Glossary

Multiannual Financial Framework (MFF)

The Multiannual Financial Framework is the EU’s long-term budget — forecasting how much can be invested in policies that strengthen Europe’s future. The MFF supports investments into infrastructure, human and social capital, etc., and is a financial tool with a considerable impact on member states. It is a set of financial tools and one of the most important in the hands of governments. The next MFF will extend from 2021 to 2027 and is currently under negotiation.

Recovery and Resilience Facility (RRF)

The Recovery and Resilience Facility has been proposed in May 2020 by the European Commission as an emergency temporary recovery instrument to help eliminate the immediate damage brought by the coronavirus pandemic. This facility will take the form of a €672.5 billion of grants and loans addressed to the EU Member States. These grants and loans will be combined with the next MFF to tackle the effect of the crisis and to invest in a greener and more digital, social and resilient European economy.

Partnership Agreements

After the adoption of the MFF, by far the most important next step is the preparation of the Partnership Agreements on the European Structural and Investment Funds (PAs). The PAs are legally binding documents signed by the European Commission and national governments of the EU Member States (MS). The PAs are preconditions for the national governments to receive EU funding, including funding in the framework of the Recovery Plan.

National Recovery and Resilience Plans

The EU Member States will submit Recovery and Resilience Plans (NRRPs) to the Commission as a precondition for receiving money through the Resilience and Recovery Fund. The post-COVID recovery reforms and investments under the Plans — the majority of which shall address the green and digital transitions — should be implemented by 2026. The Commission will assess the plans that are to address the relevant challenges identified in the European Semester. Each plan is expected to contribute to environmental sustainability, productivity, fairness, and macroeconomic stability in the Member States.