The EU is taking swift action to make funds available to help combat the effects of the Covid-19 pandemic.

On March 30, the Council adopted two legislative acts in view quick release of funds from the EU budget to deal with the crisis caused by Covid-19. One of the acts amends the rules on structural and investment funds and the other extends the scope of the EU Solidarity Fund.

The coronavirus response investment initiative will give member states access to EUR 37 billion from cohesion funds to strengthen health systems, as well as to support small and medium-sized enterprises, short-term working arrangements and community services.

Of the total, approximately EUR 8 billion will come from the unspent pre-financing in 2019 under the structural funds. The new measure allows member states, instead of returning unused funds to the EU budget, to spend them to mitigate the impact of the pandemic. Other EUR 29 billion will be paid in advance from allocations that should have been paid later this year.

Expenses will be eligible from february 1, 2020, to cover costs already incurred in efforts to save human lives and protect citizens.

Member States will also have more flexibility to make transfers between cohesion policy programs in order to redirect resources to the areas where they are most needed.

Also, the Council changed the scope of EU Solidarity Fund to include , in addition to natural disasters, and public health emergencies . This will help Member States and acceding countries to respond to the immediate needs of citizens during the coronavirus pandemic.

Given the urgency of the situation, both pieces of legislation will be published in the Official Journal of the European Union on 31 March and will enter into force on 1 April 2020.

Regulation on the Initiative for investment in the response to the coronavirus

Regulation extending the scope of the EU Solidarity Fund

Source:  European Council