the 
other part of the resources should constitute external assigned revenue in the meaning 
of  Article  21(5)  of  the  Regulation  (EU,  Euratom)  2018/1046  of  the  European 
Parliament  and  of  the  Council2  and  should  be  used  for  non-repayable  support, 
financial instruments or provisioning for budgetary guarantees and related expenditure 
by  the  Union.  While  Articles  12(4)(c)  and  14(3)  of  Regulation  (EU,  Euratom) 
2018/1046  apply  to  commitment  and  payment  appropriations  made  available  in 
relation  to  the  external  assigned  revenue  under  this  Regulation,  in  view  of  the  time 
limits set for the different types of support, commitment appropriations resulting from 
such external assigned revenues should not be automatically carried-over beyond the 
respective  end  dates,  except  for  commitment  appropriations  necessary  for  technical 

2 

Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on 
the  financial  rules  applicable  to  the  general  budget  of  the  Union,  amending  Regulations  (EU)  No 
1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) 
No  1316/2013,  (EU)  No  223/2014,  (EU)  No  283/2014,  and  Decision  No  541/2014/EU  and  repealing 
Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1). 

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and  administrative  assistance  for  implementation  of  the  measures  under  this 
Regulation.  

(10)  Commitment  appropriations  for  non-repayable  support  should  be  made  available 
automatically up to  the authorised amount. Liquidity  should be  managed effectively, 
so that funds are raised only when the legal commitments need to be honoured through 
corresponding payment appropriations.  

(11)  Given  the  importance  of  using  the  amounts  in  the  first  years  of  the  Instrument,  it  is 
appropriate to review progress in the implementation. The Commission should prepare 
a report to this effect by 31 March 2023.  

(12)  Article 135(2)  of the Agreement on the withdrawal of the  United  Kingdom of Great 
Britain  and  Northern  Ireland  from  the  European  Union  and  the  European  Atomic 
Energy  Community3  provides  that  amendments  to  Council  Decision  2014/335/EU, 
Euratom4  that  are  adopted  on  or  after  the  date  of  entry  into  force  of  that  Agreement 
shall not apply to the United Kingdom insofar as those amendments have an impact on 
the United Kingdom's financial obligations. The support under this Regulation and the 
corresponding  increase  of  the  own  resources  ceiling  of  the  Union  would  have  an 
impact  on  United  Kingdom's  financial  obligation.  Article  143(1)  of  the  Withdrawal 
Agreement  limits  the  liability  of  the  United  Kingdom  for  its  share  of  the  contingent 
liabilities  of  the  Union  to  those  contingent  liabilities  which  arise  from  financial 
operations  decided  by  the  Union  before  the  date  of  the  entry  into  force  of  the 
Withdrawal Agreement. Any contingent liability of the Union under this Regulation is 
subsequent  to  the  date  of  the  withdrawal  of  the  United  Kingdom  from  the  Union. 
Therefore, this Regulation should not apply to and in the United Kingdom,  

HAS ADOPTED THIS REGULATION: 

Article 1 
European Union Recovery Instrument 

The European Union Recovery Instrument (‘the Instrument’) is hereby established to support 
the recovery in the aftermath of the COVID-19 pandemic.  

Article 2 
Scope of the Instrument 

(1) 

The  Instrument  shall  support the  recovery  within  the  Union  in  the  aftermath  of  the 
COVID-19 pandemic and shall in particular finance the following measures to tackle 
the adverse economic consequences of that pandemic:  

(a)  measures  to  restore  employment  and  job  creation  and  restore  health  care 

systems; 

(b) 

reforms and investments to reinvigorate the potential for growth, to strengthen 
cohesion among Member States and to increase their resilience; 

3 
4 

OL L 29, 31.1.2020, p. 7. 
Council  Decision  2014/335/EU,  Euratom  of  26  May  2014  on  the  system  of  own  resources  of  the 
European Union (OJ L 168, 7.6.2014, p. 105).  

