The Regional Emergency Support to Reconstruction (“RESTORE”) proposal emerges as a crucial tool in enabling EU countries to seamlessly direct European regional development funds (ERDF) and cohesion funds towards disaster reconstruction. This initiative holds the potential to significantly enhance the recovery efforts in affected regions. As a result, the EU's ERDF can now fund recovery projects up to 95% of their total cost, providing a substantial financial boost. Additionally, up to 25% of the full amount will be made available as additional pre-financing to offer quick liquidity to those in need. The proposal also allows for more flexible utilization of European Social Fund Plus funds, enabling the financing of short-term work schemes, supporting access to healthcare, and providing essential basic necessities.

Flexibility for Disasters in 2024 or 2025

In 2024 and 2025, flexibility will be at the forefront. This allows for a more agile response to disasters during these critical years. In 2025, the proposed changes are anticipated to mobilize €3 billion in funding by front-loading payments for the 2025–2027 period. This proactive approach ensures that resources are readily available when needed most.

Recovery in Agriculture and Forestry

EU countries with unspent funds from rural development programmes will be able to expedite the use of this money to compensate the losses of farmers, forest holders, and Small and Medium-sized Enterprises (SMEs) actively engaged in these sectors. Those with at least 30% of their production potential destroyed will receive lump sum payments fully covered by EU funds. Payments to beneficiaries are scheduled to be made by the end of 2025, providing a timely and much-needed support mechanism.For example, a farmer in a disaster-stricken region can now access these funds quickly to rebuild their infrastructure and get back on their feet. This not only helps individual businesses but also contributes to the overall recovery of the agricultural and forestry sectors.Another aspect is that the flexibility in using these funds allows for a more targeted approach. Instead of being tied to specific bureaucratic procedures, the money can be allocated directly to where it is needed most, speeding up the recovery process.

Quotes and Perspectives

Andrzej BUŁA (EPP, PL), the co-rapporteur for the RESTORE regulation, emphasized, “This law is of utmost importance for regional and local authorities in regions affected by natural disasters. It clearly demonstrates that the EU is capable of acting swiftly and flexibly, and that we are providing genuine assistance to our fellow European citizens. This help can now be made available in a timely manner.”Younous OMARJEE (the Left, FR), another co-rapporteur, stated, “After Parliament showed full support for the victims of the unprecedented storm in Mayotte, we have adopted the RESTORE law to ensure that we can assist the victims of this catastrophe and similar events in rebuilding what they have lost. We must adapt our disaster response and regional policy to the new realities of climate change, and RESTORE will enable us to respond quickly and effectively to future disasters.”Veronika VRECIONOVÁ (ECR, CZ), the rapporteur for the European Agricultural Fund for Rural Development (EAFRD) related regulation, said, “Several countries have been hit by natural disasters in 2024, and the concrete help provided by the EU is greatly needed by both countries and their citizens. Today's decision will assist many member states in releasing unspent funds more promptly for those who urgently require them.”These quotes highlight the significance and impact of the RESTORE proposal from different perspectives, emphasizing its role in providing timely and effective support.

Adoption and Next Steps

The “RESTORE” proposal was approved with a resounding 638 votes in favor, 10 against, and 5 abstentions. The proposal providing assistance from the EAFRD also received 644 votes in favor, 6 against, and 3 abstentions. Now, both laws need to be formally endorsed by the Council. Once endorsed, they will enter into force. The RESTORE law will come into effect a day after being published in the EU Official Journal, while the EAFRD-related law will take effect on the day of its publication. This marks an important milestone in the EU's efforts to address disaster reconstruction and provide much-needed support to affected regions.In conclusion, the RESTORE proposal and its related regulations represent a significant step forward in the EU's ability to respond effectively to natural disasters. Through flexible funding mechanisms and targeted support, the EU is working towards the recovery and resilience of affected regions and their communities.