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Document 52021PC0351

Proposal for a COUNCIL IMPLEMENTING DECISION on the approval of the assessment of the recovery and resilience plan for France

COM/2021/351 final

Brussels, 23.6.2021

COM(2021) 351 final

2021/0172(NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for France

{SWD(2021) 173 final}


2021/0172 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

on the approval of the assessment of the recovery and resilience plan for France

THE COUNCIL OF THE EUROPEAN UNION,

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 Article 20 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The COVID-19 outbreak has had a disruptive impact on the economy of France. In 2019, the gross domestic product per capita (GDP per capita) of France was 115% of the EU average. According to the Commission’s Spring 2021 forecast, the real GDP of France declined by 8,1% in 2020 and is expected to decline by 2,9% cumulatively in 2020 and 2021. Longer-standing aspects with an impact on medium-term economic performance include in particular the high public debt ratio, weak competitiveness in a context of low productivity growth, high regulatory restrictions in services and high administrative burdens, and the low level and efficiency of investment in R&D.

(2)On 9 July 2019 and on 20 July 2020, the Council addressed recommendations to France in the context of the European Semester. In particular, the Council recommended improving the sustainability of public finances, supporting the economy during the crisis and ensuing recovery, and improving the resilience of its health system. France also received recommendations on labour market integration, to ensure equal opportunities with a particular focus on vulnerable groups, to address skills shortages and mismatches, and to support employment during the crisis. The Council also recommended to France to ensure the effective implementation of measures supporting the liquidity of firms, in particular for small and medium-sized enterprises, to front-load mature public investment projects and promote private investment to foster the economic recovery. It was also recommended to France to invest in key sectors such as the green and digital transitions. In particular, for the green transition, France was recommended to invest in sustainable transports, renewable energies, energy interconnections and infrastructures, and clean and efficient production and use of energy. The Council also recommended to France to invest in research and innovation while improving the efficiency of public support schemes. Finally, it was recommended to France to improve its business environment by simplifying the tax system, reducing administrative burdens, fostering firms’ growth and removing barriers to competition in services. Having assessed progress in the implementation of these country-specific recommendations at the time of submission of the recovery and resilience plan, the Commission finds that the recommendation on fostering the growth of firms (country-specific recommendation 2019.4.3) has been fully implemented. Substantial progress has been achieved with respect to the recommendations on simplifying the tax system, in particular reducing taxes on production (country-specific recommendation 2019.4.1 and country-specific recommendation 2020.4.3), on taking all necessary measures to effectively address the pandemic, sustain the economy and support the ensuing recovery (country-specific recommendation 2020.1.1), on mitigating the employment and social impact of the crisis (country-specific recommendation 2020.2.1), and on ensuring the effective implementation of measures supporting the liquidity of firms, in particular for small and medium-sized enterprises (country-specific recommendation 2020.3.1).

(3)On 2 June 2021, the Commission published an in-depth review under Article 5 of Regulation (EU) No 1176/2011 of the European Parliament and of the Council 2 for France. The Commission’s analysis led it to conclude that France is experiencing macroeconomic imbalances, in particular relating to high government debt, weak competitiveness and low productivity growth, which have cross-border relevance.

(4)[The Council recommendation on the economic policy of the euro area 3 recommended to euro area Member States to take action, including through their recovery and resilience plans, to, inter alia, ensure a policy stance which supports the recovery and to further improve convergence, resilience and sustainable and inclusive growth. The Council recommendation also recommended to strengthen national institutional frameworks, to ensure macro-financial stability and to complete the Economic and Monetary Union and strengthen the international role of the euro.] [If the Council recommendation is not adopted by the time of the CID adoption, please remove this recital].

(5)On 28 April 2021, France formally submitted its national recovery and resilience plan to the Commission, in accordance with Article 18(1) of Regulation (EU) 2021/241. That submission followed a consultation process, conducted in accordance with the national legal framework, of local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. The national ownership of the recovery and resilience plans is underpinning their successful implementation and lasting impact at national level and credibility at European level. Pursuant to Article 19 of that Regulation, the Commission has assessed the relevance, effectiveness, efficiency and coherence of recovery and resilience plan, taking into account the assessment guidelines of Annex V to that Regulation.

