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The European Commission has set out strategic guidance for the implementation of the Recovery and Resilience Facility in its 2021 Annual Sustainable Growth Strategy (ASGS). The Facility is the key recovery instrument at the heart of NextGenerationEU which will help the EU emerge stronger and

more resilient from the current crisis. The Facility will provide an unprecedented €672.5 billion of loans and grants in frontloaded financial support for the crucial first years of the recovery.

The publication of the ASGS launches this year's European Semester cycle. In last year's ASGS the Commission launched a new growth strategy based on the European Green Deal and the concept of competitive sustainability. This year's ASGS is in full continuity with the previous one. The four dimensions of environmental sustainability, productivity, fairness and macroeconomic stability identified in last year's ASGS remain the guiding principles underpinning Member States' recovery and resilience plans and their national reforms and investments. These dimensions lie at the heart of the European Semester and ensure that the new growth agenda helps to build foundations for a green, digital and sustainable recovery.

In order to benefit from the Recovery and Resilience Facility, Member States should submit their draft recovery and resilience plans outlining national investment and reform agendas in line with the aforementioned EU policy criteria. Member States' recovery and resilience plans should address the economic policy challenges set out in the country-specific recommendations of recent years and in particular in the 2019 and 2020 cycles. The plans should also enable Member States to enhance their economic growth potential, job creation and economic and social resilience, and to meet the green and digital transitions.

The Commission also presents today additional guidance to Member States on how best to present their recovery and resilience plans together with a standard template for their plans.

Flagship projects.   Based on their relevance across Member States, the very large investments required, and their potential to create jobs and growth and reap the benefits from the green and digital transitions, the Commission strongly encourages Member States to include in their plans investment and reforms in the following flagship areas: Power up – The frontloading of future-proof clean technologies and acceleration of the development and use of renewables. Renovate – The improvement of energy efficiency of public and private buildings. Recharge and Refuel – The promotion of future-proof clean technologies to accelerate the use of sustainable, accessible and smart transport, charging and refuelling stations and extension of public transport. Connect – The fast rollout of rapid broadband services to all regions and households, including fiber and 5G networks. Modernise – The digitalisation of public administration and services, including judicial and healthcare systems. Scale-up – The increase in European industrial data cloud capacities and the development of the most powerful, cutting edge, and sustainable processors.. Reskill and upskill – The adaptation of education systems to support digital skills and educational and vocational training for all ages.

The implementation of the Facility will be coordinated by the Commission's Recovery and Resilience Task Force in close cooperation with the Directorate-General for Economic and Financial Affairs. A Steering Board chaired by President Ursula von der Leyen will provide a political steer to the Task Force to help ensure the Facility is implemented in a coherent and effective manner.