During the plenary session (14-18/12) of the European Parliament in Brussels, MEPs debate on the additional resources in the context of the COVID-19 pandemic: REACT-EU. Isabel BENJUMEA BENJUMEA (EPP, ES), Pedro MARQUES (S&D, PT), co-Rapporteurs, Agnes JONGERIUS (S&D, NL), Member of the Committee on Employment and Social Affairs (EMPL), Elisa FERREIRA, European Commissioner for Cohesion and Reforms and Karlo RESSLER (EPP, HR), Member of the Committee on Budgets (BUDG), make a statement at the opening of the debate. This transcription speech is the result of an automatic process. Check against delivery.

Brussels

Committee on Employment and Social Affairs

statement

debate

plenary session

Committee on Budgets

JONGERIUS, Agnes (S&D, NL)

FERREIRA, Elisa (S&D, PT, EC)

Multiannual financial framework 2021-2027 (T)

RESSLER, Karlo (EPP, HR)

BENJUMEA BENJUMEA, Isabel (EPP, ES)

MARQUES, Pedro (S&D, PT)

Coronavirus outbreak (T)

REACT-EU (T)

Additional resources in the context of the COVID-19 pandemic: REACT-EU - Opening statements

SOUNDBITE (Original), Dita CHARANZOV&Aacute; (RE, CZ), Vice-President, The next item on the agenda is the report by Mr. Novakov and Ms Krehl: Additional resources in the context of the Covid-19 pandemic REACT EU. I should like to inform members that for all the debates of this part session, there will be no cath the eye procedure and no blue cards will be accepted.

SOUNDBITE (Original), Dita CHARANZOVÁ (RE, CZ), Vice-President, Furthermore, remote intervention from Parliament's liaison offices and the member states are foreseen.

SOUNDBITE (Original), Dita CHARANZOVÁ (RE, CZ), Vice-President, I would like to invite the rapporteur, Senora Benjumea to to start the debate. The floor is yours. Madam Benjumea

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, Thank you very much Madam President, I take the floor on behalf of Mr. Novakov, who is the co-rapporteur for this report. I wish that we weren't having this debate because that would mean that we were not going through the nightmare that we are going through because of Covid.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, What we're seeing is a genuine humanitarian tragedy. This virus, which has killed more than 476 000 European Union citizens. It's caused the deaths of more than one and a half million people throughout the world and has infected more than 72 million people.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, And I want to begin my speech by showing my most sincerest sympathy and compassion for those who have passed away and sending out my support to all of those family members who have lost members of their family and my support also for those who are infected, for I am for all of those who are working in the front line, I'd like to thank them for their sacrifice and their professionalism.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, And thanks to the enormous work being done by scientists and the investments by pharmaceutical companies today, we can see that there is hope because we have a vaccine.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, Soon we will turn the page on the terrible pandemic. But what lies in store is almost as bad. Without any doubt we are facing the largest challenge which we have faced since the Second World War.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, This humanitarian and health tragedy will bring about huge social consequences as well. We're beginning to see those know we're seeing GDP falling. We're seeing an increase in external debt, companies closing down, jobs being lost, consumption falling.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, And all of this is will will will show the uncertainty for the future. And the macroeconomic statistics show the real difficulties that many European Union citizens are facing in the face of this tragedy. We should be proud of what the European Union has done.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, I think that with its institutions, it has been up to the challenge and has been able to provide a rapid, effective, categorical, unanimous response since March and April when initial steps were taken so that member states could get access to funds in order to cover health care costs and to buy masks through to the next generation EU programme.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, It is an unprecedented programme we are talking about some 750 billion euros rather than in that we find REACT EU, which is what we want to talk about today, which has a 47.5 billion euros allocated to it.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, It is essential to think about what it's for. Recovery plans, which put public money, money comes from the debt into economies, are not in and of themselves good news. Let's not forget that money doesn't grow on trees &ndash; it comes from money we or future generations will have to pay, through higher taxes and such.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, So these are plans which need to be used with care only in exceptional circumstances, and they need to be tied in with specific objectives, in my opinion. I think that the plan which we put towards it to you today is a very good plan.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, It's based on a good agreement, which I think shows the areas where investment is required, the objectives which need to be covered and the conditions which need to be met. This is a good roadmap which will contribute to the recovery of our economy.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, What is REACT EU you then? Well, its subsidies and loans to small and medium-sized companies in crisis so that they can lead the recovery impresarios, the self-employed, those that can create employment, which will be very necessary in the future.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, Small-scale businesses which tie our communities together and generate employment. And they really need help at the moment. So it won't be the state which generates new jobs. It will be able to help those that can however, it will be able to help the business sector.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, So we shouldn't make the mistake of going back to the old style of interventionist policies. And this is good and this is why it's good that REACT EU will help the self-employed and those running businesses.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, It also has clear focus on something which I think is fundamental training, digitilizing the economy and supporting our health care systems as wel. These will all be the pillars for our recovery and not just in the short term, but also in the longer term where we focus on the economic and social recovery.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, So this good agreement also includes a retroactive approach since the 1st of February so that member states will be able to use financing from covering the moment. But the pandemic actually started and an additional year will be covered because of the eligibility of investments until 2023.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, This will allow investment to be correctly managed. There's no rush to do it. We haven't seen the end of the crisis yet and many companies, unfortunately, will close down. So still. So we need to think about the mid-term. There's no rush to spend the money. We need to spend it correctly.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, It's also important that we look at the level that this can generate. Adopting this plan we're in within a two week deadline line is, I think, a very good piece of news as well. We need the money to flow through to the regions and to the local authorities. And that's why we recognise the efforts made by the European Union to shorten approval periods throughout this implementation will be done through the existing cohesion fund.