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(c) 

(d) 

support  measures  for    businesses  affected  by  the  economic  impact  of  the 
pandemic,  in  particular  such  measures  benefitting  small  and  medium-sized 
enterprises, including direct financial investment in those enterprises; 

support  measures  for  economically  viable  businesses  that  have  seen  their 
solvency constrained due to the impact of the COVID-19 pandemic, including 
direct financial investment in those businesses; 

(e)  measures to strengthen strategic autonomy of the Union in vital supply chains, 

including direct financial investment in businesses; 

(f) 

(g) 

(h) 

(i) 

support  measures  for  research  and  innovation    in  response  to  the  COVID-19 
pandemic; 

support  measures  for  increasing  the  level  of  Union’s  crisis  preparedness  and 
for  enabling  a  quick  and  effective  Union  response  in  the  event  of  major 
emergencies;  this  includes  improving  the  strategic  resilience  of  the  Union 
health care systems to enable a quick and effective Union level response in the 
event  of  a  new  cross-border  health  crisis;  measures  include  stockpiling  of 
essential  supplies  and  medical  equipment  and  acquiring  the  necessary 
infrastructures  for  maintaining  appropriate  levels  of  crisis  relevant  medical 
goods and medicines; 

support measures to ensure that a just transition to a climate-neutral economy 
will not be undermined by the COVID-19 pandemic; 

support  measures  to  address  the  impact  of  the  COVID-19  pandemic  on 
agriculture and rural development. 

The  Instrument  shall  also  provide  crisis  support  to  partner  countries  in  order  to 
restore and enhance their trade and economic relations with the Union and strengthen 
their resilience.  

(2) 

The  measures  referred  to  in  paragraph  1  shall  be  carried  out  under  specific  Union 
programmes  and  in  accordance  with  the  relevant  Union  acts  laying  down  rules  for 
those  programmes.  Those  measures  shall  include  technical  and  administrative 
assistance for their implementation. 

Article 3 
Financing of the Instrument and allocation of funds 

(1) 

The Instrument shall be financed up to an amount of EUR 750 000 000 000 in 2018 
prices on the basis of the empowerment in Article 3b of the [ORD]. 

(2) 

The amount referred to in paragraph 1 shall be allocated as follows:  

(a) 

 support  of  up  to  EUR  433  200  000  000  in  2018  prices  in  the  form  of  non-
repayable  support  and  repayable  support  through  financial  instruments, 
allocated as follows:  

(a) 

(b) 

up to EUR 50 000 000 000 in 2018 prices for structural and cohesion 
programmes  of  the  Multi-annual  financial  framework  2014-2020  as 
reinforced until 2022, including support for financial instruments; 

up to EUR 310 000 000 000 in 2018 prices for a programme financing 
recovery  and  economic  and  social  resilience  via  support  to  reforms 
and investments; 

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(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

up to EUR 7 700 000 000 in 2018 prices for a programme related to 
health; 

up to EUR  2 000 000 000 in 2018 prices for programmes related to 
civil protection;  

up to EUR 13 500 000 000 in 2018 prices for programmes related to 
research and innovation, including support for financial instruments; 

up to EUR 30 000 000 000 in 2018 prices for programmes supporting 
territories in their transition towards a climate-neutral economy; 

up  to  EUR  15  000  000  000  in  2018  prices  for  development  in  rural 
areas; 

up to EUR 5 000 000 000 in 2018 prices for providing humanitarian 
aid outside the Union.  

(b) 

loans to the Member States of up to EUR 250 000 000 000 in 2018 prices for a 
programme financing recovery and economic and social resilience via support 
to reforms and investments. 

