Two new EU laws will offer quick EU funding for recovery measures following natural disasters that have occurred after 1 January 2024.
The Regional Emergency Support to Reconstruction (“RESTORE”) proposal allows EU countries to more easily channel European regional development funds (ERDF) and cohesion funds to disaster reconstruction. As a result, the EU’s ERDF could fund recovery projects up to 95% of their total cost. To provide quick liquidity to those in need, additional pre-financing of up to 25% of the full amount would also be made available. The proposal would allow for more flexible use of European Social Fund Plus funds to finance short-term work schemes, support access to healthcare and provide basic necessities. Flexibility would apply to disasters in 2024 or 2025. In 2025, the proposed changes are expected to mobilize €3 billion in funding by front-loading payments for the 2025–2027 period.
EU countries with unspent money from rural developments programmes will be able to fast-track the use of this money to compensate losses of farmers, forest holders and SMEs active in these sectors that have experienced destruction of at least 30% of their production potential. This money will be paid in lump sums and will be fully covered by EU funds. Payments to beneficiaries will be made by the end of 2025.
Source: European Parliament
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