SOUNDBITE (Original), Isabel BENJUMEA BENJUMEA (EPP, ES), co-rapporteur, There won't be additional red tape and 100 percent of the funds will be EU funds. This will not draw national funds. So rounding off, I would like to thank all of the political groups and the Regional Development Committee for the enormous effort that they have made and I think that this REACT EU agreement is good for the EU citizens, it's good for business and it will very much help to create jobs. Thank you.

SOUNDBITE (Original), Dita CHARANZOVÁ (RE, CZ), Vice-President, Muchas gracias. Now, I would like to know why the next speaker, the next rapporteur, Mr Marques for six minute please.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, Thank you, Madam Chair Commissioner, dear President of our REGI Committee, in the name of Constanze Krehl, our rapporteur from S&D Group, I addressed this plenary saying that 2020 was a year of drama and dramatic changes in Europe.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, We've suffered the drama of losing hundreds of thousands of Europeans. We mourn their losses and we extend our solidarity to their families.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, But there were dramatic changes in the way we relate to each other, the way we work, the way we do business, all of this to change this year. And a lot has also changed on politics and policy. Many of those who oppose further European integration started claiming four more European common policies.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, Many of those who did not like cohesion policy started asking for the reinforcement of cohesion policy. Fortunately, the European institutions were able to understand what was needed and what was expected from us.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, After some initial hesitation by some institutions, we have put in place an extensive series of measures which protected the health of citizens, sustain the economies as much as possible, and protected employment and citizens well-being within the multiple policy measures that were put in place to cope with the crisis. It is important to underline that the first half had effective consequences on the ground was cohesion policy.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, The corona response in investment initiatives best known as CRII and CRII+. They were launched in April and had immediate effects front loading 37 billion euros of unallocated resources within the current MFF.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, The flexibility that CRII and CRII+ has brought to the European funds allowed for essential investments at the initial stage of the pandemic, such as on medical equipment, including ventilators and personal protective equipment, the support to SMEs to job maintenance and to the vulnerable groups.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, Cohesion policy was at the forefront of the response to the crisis, and once again, it delivered. And let me stress this. One of the key characteristics of cohesion policy is that it indeed delivers it delivers concrete results, and European citizens deserve and are eager for those results.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, That is why the MFF agreement was also so important, and that is why the blackmail by two member states was totally unacceptable. And in the end, it didn't pay. We overcame that blackmail and Europe can now go forward on a path where we can see hope, where we can see the vaccines coming the beginning of an end to the pandemic. The economy recovery, the creation of jobs and finally, a better Europe, a greener and fairer Europe.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, The new MFF and the new cohesion policy is crucial for the recovery. But react to you is the first instrument that is now ready bridging the gap between the first emergency crisis response and the long term recovery package.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, To every act you approved in time, the negotiation teams worked hard and fast to reach an agreement and as a result, we can already vote now on REACT EU.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, With this initiative, the European Union is offering a strong reaction to the consequences of Covid, which is what people in regions are expecting from us. But to negotiate negotiation teams have also worked well, and we should support strongly the content of the agreement.