(c) 

up to EUR 66 800 000 000 in 2018 prices for provisioning for guarantees and 
for related expenditure for the following programmes: 

(i) 

(j) 

(k) 

up to EUR 30 300 000 000 in 2018 prices for programmes aiming at 
supporting  investment  operations  in  the  field  of  Union  internal 
policies; 

up to EUR 26 000 000 000 in 2018 prices for programmes aiming at 
strengthening  the  solvency  of  economically  viable  businesses  in  the 
Union; 

up to EUR 10 500 000 000 in 2018 prices for programmes aiming at 
fostering  sustainable  and  inclusive  economic  growth  outside  the 
Union. 

Article 4 
Rules for budgetary implementation   

(1) 

(2) 

(3) 

For the purposes of Article 21(5) of Regulation (EU, Euratom) 2018/1046, EUR 433 
200  000  000  in  2018  prices  of  the  funds  referred  to  in  Article  3(1)  shall  constitute 
external assigned revenue to the Union programmes referred to in point (a) of Article 
3(2) of this Regulation and EUR 66 800 000 000 in 2018 prices of those funds shall 
constitute  external  assigned  revenue  to  the  Union  programmes  referred  to  in  Article 
3(2)(c) of this Regulation.  

EUR 250 000 000 000 in 2018 prices of the funds referred to in Article 3(1) shall be 
used  for  loans  to  Member  States  under  Union  programmes  as  referred  to  in  Article 
3(2)(b) of this Regulation.  

Commitment  appropriations  covering  support  as  referred  to  in  point  (a)  and  (c)  of 
Article  3(2)  shall  be  made  available  automatically  up  to  the  amounts  referred  in 
Article  3(2)(a)  and(c)  as  of  the  date  of  entry  into  force  of  the  [ORD]  providing  the 
empowerment referred to in Article 3(1). 

(4) 

Legal  commitments  giving  rise  to  expenditure  for  support  as  referred  to  in  Article 
3(2)(a), and where appropriate in point (i) of Article 3(2)(c), shall be entered into by 

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(5) 

(6) 

(7) 

(8) 

(9) 

the  Commission  or  by  its  executive  agencies  by  31  December  2024.  Legal 
commitments in an amount of at least 60 percent of the amount referred to in Article 
3(2)(a) shall be entered into by 31 December 2022. 

Decisions on the granting of the loans referred to in Article 3(2)(b) shall be adopted by 
31 December 2024.  

The  Union’s  budgetary  guarantees  up  to  an  amount,  which,  in  accordance  with  the 
relevant  provisioning  rate  set  out  in  the  respective  basic  acts  corresponds  to  the 
provisioning for the budgetary guarantees  referred to in Article 3(2)(c), depending on 
the  risk  profiles  of  the  supported  financing  and  investment  operations,    shall  be 
granted  only  for  supporting  those  operations  which  have  been  approved  by  31 
December  2024  by  the  counterparts.  The  respective  guarantee  agreements  shall 
foresee  provisions  ensuring  that  financial  operations  corresponding  to  at  least  60 
percent of the amount of those budgetary guarantees are approved by the counterparts 
by 31 December 2022. Where provisioning is used for non-repayable support related 
to the financial and investment operations under point (i) of Article 3(2)(c), the related 
legal commitments shall be entered into by the Commission by 31 December 2024.  

Decisions  on  the  granting  of  the  loans  for  macro-financial  assistance  referred  to  in 
point (iii) of Article 3(2)(c) shall be adopted by 31 December 2024.  

Paragraphs  4  to  7  shall  not  apply  to  measures  referred  to  in  the  second  sentence  of 
Article 2(2). 

Costs  from  technical  and  administrative  assistance  for  the  implementation  of  the 
Instrument,  such  as  preparatory,  monitoring,  control,  audit  and  evaluation  activities 
including  corporate  information  technology  systems  of  this  Regulation  shall  be 
financed from the Union budget.  

Article 5 
Reporting 

By  31  March  2023,  the  Commission  shall  submit  to  the  Council  a  report  on  the  progress 
achieved  in  the  implementation  of  the  Instrument  and  the  use  of  the  funds  allocated  in 
accordance with Article 3(2). 