(6)The recovery and resilience plans should pursue the general objectives of the Recovery and Resilience Facility established by Regulation (EU) 2021/241 and of the EU Recovery Instrument set up by Council Regulation (EU) 2020/2094 in order to support the recovery in the aftermath of the COVID-19 crisis. They should promote the Union´s economic, social and territorial cohesion by contributing to the six pillars referred to in Article 3 of Regulation (EU) 2021/241.

(7)The implementation of the Member States’ recovery and resilience plans will constitute a coordinated effort of investment and reforms across the Union. Through the coordinated and simultaneous implementation of these reforms and investments and the implementation of cross-border projects, these reforms and investments will mutually reinforce each other and generate positive spillovers across the whole Union. Therefore, about one third of the impact of the Facility on Member States’ growth and job creation will come from spillovers from others Member States.

Balanced response contributing to the six pillars

(8)In accordance with Article 19(3) point (a) and section 2.1 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all six pillars referred to in Article 3 of Regulation (EU) 2021/241, taking the specific challenges and the financial allocation of the Member State concerned into account.

(9)The plan includes measures that contribute toward all of the six pillars, with a significant number of components of the plan addressing multiple pillars. Such an approach contributes to ensuring that each pillar is comprehensively addressed in a coherent manner. Furthermore, given the specific challenges of France, the particular focus on smart, sustainable and inclusive growth, along with the overall weighting across pillars, is considered adequately balanced.

(10)The plan envisages a large focus on climate transition, with around half of the components contributing to the green transition. Relevant measures include increasing the energy efficiency of buildings, support to cleaner transport and innovation for cleaner sources of energy. The plan addresses digital-related challenges in multiple areas, by improving infrastructure, digitisation of public services and SMEs. In order to improve the resilience of the education and training system, the plan includes several measures facilitating accessibility of digital tools to all the population notably by modernising education and training schemes. The health sector should also benefit from large investment to facilitate the digital transition.

(11)The plan extensively covers the third pillar of smart, sustainable and inclusive growth, with one third of the components directly contributing to it. Economic cohesion, productivity and competitiveness are directly covered by several components of the plan. The plan contains several measures that contribute to boosting innovation in key technologies such as cybersecurity, quantum and cloud to increase the competitiveness of the French economy and to increase the use of digital solutions for education, culture and for the greening of the economy. Reforms should simplify further administrative steps for businesses. Two components address social and territorial cohesion. The plan supports transport infrastructure and health infrastructure around the country, including in rural areas, less developed regions and outermost territories. The plan includes measures for job preservation, with a focus on young people and persons with disabilities, as well as a reform of the national unemployment agency and unemployment insurance.

(12)One third of the plan contributes towards health, economic, social and institutional resilience, thereby enhancing the economic, social and territorial cohesion and convergence within France and the Union. Reinforcement of the healthcare system is well addressed in the plan, with investment in infrastructure and digitisation. Important fiscal reforms to be undertaken should improve the effectiveness of the fiscal governance framework and make the assessment of the quality of public spending a regular practice, contributing to the objective to stabilise and reduce the debt ratio. The assessment of the environmental impact of the State Budget (“green budgeting”) should ensure that public spending is oriented towards inclusive and green growth. Policies for the next generation are covered by a number of measures, with a direct impact on the youth, such as supporting education performance, including for the most disadvantaged children, boosting apprenticeships, vocational education and youth employment, improving youth career and income prospects. This is accompanied by the measure on the digitalisation of education.

Addressing all or a significant subset of challenges identified in Country Specific Recommendations

(13)In accordance with Article 19(3) point (b) and section 2.2 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations, including fiscal aspects thereof and recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011, addressed to the Member State concerned or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester.

