50 Billion for recovery from REACT-EU: tourism is in the front row

28 April 2022
Posted by: Twissen
Category: Policies & funding

REACT-EU (Recovery Assistance for Cohesion and the Territories of Europe initiative) is one of the instruments of the NextGenerationEU, as well as being the largest programme, with a budget of €50.6 billion. It is an unprecedented initiative, an addition to the current programming allocations, arose from the need to respond to the Covid-19 pandemic.
Its success and correct implementation depend on three pillars: strength (financial allocation); speed (use of existing programmes until 2023); and full flexibility in implementing the rules.

Covid-19 has had serious repercussions on both economic and social spheres. Some of the major indicators of the pandemic crisis are: the collapse of GDP, rising unemployment, especially among young people, and a decline in general welfare.
The programmes aimed at solving these problems are the ERDF and the ESF, which, in this case, become instruments for the allocation of resources under REACT-EU.
Furthermore, REACT-EU follows the logic of Cohesion Policy, where funding is distributed in proportion to the damage suffered and the relative fragility of the sector/area of interest.

The tourism sector is therefore a priority recipient of funds. Interventions may concern the subsidising of working capital and productive investments in SMEs, with the aim of boosting economic resources directed towards green and digital transition or the training of workers.
Moreover, 25% of the resources allocated by REACT-EU should be used to achieve the climate targets set at European level.

At Twissen we observe that REACT-EU is characterised by high levels of pre-financing and the possibility of receiving 100% European support. The programme’s implementation measures provide for greater flexibility in order to benefit the most affected Member States and companies.

For more information on projects funded in the 2014-2020 budgetary period, see VISITUS: Helping blind and visually impaired tourists enjoy the Croatia-Serbia border region-Projects – Regional Policy – European Commission (europa.eu)