Article 6 
Entry into force and application 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

This Regulation shall not apply to and in the United Kingdom. References to Member States 
in this Regulation shall be understood as not including the United Kingdom. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

EN 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Council  Regulation  establishing  a  European  Union  Recovery 
Instrument to support the economic recovery after the COVID-19 pandemic 
Policy area(s) concerned in the ABM/ABB structure5  

1.2. 

Economic  and  financial  affairs  (Title  01  of  the  general  budget  of  the  European 
Union, section 3 Commission) 

1.3. 

 Nature of the proposal/initiative  

X The proposal/initiative relates to a new action  

  The  proposal/initiative 
project/preparatory action6  

relates 

to  a  new  action 

following  a  pilot 

 The proposal/initiative relates to the extension of an existing action  

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

The COVID-19 pandemic constitutes a widespread and severe public health crisis. It 
severely affects citizens, societies and economies worldwide. The extent of the health 
crisis and the policy responses taken to control it are unprecedented. As a result, the 
depth of its socio-economic impact is extraordinarily uncertain. Already at this stage, 
it is certain that it presents unprecedented and acute challenges for the financial and 
economic  systems  of  Member  States.  According  to  the  Commission’s  spring 
economic forecasts7, the EU GDP is forecast to contract by about 7.5 % this year  - 
far deeper than during the global financial crisis in 2009 - and to rebound by only 6% 
in 2021, while the EU unemployment rate is set to rise to 9% in 2020, with a risk of 
rising poverty and inequality. 

In  response,  Member  States  have  adopted  exceptional  discretionary  economic  and 
financial measures. Together with the effect of so-called “automatic stabilizers”, i.e. 
payments  foreseen  under  unemployment  insurance  and  social  security  systems 
combined  with  loss  in  tax  revenue,  those  measures  have  a  considerable  bearing  on 
their public finances with aggregate general government deficit surging from 0.6% of 
GDP in 2019 to 8.5% of GDP in both the euro area and the EU this year.  

The crisis could result in lasting damage to the Union’s economic tissue unless it is 
met with a commensurate short and medium term policy response at the level of the 
Union.  

5 

6 
7 

To  be  determined  in  the  2020  and  2021  budgetary  procedures.  ABM:  activity-based  management; 
ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 
European Economic Forecast, Institutional Paper 125. May 2020. 

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A comprehensive plan for European recovery will need  massive public and private 
investment at European level to set the Union firmly on the path to a sustainable and 
resilient  recovery,  creating  high-quality  jobs  and  and  repairing  the  immediate 
damage  brought  by  the  COVID-19  pandemic  whilst  supporting  the  Union’s  green 
and digital priorities. The long-term EU budget, as reinforced, will be the main tool.  

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned 

The proposed act determines the allocation of the proceeds of the Union’s borrowing, 
as authorised under the Own Resources Decision, to  the policy  programmes in line 
with the strategy set out in the European Union Recovery Plan. 

EUR  500  billion  in  2018  prices  will  be  spent  for  non-repayable  support,  repayable 
support  through  financial  instruments  or  for  provisioning  for  budgetary  guarantees 
and related expenditure.  

EUR 250 billion in 2018 prices will be used to provide loans to Member States. The 
Union will bear contingent liability in the form of a guarantee for those loans until 
they are repaid. 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The proposed act shall attribute the financing for measures and actions to tackle the 
adverse economic consequences of COVID-19 and support the economic recovery in 
particular in the following areas:  

  Providing  support  in  the  form  of  grants  and  loans  to  implement  Member  State 

recovery and resilience plans under the Recovery and Resilience Facility; 

  Providing  new  investment  support  under  existing  and  proposed  budgetary 
guarantees  (EFSI/InvestEU)  for  inter  alia  (1)  crisis-impacted  but  viable 
companies  to  emerge  from  the  crisis,  in  particular  to  accelerate  the  twin  green 
and  digital  transition;  (2)  targeted  support  to  projects  of  European  strategic 
interest for internal market supply chains to develop the EU’s strategic autonomy 
in key sectors and capacities; 

