13
Feb
2023
Watch
REPowerEU chapters in recovery and resilience plans (debate)
Madam President, the evolution of the Recovery and Resilience Facility perfectly represents what some refer to today as the ‘age of permacrisis’. It was established to tackle problems caused by the pandemic. Now we’re retrofitting it in order to tackle the energy crisis. As we now face the next challenge in Europe, the challenge of competitiveness, some have suggested an EU Sovereignty Fund. But maybe we should be looking again at the RRF for a solution. We have a skills gap. We suffer from strategic dependencies, and we’re a heavily regulated jurisdiction compared to other parts of the world. And the Inflation Reduction Act in the United States has added further pressure. But relaxation of State Aid rules alone will be insufficient and unfair to Members with less available fiscal space. So if we can’t agree on new funding immediately, we will need to repurpose the RRF as suggested by the Greek Minister of Finance, Christos Staikouras. And a viable option could be the conversion of some RFF loans into grants. This Greek proposal can contribute substantially to finding a viable and practical solution to Europe’s competitiveness crunch.