The COVID-19 crisis has affected all sectors of Europe’s economy, and has required a tenacious, coordinated response to ensure all in Europe are able to navigate this extraordinary situation.  Launched in 2020 as an extension to cohesion policy’s crisis response and crisis repair measures, the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU) initiative represents a significant addition to the EU funding Member States can access to manage difficulties arising from the pandemic.

REACT-EU funds will be vital to prevent the widening of disparities and to avoid an uneven recovery process. These funds will enable Member States to continue to focus on rebuilding the resilience of healthcare systems, restoring labour markets, supporting workers and enterprises and addressing the social impact of the crisis – while preparing future-proof foundations of recovery. REACT-EU will ensure Europe continues to develop a green, digital, inclusive and resilient economy.

This initiative will work to bridge the gap between the immediate crisis response under the 2014-2020 EU Structural Funds, and long-term recovery programmes under the 2021-2027 cohesion policy. It includes € 47.5 billion of additional funds that will be made available to the 2014-2020 European Regional Development Fund (ERDF),the European Social Fund (ESF) as well as the European Fund for Aid to the Most Deprived (FEAD) and the Youth Employment Initiative (YEI). These additional funds will be provided in 2021-2022 via the NextGenerationEU temporary recovery instrument.

How REACT-EU works

The additional resources should clearly target the geographic areas where support is most needed. These include Member States and regions whose economy has been hardest hit by the pandemic and have the least capacity to bounce back. Funds should reinforce their crisis response capacity, and help their economies and societies both weather the situation and lay foundations for a swift recovery.

For the ESF and ERDF, REACT-EU resources will be programmed under a new thematic objective ‘Fostering crisis repair in the context of the COVID-19 pandemic and its social consequences and preparing a green, digital and resilient recovery of the economy’ (REACT-EU thematic objective).

REACT-EU: priorities for support under the ESF

For the ESF, the additional resources shall primarily be used to support access to the labour market by maintaining jobs of employees and self-employed, including through short-time work schemes – even when that support is not combined with active labour market measures (unless imposed by national law). The additional resources shall support job creation and quality employment – particularly for people in vulnerable situations – and extend youth employment measures in line with the reinforced Youth Guarantee. Investments in education, training and skills development should address green and digital transitions.

Additional resources shall also support social systems contributing to social inclusion, anti- discrimination and poverty eradication measures, with a particular focus on child poverty and enhancing equal access to social services for children, the elderly, persons with disabilities, ethnic minorities and the homeless.