  Enhanced  support  to  regions  and  sectors  hit  by  the  crisis  through  reinforced 

cohesion policy measures; 

  Supporting research and innovation  in response to the COVID-19 pandemic; 
  Enhancing the level of crisis preparedness and improving the strategic resilience 

of Union health care systems;  

  Mitigating the impact of the COVID-19 pandemic on the just transition towards a 

green economy in territories; 

  Supporting measures to address the impact of the COVID-19 pandemic on rural 

development; 

  Supporting  partner  countries,  in  particular  in  the  Western  Balkans,  the 
Neighbourhood and Africa, in their efforts to fight and recover from the impact 
of the pandemic and to strengthen their resilience.  

1.4.3. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

EN 

13 

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Speed with which funds are made available to the beneficiary financial instruments. 
It  is  to  be  noted  that  the  Recovery  Instrument  is  a  temporary  initiative  and  time 
limitations are foreseen for the commitment of appropriations. 

Savings per Member States through recourse to EU back-to-back loans compared to 
self-financing on international markets. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

The  current  proposal  for  a  Council  regulation  aims  at  complementing  the  existing 
Union instruments and legal basis, providing a mechanism for attributing support to 
the different policy areas. 

The  operational  provisions  governing  the  implementation  of  this  support  are 
contained  in  the  legislative  acts  defining  the  beneficiary  EU  policy  instruments, 
which aim to provide immediate and forceful support for an economic recovery and 
resilience.  

1.5.2.  Added value of EU involvement 

The  proposed  EU  Recovery  Instrument  is  based  on  Article  122  TFEU.  This  article 
foresees the possibility of measures, decided in a spirit of solidarity between Member 
States, appropriate to the economic situation.  

Currently,  Member  States  are  facing  a  severe  economic  disturbance  caused  by  the 
COVID-19  virus  outbreak  which  has  strong  negative  socio-economic  impacts  in 
Member States. 

The  proposal  allocates  the  financial  support,  made  possible  by  the  temporary  and 
exceptional  empowerment  contained  in  the  Own  Resources  Decision,  to  the  crisis-
related policy interventions in a spirit of European solidarity with affected Member 
States.  Considering  the  extent  of  the  crisis  and  the  scope  of  its  financial  and 
economic  effects,  concerted  action  at  EU  level  is  more  appropriate  to  ensure  that 
sufficient resources are mobilised to generate effective interventions and mitigate the 
direct societal and economic impact caused by COVID-19 crisis.  

The implementation of the European Union Recovery Instrument is underpinned by 
the  subsidiarity  principle.  In  fact,  due  to  the  global  dimension  of  the  COVID-19 
pandemic and of the scope of its financial and economic effects, the Union is better 
placed than single Member States to address the crisis through targeted EU policies, 
made possible by a large-scale resources enabled by the exceptional empowerment to 
borrow to supplement the Union budget, contained in the Own Resources Decision.  

The assignment of the  additional  externally  assigned revenues  via the proposed  act 
will  ensure  that  the  implementation  of  the  envisaged  response  by  the  Union  is  not 
undermined  by  disparities  in  the  ability  of  Member  States  to  mobilise  the  funding 
individually.  

Only a concerted action motivated by a spirit of solidarity between Member States in 
a time of crisis can ensure that the relevant financial means are deployed effectively 
to generate effective interventions by the Union in the most affected areas or sectors.  