<p>SOUNDBITE (Original), Pedro MARQUES (S&amp;D, PT), co-rapporteur, An agreement where important Parliament demands were incorporated, bringing more flexibility and more fairness to REACT EU. The 47,5 billion euros from the Directive programme will allow for investments in the areas where member states have higher needs be it on health and SMEs on supporting the most deprived, the self-employed or the freelancers.</p>

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, The Parliament managed to secure a higher financing and guarantee that the commission quickly checks and approves the programmes so that the money can reach the real economy as fast as possible.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, Parliament has also insisted on having projects funded retroactively from February the 1st onwards, enabling regions all over Europe to fund the reactions to Covid, which date started in spring or summer.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, It was also important for the Parliament to have a stronger focus on border regions, which was made through a link with the programme because border regions in their populations were particularly affected when the borders were temporarily closed.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, Finally, I want to underline the importance of the strong ties that Parliament was able to introduce with the European Social Fund, the Fund for European Aid for the Most Deprived, and the Youth Employment Initiative. Strengthening the social dimension of the REACT EU, a fight in which EMPL and REGI worked side by side.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, The social impact of the crisis must be a priority in the European Union as to do everything to make sure the response to the crisis leaves no one behind. The European Union is a political project aiming at economic and social convergence.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, We must always keep it in mind or European citizens will be alienated from the future of the Union initiatives like REACT EU.

SOUNDBITE (Original), Pedro MARQUES (S&D, PT), co-rapporteur, Policies like cohesion policy that deliver concrete results that touch, protect and improve people's lives are the ones that do the most to strengthen the sense of belief on the future of the Union. Thank you.

SOUNDBITE (Original), Dita CHARANZOVÁ (RE, CZ), Vice-President, Thank you very much. And now I would like to give the floor to the associated committee, Madame Jongerius. The floor is yours.

SOUNDBITE (Original), Agnes JONGERIUS (S&D, NL), Member of the Committee on Employment and Social Affairs (EMPL), Thank you very much Madam President. We really have to get through this crisis and it's not easy. The measures which are necessary are not fun. They don't leave you any room for spontaneity and they hurt.

SOUNDBITE (Original), Agnes JONGERIUS (S&D, NL), Member of the Committee on Employment and Social Affairs (EMPL), So we got to stand together to absorb the blow as far as we can, and we need to prepare for the effects of the crisis. We worked very fast on that to react emergency fun. The REACT EU emergency fund.

SOUNDBITE (Original), Agnes JONGERIUS (S&D, NL), Member of the Committee on Employment and Social Affairs (EMPL), This fund has been conjured up to take care of the the greatest problems. I would like to praise Commissioner Ferreira and my colleagues for the hard work in getting this off the ground.

SOUNDBITE (Original), Agnes JONGERIUS (S&D, NL), Member of the Committee on Employment and Social Affairs (EMPL), REACT Europe gives us time to invest in jobs and sustainability, new jobs which we need desperately. It's also going to be possible to finance part time for a temporary period of time so we can maintain jobs.

SOUNDBITE (Original), Agnes JONGERIUS (S&D, NL), Member of the Committee on Employment and Social Affairs (EMPL), And I'm really glad that it's not to the detriment of the social aspect, which remains unchanged because we know that poverty will include throughout Europe. I see the queues at the food banks growing in my own country, the Netherlands.

SOUNDBITE (Original), Agnes JONGERIUS (S&D, NL), Member of the Committee on Employment and Social Affairs (EMPL), So we must continue to combat poverty and poverty. Fighting poverty must not be left aside. We have 44.5 billion euros ready to help people into employment. And I would call all of the legislators throughout the Netherlands to call for action in The Hague. We have the need and the money is there. So let's get on with it.