(14)The recommendations related to the immediate fiscal policy response to the pandemic can be considered as falling outside the scope of France’s recovery and resilience plan, notwithstanding the fact that France has generally responded adequately and sufficiently to the immediate need to support the economy through fiscal means in 2020 and 2021, in line with the provisions of the General Escape Clause. Moreover, the recommendation to make sufficient progress towards the medium-term budgetary objective in 2020 is no longer relevant, due both to the lapsing of the corresponding budgetary period and the activation in March 2020 of the General Escape Clause of the Stability and Growth Pact in the context of the pandemic crisis.

(15)The plan includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to France by the Council in the European Semester in 2019 and in 2020, notably in the areas of (i) public finance (namely public debt sustainability, expenditure savings and efficiency gains), (ii) support to businesses (access to finance, competitiveness, reduction of administrative burden, as well as fostering the research and development ecosystem), (iii) labour market policies (tackling unemployment, addressing labour market integration and skills mismatches, ensuring education for vulnerable groups), (iv) the resilience of the healthcare system (modernisation and coordination of care, eHealth, prevention), (v) the green transition (reduction of greenhouse gas emissions on the long term, decrease of emissions in the transport sector, and increase of energy efficiency), (vi) the digital transition (improving connectivity and digital skills of the population, and fostering the digitalisation of firms). After successful completion of the plan’s set of reforms and investments, the underlying challenges and bottlenecks are expected to have been addressed to a significant extent.

(16)A significant part of the investments in the French recovery and resilience plan is oriented to the green and digital transitions, health and research and development with a view of enhancing the competitiveness of French businesses. The weak productivity growth observed before the crisis should be addressed by the planned investment in human capital with several measures aiming at supporting skills, in particular digital ones, the digitalisation of businesses and investing in innovation.

(17)The public finance reforms are expected to help improve the quality and efficiency of public expenditures and stabilise and eventually reduce French public debt in the medium term. In particular, the reform of the governance of public finances should establish a multi-annual expenditure rule for general government expenditure and reinforce the prerogatives of the national fiscal council. The implementation of this new governance framework, as well as a multi-year trajectory for public finances that allows the debt ratio to be stabilised and then reduced, will be set out in the new public finance programming laws. A second reform introduces a regular evaluation of the quality of public spending and of the measures taken to improve it.

(18)The plan dedicates a component to the fight against unemployment. The approach focusses on youth with measures on apprenticeship, training, skills, and active labour market policies. Associated reforms, such as the reform of unemployment benefits, which includes measures aiming at addressing the challenge of labour market segmentation, are also expected to bring a lasting positive impact.

(19)By addressing the aforementioned challenges, the recovery and resilience plan is expected to also contribute to correcting the imbalances 4 that France is experiencing, notably with respect to high government debt, weak competitiveness and low productivity growth, which have cross-border relevance.

Contribution to growth potential, job creation and economic, social and institutional resilience

(20)In accordance with Article 19(3) point (c) and section 2.3 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of the Member State, contributing to the implementation of the European Pillar of Social Rights, including through the promotion of policies for children and youth, and on mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within France, through investments in less developed regions (such as outermost regions) and within the Union.

(21)Simulations by the Commission services show that the plan has the potential to increase the GDP of France by between 0,6% and 1,0% by 2024 5 . The recovery and resilience plan includes a significant number of investments that should strengthen France’s growth potential as well as its economic, social and institutional resilience. The investments foreseen in the plan are expected to boost competitiveness and productivity, in particular the investments in R&D, key green technologies such as hydrogen, bio-sourced materials and the decarbonisation of industry, key digital technologies such as quantum computing, cloud computing and cybersecurity, and investments targeting key sectors such as aeronautics. Measures that expand fast broadband network coverage in rural areas and outermost regions, strengthen equity of SMEs, increase the resources of research organisations and higher education institutions, improve public-private cooperation in R&D, and improve digital education and skills, are expected to further bolster France’s growth potential and stimulate job creation.

