Under debate in the plenary session were two new laws, which aim to increase flexibility in EU funding for recovery measures from natural disasters.
Approved with 638 votes in favour, 10 votes against and five abstentions, the proposal on regional emergency support for reconstruction (“RESTORE”) allows EU countries to more easily channel funds from the European Regional Development Fund (ERDF) and the Cohesion Fund for reconstruction.
According to the initiative, the ERDF will be able to finance recovery projects up to 95% of their total cost. To quickly guarantee funds for people in need, additional pre-financing of up to 25% of the total amount will also be made available.
The proposal also allows for more flexible use of European Social Fund Plus funds to fund short-term work arrangements, support access to healthcare and meet basic needs.
This measure applies to natural disasters that occurred this year, such as fires in Portugal, and floods in Spain.
In 2025, the changes reflect financing of three billion euros, through advance payments for the period 2025-2027.
Another initiative, approved with 644 votes in favor, six against and three abstentions, allows EU countries with unused funds from rural development programs to apply them to compensate for the losses of farmers, holders of forestry areas and small and medium-sized companies active in these sectors that suffered the destruction of at least 30% of their production potential.
Support will be provided in the form of fixed amounts and will be fully covered by EU funds, with payments made by the end of 2025.
“This law is very important for local and regional government bodies in regions affected by natural disasters. It shows that the EU is able to work quickly and flexibly and that we provide real help to our fellow European citizens”, help that can now be “made available quickly”, said Andrzej Buła, (PPE, Poland).
Another co-rapporteur, Younous Omarjee (Left Group, France), defended the need to “adapt disaster response and regional policy to the new realities of climate change”, and highlighted that 'RESTORE' will allow the EU to “respond quickly and effectively to future catastrophes.”
The rapporteur for the law on the European Agricultural Fund for Rural Development (EAFRD), Veronika VRECIONOVÁ (Reformists and Conservatives, Czech Republic), argued that today's decision “will help many Member States to more quickly release unused funds to those who they urgently need.”
The two laws must now be formally approved by the Council.