SOUNDBITE (Original), Dita CHARANZOVÁ (RE, CZ), Vice-President, Thank you very much. And now I would like to invite thee Commission. Commissioner Ferreira the floor is yours.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, Dear President, dear rapporteurs and shadow rapporteurs, honourable members, since the outbreak of the Covid-19 pandemic in Europe, the Commission has undertaken a comprehensive set of actions for a European response to the crisis: REACT EU

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, That goes for recovery, assistance, for cohesion and at the territories of Europe is an important milestone in this process. And I am thankful, thankful to the rapporteurs and members in particular of the REGI and EMPL parliament committees for addressing the REACT EU proposal.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, We did the same sense of urgency as its predecessor, the Coronavirus Response Investment Initiative, CRII and CRII+ every day.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, CR II and CRII+ deliver emergency support to workers, to hospitals, small businesses across the union reaching 18 billion euros by December to continue this type of support. In only a few months since the commission's proposal on REACT EU in May, the legislators reached a political agreement once again in record time.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, This was the first initiative agreed to be powered by the next generation EU and it is in fact, in fact the first programme negotiation to be completed amongst the MFF next generation package of proposals.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, This is testimony to the added value unanimously confirmed by the Rescue Committee on December the 3rd. Thanks to the proactive approach of the rapporteurs and our joint effort, our message to the European citizens is clear and strong.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, We are leaving no one behind. We are in this together. We will come out of this crisis together. Together, we can achieve a resilient and strong repair of our economy and society.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, Today is an opportunity to unlock forty seven point five billion euros for crisis response and repair in Europe. This additional exceptional amount will support member states and regions most impacted by Covid-19 pandemic and its social consequences.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, It will also serve to prepare the green and digital transitions for a resilient economy and society in the longer term. REACT EU builds on the flexibility of the package while bridging funding in the first crucial years of the recovery towards long term cohesion, investments in digitalisation and sustainability, which key features of cohesion, crisis response retained.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, Some of the previous interventions already underlined its support to the health sector workers, small businesses and young people, in particular liquidity, thanks to a generous financing, flexibility and the possibility of 100 percent EU financing, eligibility of expenditure as of 1st of February 2020 is retained.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, And the measures continue to be embedded in the current cohesion programmes for facility. What is new? First of all, the scope of the initiative, which now covers basic infrastructures for public services and enables the first steps of the repair in line with digital and green goals.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, Also cross-border territories, as was mentioned before. Let me close by highlighting two core principles of REACT EU.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, First, reflecting the importance of tackling climate change. REACT EU is expected to contribute to 25 percent of its resources to climate objectives. And in fact, the commission regrets that we could not get this information or this requirement in the legal text as an article. That is why the Commission will issue a statement in that regard, the adoption of the act.

SOUNDBITE (Original), Elisa FERREIRA, European Commissioner for Cohesion and Reforms, Second, I would like to stress that the involvement of regional and local actors, economic and social partners and civil society is essential for our policy, including REACT EU. I would like to thank again rapporteurs, the committees, and I am looking forward to hearing today's debate. Thank you very much.

SOUNDBITE (Original), Dita CHARANZOVÁ (RE, CZ), Vice-President, Thank you very much, Madam Commissioner. Now, I would like to give the floor on behalf of the Committee on budgets, Mr Ressler, for one minute.

SOUNDBITE (Original), Karlo RESSLER (EPP, HR), Member of the Committee on Budgets (BUDG), Madam Vice Chair, dear colleagues. In this holiday time, there is great uncertainty for families in the whole of Europe, after a very difficult year, the most vulnerable people deserve the full European solidarity.

SOUNDBITE (Original), Karlo RESSLER (EPP, HR), Member of the Committee on Budgets (BUDG), REACT EU is therefore is an important part of our common recovery. Additional funds for employment, for SMEs support to maintaining jobs and also for small businesses will be especially important for the less developed member states.

SOUNDBITE (Original), Karlo RESSLER (EPP, HR), Member of the Committee on Budgets (BUDG), 100 percent European financing of projects which are already under way or in the pipeline will be an additional help for important sectors, for tourism and culture, for the most vulnerable young people, but also for the most affected regions, for rural areas and also for the poor, the outermost regions. Thank you.