(22)The plan also includes several reforms that address structural challenges faced by France and that should contribute to greater economic, social and institutional resilience. A reform of the public finance governance framework is expected to reinforce budgetary commitments, enhance the quality of public spending, and to contribute to stabilise and ultimately reduce public debt. A reform of the unemployment benefit system should strengthen incentives for employment and provide more legal stability for employers, while expanding coverage over time. The plan also includes reforms that are expected to reduce administrative and regulatory burdens, enhance the attractiveness of research careers, and increase public funding of R&D.

(23)The recovery and resilience plan envisages significant investments to address social challenges and improve social cohesion and integration of some vulnerable groups (disadvantaged youth, persons with disabilities, and elderly people). To foster educational attainment and labour market integration of young people, investments include support to apprenticeships, targeted hiring subsidies, early school leaving prevention programmes, the creation of additional places in boarding schools and the tertiary and vocational education system, increased State guarantees on student loans, and a temporary increase in the resources of the public employment service. Investments in the digitalisation of educational materials and equipment should enable schools to offer distance learning, thereby increasing institutional resilience. Investments in health should further improve social and territorial cohesion. The plan includes investments in the modernisation and the digitalisation of the health system, with measures such as the introduction of electronic health records, which are expected to improve efficiency and accessibility of care, and in the renovation of residential care homes for elderly people, to allow for a higher quality of care. Social cohesion is also supported by renovations in social housing which should contribute to limiting energy poverty as well as the digitalisation of the administration, which is expected to improve public services.

(24)Several reforms are expected to further strengthen social resilience and cohesion. Reforms to the health system aim to improve the attractiveness of the careers of health personnel and facilitate the organisation of local care. The renewed strategy adopted by the public employment service is expected to better counsel jobseekers, including through a new diagnostic and guidance methodology. Moreover, a reform of the unemployment insurance should incentivise companies to offer more permanent contracts over shorter fixed-term ones. Other reforms regulate the relations between the State and local territories, allowing for more flexible modalities of transfer of powers from the State to local territories, with streamlined decision making to strengthen institutional resilience as well as territorial cohesion. In addition, the cross-cutting reform of public service, through revised recruitment procedures and reinforcement of the equal treatment and opportunity principle, is expected to further contribute to the social cohesion.

Do no significant harm

(25)In accordance with Article 19(3) point (d) and section 2.4 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in the recovery and resilience plan does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 (the principle of ‘do no significant harm’).

(26)France’s recovery and resilience plan includes a systematic assessment of each measure against the principle of ‘do no significant harm’. The information provided allows to assess that measures comply with the principle, for instance by providing justifications on the modalities of application of the existing Union and French legislative framework to avoid any significant harm.

(27)For some measures where calls for projects or calls for interest are still necessary to select specific projects in the future, for example measures related to the fourth ‘Programme d’Investissements d’Avenir’ or to the decarbonisation of industry, the principle of ‘do no significant harm’ is complied with by ensuring, in particular through appropriate milestones associated with these measures, that the terms of reference of the calls for projects or calls for interest prevent activities that could do significant harm to environmental objectives from being selected.

Contribution to the green transition including biodiversity

(28)In accordance with Article 19(3) point (e) and section 2.5 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that contribute to a large extent (Rating A) to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The measures supporting climate objectives account for an amount which represents 46,0% of the plan’s total allocation calculated in accordance with the methodology of Annex VI to Regulation (EU) 2021/241. In accordance with Article 17 of Regulation (EU) 2021/241, the recovery and resilience plan is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(29)The plan includes structural and long-lasting investments in the energy renovation of the public and private buildings stock, clean mobility infrastructures and vehicles, as well as the decarbonisation of industrial processes, putting France on the path towards a substantial and sustainable reduction of greenhouse gas emissions and therefore to climate transition. The plan also features significant intangible investments in R&D and innovation, in particular in the field of green technologies under the fourth ‘Programme d’Investissements d’Avenir that should promote the deployment of renewable and low-carbon hydrogen as a way to support the decarbonisation of the economy, and to support the aeronautics industry to transition towards a low-carbon industry. In terms of environmental transition, the plan should directly contribute to the preservation of biodiversity through investments in protected areas, ecological restoration operations, improvement of the forest management and extension of wooded areas. Other investments (in circular economy and in particular in the field of plastic materials, in the fight against the artificialisation of soils, in management of water resources and waste, as well as in the agricultural transition) should also contribute to the green transition. Finally, the Climate and Resilience Law, the implementation decrees on the circular economy and the ‘green budgeting’ of public spending should ensure a lasting impact of the French recovery and resilience plan on the green transition, including on biodiversity and environmental protection.