1.5.3.  Lessons learned from similar experiences in the past 

When the Union was confronted with a grave financial crisis a decade ago, the legal 
basis of Article 122 of the Treaty on the Functioning of the European Union (TFEU) 

EN 

14 

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enabled the Union to provide financial assistance from the Union to Member States 
faced  with  difficulties  caused  by  an  exceptional  event  beyond  their  control.  The 
Union  adopted  on  the  basis  of  Article  122(2)  Regulation  (EU)  No  407/2010  of  the 
Council of 11 May 2010 establishing a European Financial Stabilisation Mechanism 
(EFSM).  This  instrument  provided  Union  financial  assistance  to  Portugal,  Ireland 
and a bridge financing to Greece by means of back-to-back-loans.  

The legal basis of Article 122 TFEU has been used as the legal basis for the recent 
Commission proposal for the SURE mechanism to support Member State temporary 
unemployment  insurance  schemes.  This  legal  basis  is  deemed  appropriate  for  an 
exceptional  occurrence  beyond  Member  States’  control  which  calls  for  a  collective 
Union  resposne  in  a  spirit  of  solidarity,  and  can    therefore  also  be  used  in  this 
particular crisis event of the COVID-19 virus outbreak.  

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

The proposed European Union Recovery Instrument assigns the additional financial 
means needed for the European Union Recovery Plan to the policy instruments that 
will  address  the  profound  social  and  economic  consequences  of  the  crisis.  The 
Recovery Plan itself extends and profoundly deepends the Union policy response to 
the  crisis.  Earlier  initiatives  taken  in  response  to  the  crisis  include  the  European 
instrument  for  temporary  support  to  mitigate  unemployment  risks  in  an  emergency 
(SURE)  following  the  COVID-19  virus  outbreak  (SURE  instrument),  the  “Corona 
Response  Investment  Initiative”,  the  proposed  enlargement  of  the  scope  of  the 
European  Union  Solidarity  Fund,  the  reactivation  of  the  Emergency  Support 
instrument  and  other  instruments  so  support  employment  such  as  the  European 
Social Fund and Invest EU. 

The Recovery Instrument is an essential element in a more powerful and far-reaching 
policy  response  to  offset  the  crisis  and  support  the  economic  recovery  and  repair 
process. The Recovery Instrument directs support towards  cohesion instruments, the 
Recovery and Resilience Facility, and the scaling-up of EU budgetary guarantees to 
support businesses and investment.  

The  Recovery  Instrument  will  have  the  same  level  of  transparency,  accountability 
and audit control as the traditional budget. 

The very significant financial means distributed under the Recovery Instrument calls 
for  the  strong  reinforcement  of  the  Commission’s  internal  capacity  to  manage  and 
administer  this  resource.  A  number  of  critical  business  processes  will  need  to 
substantially upgraded notably:  accounting and reporting on distribution and use  of 
the means allocated to the different policies; administration and reconciliation of all 
payments  and  transfers  to/from  Member  States,  and  to  beneficiary  policies; 
arrangement of loans and ensuring that all means are available when needed and on 
the  most  advantageous  terms;  the  necessary  enabling  informatics  support.  Building 
this  capacity  in  the  time-frames  needed  to  implement  the  Recovery  Plan  will  be 
indispensable for achieving the objectives of the Recovery Plan.  

EN 

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1.6. 

Duration and financial impact  

X Proposal/initiative of limited duration  

X  Financial  impact  from  entry  into  force  of  Regulation  to  completion  of  loans 
maturity,  overlapping  several  Multiannual  Financial  Frameworks;  no  maturities 
are envisaged before 2028.  

 Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) planned8  

X Direct management by the Commission 

–  X by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

X Shared management with the Member States  

X Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–  X  the EIB and the European Investment Fund; 

–    bodies  referred  to  in  Articles  208  and  209  of  Regulation  (EU,  Euratom) 

1046/2018; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

8 

Details of management modes and references to Regulation (EU, Euratom) 1046/2018  may be found 
on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

Actions receiving financial assistance under this proposal shall report regularly. 

By  31  March  2023,  the  Commission  shall  submit  to  the  Council  a  report  on  the 
progress achieved in the implementation of the Instrument and the use of the funds 
allocated in accordance with Article 3(2).  

