The EU Recovery and Resilience Facility
Deloitte Malta Gi3 Alert
21 October 2021
The EU Recovery and Resilience Facility (the ‘Facility’) is at the core of the EU Commission’s Next Generation EU Instrument. It will support reforms and investments undertaken by EU Member States in order to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.
The Facility will provide €723.8 billion (in current prices) in loans (€385.8 billion) and grants (€338 billion) to the Member States. The key flagship areas to be supported by these funds are:
- Clean Technologies and Renewables (Power Up);
- Energy Efficiency of Buildings (Renovate);
- Sustainable Transport and Charging Stations (Recharge and Refuel);
- Roll- Out of Rapid Broadband Services (Connect);
- Digitalisation of Public Administration (Modernise);
- Data Cloud Capacities and Sustainable Processors (Scale Up);
- Education and Training to Support Digital Skills (Reskill and Upskill).
Malta’s EU Recovery and Resilience Facility Plan
Malta has submitted its Recovery and Resilience Plan (the ‘Plan’) to the EU Commission on 13 July 2021. The Plan has been endorsed by the EU Commission on 16 September 2021, following which, upon approval by the European Council of the €316.4 million in grants to be allocated to Malta, the first €41.1 million in pre-financing will be disbursed.
The key measures of Malta’s Plan are as follows:
Green transition measures
- Energy-efficiency renovations and greening of private and public buildings;
- Financing deep retrofitting and renewable energy installations;
- Access to free public transport;
- A new ferry-landing place at St Paul’s Bay/Buġibba.
Digital transition measures
- Digitalisation of public administration and public services;
- Digitalisation of companies;
- Digitalisation of the justice system.
Economic and social resilience measures
- Promoting integration and well-being of foreign health workers;
- Establishing a Blood, Tissue and Cell Centre for Malta;
- Introducing digital technologies to facilitate interaction with patients and health professionals and improve treatment.
- Enhancing the quality and inclusiveness of education and training;
- Strengthening early school leaving prevention measures;
- Expanding guidance and opportunities for upskilling and reskilling for all adults;
- Reinforcing quality inclusive education for pupils with special needs;
- Improving the education policy monitoring system.
- Strengthening the independence and efficiency of the courts and of the investigative and prosecutorial arms of the justice system.
- Introducing transfer pricing rules;
- Analysis-driven proposals of legislation to limit inbound and outbound payments to EU-listed non-cooperative and low tax jurisdictions;
- Adoption of other measures that partially curb aggressive tax planning.
How can we help?
Deloitte Malta is able to assist in answering your queries, so please do not hesitate to reach out to us for any further guidance you may require.
In addition, Deloitte Malta is able to assist with the preparation of the required applications and any supporting documentation, as well as document submission and any required follow-ups.