(30)Reforms and investments should make a significant contribution to advance the decarbonisation and climate objectives of France as set out in France’s National Energy and Climate Plan as well as in the ‘Stratégie Nationale Bas Carbone’, whose 2020 revision sets the roadmap to achieve carbon neutrality by 2050. The French recovery and resilience plan mainly focuses on energy efficiency measures, in particular in the building and industry sectors, and reduction of greenhouse gas emissions. As regards renewable energy, the emphasis on renewable and low-carbon hydrogen production as well as other electrification measures, e.g. in the transport sector, is expected to lead to increased consumption of renewable electricity, to the extent that the additional electricity demand is met by additional renewable electricity production. In addition, the facilitation of administrative requirements for the deployment of renewable investments included in the ASAP Law (“Accélération et simplification de l’action publique” – Acceleration and Simplification of Public Action) may foster the development of additional renewable electricity capacity. Therefore, the French plan is expected to contribute to the Union’s energy and climate targets for 2030 and the objective of EU Union climate neutrality by 2050.

Contribution to the digital transition

(31)In accordance with Article 19(3) point (f) and section 2.6 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan contains measures that contribute to a large extent (Rating A) to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 21,3% of the plan’s total allocation calculated in accordance with the methodology of Annex VII to Regulation (EU) 2021/241.

(32)The recovery and resilience plan’s investments for digital transition contribute to tackling France’s challenges, for instance by improving connectivity, fostering the digitalisation of firms, and improving digital education and skills. Investments foreseen in the area of digital connectivity such as ultrafast broadband plan, should have a lasting impact, addressing both structural weaknesses and contributing to improve technological resilience while increasing cohesion among the whole territory, including rural areas. The recovery and resilience plan builds on existing initiatives such as “France Num” to increase the digitalisation of 200°000 SMEs by 2024 while providing employees with the necessary support to manage their transition to digital technologies. The plan also includes investment to support education and employment, including specific interventions for digital skills development, such as a complementary allocation to the individual learning accounts for training in “jobs of the future”, targeting the training of 25000 people in digital professions. These investments will support the implementation of the comprehensive strategy for the digitalisation of education, in particular for primary and secondary schooling. Measures to improve digital skills specifically are key to address France’s structural issues related to the persistent lack of digital skills among the French population, which in 2019 was below the Union average and contribute reaching the Digital Decade target of 80% of Union citizens with basic digital skills by 2030 and 20°000°000 information and communications technology specialists.

(33)Moreover, the plan includes a crosscutting approach to the digital transition of the country. The plan includes digital investments covering research, innovation, deployment of new technologies, digitalisation of the State and the territories, cybersecurity, electronic identity and eHealth. Cybersecurity investments should strengthen public services whose disruption would have a strong impact on citizens. Significant investments in eHealth should support the national digital health services infrastructure and project management. The plan also supports a number of actions for the deployment of key digital capacities, mainly through the Programme d’Investissements d’Avenir. The areas targeted include cybersecurity, 5G, quantum, cloud computing as well as digital education and cultural and creative sectors. The recovery and resilience plan details the participation of the country in two planned digital Important Projects of Common European interest: one on next generation cloud and edge computing and the other on microelectronics and communication technologies, both to be supported under Regulation (EU) 2021/241 via the ‘Programme d’Investissements d’Avenir’.