2.1.1.  Risk(s) identified  

Management  of  risks  in  the  administration  of  the  instrument  requires  a  significant 
investment  in  development  of  the  Commission’s  financial  administrative  capacity. 
This investment explains the administrative expenditure linked to this policy, through 
the  recruitment  of  specialised  staff  including  from  national  administrations.  The 
increased  staff  resources  is  also  needed  for  support  services  such  as  accounting, 
back-office and dedicated IT support. 

The Recovery Instrument depends on Commission issuance of large volumes of debt 
on  international  capital  markets  under  the  empowerment  granted  by  the  ORD.  The 
sudden  increase  in  debt  issuance  in  a  period  when  there  is  likely  to  be  extensive 
recourse to capital markets by other sovereigns and institutions gives rise to the risk 
of deterioration in the terms and conditions available to the Union. This risk will be 
managed through the implementation of a new debt management strategy to help the 
Union  to  obtain  the  best  available  terms,  while  safeguarding  its  very  high  credit 
rating.  

2.1.2. 

Information concerning the internal control system set up 

The  European  Commission's  existing  internal  control  system  applies  to  ensure  that 
funds available under the EU Recovery Instrument are used properly and in line with 
appropriate legislation.  

The current system is setup as follows:  

1. The internal control teams focuses on compliance with administrative procedures 
and legislation in force. The Internal Control Framework of the Commission is used 
for this purpose.  

2. Regular audit of grants and contracts by external auditors, which will be awarded 
under this instrument will be fully  incorporated in annual audit plans.  

3. Evaluation of overall activities by external evaluators.  

Actions performed  may be audited by the European Anti-Fraud office (OLAF) and 
the Court of Auditors. 

2.1.3.  Estimate of the costs and benefits of the controls and assessment of the expected level 

of risk of error  

N.A. 

2.2.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

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Maximum  transparency  and  proper  monitoring  of  the  use  of  the  EU  financial 
the  Member  States,  other 
resources  are  required.  Reporting  obligations  for 
beneficiaries and the Commission will apply. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

  No existing budget lines  

  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

Diff./Non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
Regulation (EU, 
Euratom) 
1046/2018   

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3.2. 

Estimated impact on expenditure  

The proposal has no impact on expenditure. A p.m. line will be created in the budgetary procedure.  

3.2.1. 

Summary of estimated impact on expenditure  

EUR million (to three decimal places) 

Year 
2020  

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

Year 2026 

Year 2027 

TOTAL 

Heading of multiannual financial  
framework  

DG: BUDG 

 Operational appropriations  

Commitments 

Payments 

Commitments 

Payments 

TOTAL appropriations 
for DG BUDG 

 
TOTAL 
appropriations  

operational 

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative 
nature financed from the envelope for specific 
programmes  

(1) 

(2) 

=1+3 

=2+3 

(4) 

(5) 

(6) 

TOTAL appropriations  

Commitments 

=4+ 6 

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(heading 2) 

Payments 

=5+ 6 

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Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

DG BUDG 

 Human resources  

 Other administrative expenditure  

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

EUR million (to three decimal places) 

0,86 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

24,516 

TOTAL DG BUDG 

Appropriations  

0,86 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

24,516 

TOTAL appropriations 
under HEADING 5 (2020) and 
HEADING 7 (2021-2027) 
of the multiannual financial framework  

(Total 
commitments  = 
Total 
payments) 

0,86 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

24,516 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under the multiannual financial 
framework  

Commitments 

0,86 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

24,516 

Payments 

0,86 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

24,516 

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3.2.2.  Estimated impact on operational appropriations  

–   

–  X 

The proposal/initiative does not require the use of operational appropriations  

The proposal/initiative requires the use of operational appropriations in budget years 2020-2027: payment of interests  as 

indicated in the table above

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3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–   

