Commission Delegated Regulation (EU) 2021/2105 of 28 September 2021 supplementing Regulation (EU) 2021/241 of the European Parliament and of the Council establishing the Recovery and Resilience Facility by defining a methodology for reporting social expenditure

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility ¹, and in particular Articles 29(4), point (b) and 33 thereof,

Whereas:

• (1) The aim of the Recovery and Resilience Facility (‘the Facility’) is to provide effective and significant financial support to step up the implementation of sustainable reforms and related public investments in the Member States. The Facility is a dedicated instrument designed to tackle the adverse social and economic effects and consequences of the COVID-19 crisis in the Union.

• (2) The Facility supports economic and social recovery and contributes – among others – to fighting poverty, inequalities and tackling unemployment, creation of high-quality and stable jobs, improved health care capacity, and better policies for the next generation including on education and training.

• (3) The Facility will notably support Member States in implementing measures in line with the European Pillar of Social Rights and Union initiatives in the employment, education, health and social area, in particular, the European Pillar of Social Rights Action Plan ² and the Recommendation on an effective active support to employment following the COVID-19 crisis (EASE) ³, the Communication on Youth Employment Support ⁴ and the Recommendation on A Bridge to Jobs – Reinforcing the Youth Guarantee ⁵, the Recommendation on vocational education and training (VET) for sustainable competitiveness, social fairness and resilience ⁶, the Recommendation establishing the European Child Guarantee ⁷, the Strategy for the Rights of Persons with Disabilities 2021-30 ⁸, the European Skills Agenda for sustainable competitiveness, social fairness and resilience ⁹, the European Education Area ¹⁰ and the Digital Education Action Plan ¹¹, the EU Anti-racism Action Plan 2020-25 ¹², the EU Roma strategic framework for equality, inclusion and participation ¹³, the Gender Equality Strategy 2020-25 ¹⁴, the LGBTIQ Equality Strategy 2020-25 ¹⁵, the Communication on Building a European Health Union ¹⁶, the Pharmaceutical Strategy for Europe ¹⁷, and Europe’s Beating Cancer Plan ¹⁸.

• (4) In this context, it is important to be able to report on the reforms and investments financed by the Facility which have a social dimension. Pursuant to Article 29(4), point (b) of Regulation (EU) 2021/241, the Commission is to define a methodology for reporting social expenditure, including on children and the youth, under the Facility.

• (5) Pursuant to Article 31(3), point (c) of Regulation (EU) 2021/241, the annual report of the Commission to the European Parliament and the Council should include information on the expenditure financed by the Facility under the six pillars referred to in its Article 3, incorporating social expenditure, including on children and the youth.

• (6) The methodology should consist of two steps: firstly, each reform and investment included in the recovery and resilience plan of a Member State with a primary social dimension should be associated by the Commission, in consultation where necessary with that Member State, to one of nine social policy areas under the four broader social categories set out in the Annex; secondly, each measure of a social nature that includes a focus on children and the youth, and also on gender equality as Regulation (EU) 2021/241 puts an emphasis on gender equality, should be flagged, allowing for a specific reporting on expenditure focused on children and the youth, and respectively on gender equality.

• (7) Given that the social expenditure methodology should be operational by 31 December 2021 and in order to allow for the prompt application of the measures provided for in this Regulation, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union.

HAS ADOPTED THIS REGULATION:

Article 1

Definition of the methodology

Article 2

Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 September 2021.

For the Commission

The President

Ursula VON DER LEYEN

ANNEX

Methodology for reporting on social expenditure, including on children and the youth, and on gender equality

1.

The Commission shall assign each measure with a primary social dimension to exclusively one of the following nine social policy areas:

2.

For each measure of a social nature that includes a focus on children and the youth, the Commission shall attribute a flag allowing for the specific reporting of expenditure under the Facility on children and the youth.

3.

For each measure of a social nature that includes a focus on gender equality, the Commission shall attribute a flag allowing for the specific reporting of expenditure under the Facility on gender equality.