Lasting impact

(34)In accordance with Article 19(3) point (g) and section 2.7 of Annex V to Regulation (EU) 2021/241, the recovery and resilience plan is expected to have a lasting impact on France to a large extent (Rating A).

(35)The implementation of the investments and reforms envisaged by France in its recovery and resilience plan should have a lasting impact on the country's economic, social and institutional resilience. The investments in technology, innovation such as green technologies, digital, health, and in skills and digital transition envisaged in the plan should have an impact on productivity and thus on the potential growth of the French economy. The measures aimed at increasing employability, particularly of young people, should also have a positive effect on potential growth in the long term. The youth employment policy in the plan is both innovative in its scope and likely to have a lasting impact through its expected effects on employment and social inclusion. The resilience, efficiency and accessibility of the health sector should be strengthened through the implementation of the national health system reform strategy, the modernisation of infrastructure as well as the digitalisation of health. It is expected to improve the availability of certain health services in underserved regions, such as rural areas and outermost regions. The ecological transition is supported by several specific reforms including the Climate and Resilience Law and the Mobility Law. The research reform and related investments should allow France to make some progress towards the 3% of GDP target for R&D by gradually increasing public spending on R&D and strengthening public/private cooperation. The investments to support the transformation of higher education institutions should have high spill over effects that should be beneficial to the economy and society (as a whole, incentivising the transition of these institutions to excellence, increasing the diversification of resources and their role in the innovation chain should have a lasting impact). Finally, specific measures presented in the plan should contribute to the objective of long-term sustainability of public finances.

(36)Lasting impact of the plan can also be enhanced through synergies between the plan and other programmes financed by the cohesion policy funds, notably by addressing in a substantive manner the deeply rooted territorial challenges and promoting a balanced development.

Monitoring and implementation

(37)In accordance with Article 19(3) point (h) and section 2.8 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan are adequate (Rating A) to ensure effective monitoring and implementation of the recovery and resilience plan, including the envisaged timetable, milestones and targets, and the related indicators.

(38)The Ministry of Economy, Finances and Recovery, together with the General Secretariat of European Affairs, is responsible for the monitoring and implementation of the French recovery and resilience plan. Milestones and targets are clear, realistic and well-suited to tracking progress in implementation of the recovery and resilience plan, with relevant, acceptable and robust related indicators, covering all reforms and investments featured in the plan.

(39)The milestones and targets of the French plan constitute an appropriate system for monitoring the plan’s implementation. They are sufficiently clear and comprehensive to ensure that their completion is traced and verified.

(40)The verification mechanisms, data collection and responsibilities described by the French authorities appear sufficiently robust to justify in an adequate manner the disbursement requests once the milestones and targets are assessed as completed.

(41)Member States should ensure that financial support under the Facility is communicated and acknowledged in line with article 34 of Regulation (EU) 2021/241. Technical support may be requested under the Technical Support Instrument to assist Member States in the implementation of their plan.

Costing

(42)In accordance with Article 19(3) point (i) and section 2.9 of Annex V to Regulation (EU) 2021/241, the justification provided in the plan on the amount of the estimated total costs of the recovery and resilience plan is to a medium extent (Rating B) reasonable and plausible and is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact.

(43)France has generally provided breakdowns of costs for the measures, with references to earlier similar projects or studies carried out to justify cost figures and adequate explanations of the methodology used to establish total costs. For the various measures where costs may not be determined in detail beforehand because projects are selected through competitive procedures such as calls for proposals, the recovery and resilience plan generally provides justification, using past experience, that the costs are not disproportionate to the aims of the measure. The assessment of the cost estimates and supporting documents show that most of the costs are reasonable and plausible. However, the fact that sometimes the methodology used is not sufficiently well explained and the link between the justification and the cost itself is not fully clear precludes an A rating for this assessment criterion. Finally, the estimated total cost of the recovery and resilience plan is in line with the principle of cost-efficiency and is commensurate to the expected national economic and social impact.

