In their plenary session on January 20, 2021, the MEPs of the European Parliament decided to change the legal basis for the European Aid Fund for particularly disadvantaged people so that the EU states can increase their national funding with funds from the REACT-EU initiative.
Given the increasing number of people in the EU who are dependent on food aid and other basic support due to the corona pandemic, the EP advocated the additional finances available for the European Structural Funds from REACT-EU as well to expand to the so-called FEAD. REACT-EU (Recovery Assistance for Cohesion and the Territories of Europe) is part of the European development instrument “NextGenerationEU”. It provides the member states with extra funds for the years 2020 to 2022, which can be spent through funds such as the European Social Fund or the European Regional Fund for economic, labor market-related and social measures. The European Aid Fund FEAD was launched in 2014 as an EU action to alleviate the worst forms of poverty and promote social cohesion in Europe. The fund benefits around 13 million people each year, including around four million children. The Covid-19 pandemic has widened the social divide, leading to more job losses, higher unemployment rates and more inequalities.
Parliament adopted its decision by 649 votes in favor, 7 against and 31 abstentions. The EP rapporteur for the initiative pointed out in her explanation that the pandemic had far-reaching consequences for the quality of life of people, especially those who were at risk from the start. For more than 20% of all Europeans, their personal situation has worsened. The fund should therefore help to support people in need on their way out of poverty and back into society.
Due to the revised legal basis, the aid fund is now equated with the other funds. It is up to the Member States to decide whether to top up the funds provided for in the FEAD Regulation. These funds do not have to be co-financed by the federal states. The Commission justifies this exception so that the public budgets should not be burdened any further. Now the Council of the EU still has to formally approve the change in the law. For the new funding phase 2021 to 2027, FEAD was included in the European Social Fund +.