The European Commission has recommended that member states focus their recovery plans on renewable energy sources, environmentally clean technologies, digitalisation and development of digital skills in the education system.

The Commission on Thursday published guidance for the implementation of the Recovery and Resilience Facility, which will provide €672.5 billion in grants and loans and which is the key part of the new NextGenerationEU instrument. The guidance was published in the Annual Sustainable Growth Strategy for 2021, marking the start of this year’s European Semester cycle.

“The Recovery and Resilience Facility is at the very heart of NextGenerationEU. It is our key tool to turn the immediate challenges presented by the coronavirus pandemic into a long-term opportunity. Member States need clear guidance to ensure the Facility’s €672 billion is invested both for Europe’s immediate economic recovery, but also for long-term sustainable and inclusive growth. Today, we are presenting this guidance and stand ready to support Member States in developing their national strategies,” Commission President Ursula von der Leyen said.

Last year the Commission launched a new growth strategy based on the European Green Deal and the concept of competitive sustainability, and this year’s strategy is in full continuity with the previous one. Last year’s strategy identified four guiding principles: environmental sustainability, productivity, fairness and macroeconomic stability.

“In order to benefit from the Recovery and Resilience Facility, Member States should submit their draft recovery and resilience plans outlining national investment and reform agendas in line with the aforementioned EU policy criteria. Member States’ recovery and resilience plans should address the economic policy challenges set out in the country-specific recommendations of recent years and in particular in the 2019 and 2020 cycles,” the Commission said.

Member states are required to submit their recovery and resilience plans by 30 April 2021, but the Commission encouraged them to submit their preliminary draft plans from 15 October 2020.