The proposal/initiative does not require the use of appropriations of an 

administrative nature  

–  X 

The  proposal/initiative  requires  the  use  of  appropriations  of  an 

administrative nature, as explained below: 

EUR million (to three decimal places) 

Year 
2020 9 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

HEADING 5 (7 from 
2021) 
of the multiannual 
financial framework 

Human resources  

0,86 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

24,516 

0,86 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

24,516 

Other administrative 
expenditure  

Subtotal HEADING 5 (7) 
of the multiannual 
financial framework  

Outside HEADING 510 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

0,86 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

3,38 

24,516 

2020: 10 posts for 6 months, 5 SNEs for 3 months. From 2021: 18 posts and 8 SNEsThe appropriations required for human 
resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by  appropriations  from  the  DG  that  are  already 
assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional 
allocation  which  may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of budgetary 
constraints. 

9 
10 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of 
EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

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3.2.3.2.  Estimated requirements of human resources 

–   

–  X 

The proposal/initiative does not require the use of human resources.  

The  proposal/initiative  requires  the  use  of  human  resources,  as 

explained below: 

Estimate to be expressed in full time equivalent units 

Year 
2020 

Year 
2021 

Year 
2022 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

Enter as many years as necessary to 
show the duration of the impact (see 
point 1.6) 

10 

18 

18 

18 

18 

18 

18 

18 

8 AD, 10 AST 

5 

8 

8 

8 

8 

8 

8 

8 

8 SNE 

 Establishment plan posts (officials and temporary staff) 

XX 01 01 01 (Headquarters and 
Commission’s Representation Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)11 

XX 01 02 01 (AC, END, INT from the 
‘global envelope’) 

XX 01 02 02 (AC, AL, END, INT and 
JED in the delegations) 

XX 01 04 
yy 12 

- at 
Headquarters 

- in 
Delegations  

XX 01 05 02 (AC, END, INT - Indirect 
research) 

10 01 05 02 (AC, END, INT - Direct 
research) 

Other budget lines (specify) 

TOTAL 

15 

26 

26 

26 

26 

26 

26 

26 

DG BUDG is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

Debt issuance, loan administration and accounting, settlement.  

External staff 

Debt issuance, loan administration and accounting, settlement. 

11 

12 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JED= Junior Experts in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

25 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4.  Compatibility with the current multiannual financial framework  

–  X 

The  proposal/initiative  is  compatible  the  current  and  proposed  next 

multiannual financial framework. 

–   

The  proposal/initiative  will  entail  reprogramming  of  the  relevant 

heading in the multiannual financial framework. 

–   

The proposal/initiative requires application of the flexibility instrument 

or revision of the multiannual financial framework. 

3.2.5.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties.  

–  X The proposal/initiative provides for the co-financing estimated below: 

No co-financing; nevertheless, provisioning for budgetary guarantees may be provided for a 
specific Union programme up to the amount of voluntary commitments provided by the 
Member States ensuring the repayment of the borrowings by the Union.  

EN 

26 

  EN 

 
 
 
3.3. 

Estimated impact on revenue  

–   

–  X 

The proposal/initiative has no financial impact on revenu. 

The proposal/initiative has the following financial impact: 

– 

X 

on assigned revenues (budget revenue line to be determined) 

Over  the  period  of  implementation,  EUR  537.4  billion  (in  2018  prices)  from  proceeds  of 
borrowing operations will constitute external assigned revenues devoted to grants to MSs and 
budgetary guarantees. 

EUR billion (rounded) 

2021 

2022 

2023 

2024 

2025 

2026 

2027 

total 

After 
202713 

35.0 

84.5 

111.8 

122.5 

74.5 

34.4 

17.9 

480.7 

19.3 

37.1 

91.5 

123.5 

138.0 

85.6 

40.3 

21.4 

537.4 

23.1 

constant 
prices 2018 

current 
prices  

13 Includes translation differences.  

EN 

27 

  EN