Protection of financial interests

(44)In accordance with Article 19(3) point (j) and section 2.10 of Annex V to Regulation (EU) 2021/241, the arrangements proposed in the recovery and resilience plan and the additional measures contained in this Decision are adequate (Rating A) to prevent, detect and correct corruption, fraud and conflicts of interests when using the funds provided under that Regulation, and the arrangements are expected to effectively avoid double funding from that Regulation and other Union programmes. This is without prejudice to the application of other instruments and tools to promote and enforce compliance with EU law, including for preventing, detecting and correcting corruption, fraud and conflicts of interests, and for protecting the Union finances in line with Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council.

(45)The national recovery and resilience plan describes in an appropriate way the system for the implementation of the recovery and resilience plan in France. The national regulatory framework represents a robust internal control system whereby clear roles and responsibilities are distributed to the competent actors. At central government level, the Minister of Economy, Finance and Recovery is responsible for steering the recovery plan, in permanent consultation with the General Secretariat for European Affairs (SGAE). The plan is monitored by the “Secrétariat Général France Relance” attached to the Prime Minister and the Minister of Economy. The implementation is delegated to the Ministries by means of “conventions de délégation de gestion” and “chartes de gestion”. In particular, the controls on the milestones and targets are delegated to the Ministries in charge of the implementation of the components through the “convention de délégation de gestion”. A circular is expected to be signed by the Prime Minister prior to the submission of first payment claim relative to (i) the system organisation and the obligations of each structure in terms of ensuring reliability and control of data; (ii) the procedures for collecting and storing data on monitoring indicators. In accordance with the Regulation, all the standardised categories of data set out in Article 22(2)(d) shall be collected. With regard to the internal control system, the authorities in charge of the recovery and resilience plan should rely on the national system in place in France to control the national budget. The “Commission interministérielle de Coordination des Contrôles” (CiCC) is appointed as the national audit and control coordinator. The CiCC aims to protect the financial interests of the Union in France. With its own power of control, it ensures that European funds are used in accordance with Union and national rules. It also has a mission to prevent and sanction fraud. Verification, inspection and audit missions should ensure the effectiveness of these systems and to control the quality of the data transmitted for the most significant measures. It has adopted already in 2016 a national strategy to combat fraud against European funds, and disposes of several actors in the fight against fraud. France has put in place adequate arrangements to avoid double funding under Regulation (EU) 2021/241 and other Union programmes.

Coherence of the plan

(46)In accordance with Article 19(3) point (k) and section 2.11 of Annex V to Regulation (EU) 2021/241, the plan includes to a high extent (Rating A) measures for the implementation of reforms and public investment projects that represent coherent actions.

(47)The French recovery and resilience plan is structured around nine coherent components, which support the common objectives to stimulate the recovery of the French economy, to contribute to the green and digital transition and to increase France’s resilience towards sustainable and inclusive growth. Each component is built around consistent packages of both reforms and investments, with measures that are mutually reinforcing or complementary. Synergies also exist across the various components and no measure contradicts or undermines the effectiveness of another.

Equality

(48)Gender equality and equal opportunities for all are addressed through reforms and investments supporting education, vocational training and access to employment of youth, including for children and youth from disadvantaged background. These also include specific measures to incentivise the recruitment of workers with disabilities, including in the public service. The plan also contains reforms and investments to improve of the quality of life and care of older persons. As regards gender equality, key measures include the transformation of the public service with quantitative objectives for women in management positions as well as pay transparency obligations for companies. Companies benefitting from measures under Regulation (EU) 2021/241 are expected to contribute to economic, social, and environmental transformations, notably through an obligation for companies to publish an index measuring progress in the area of gender equality.

Security self-assessment

(49)France has provided a security self-assessment for investments in digital capacities and connectivity in accordance with Article 18(4) point (g) of Regulation (EU) 2021/241. Such assessment is present in the plan for the following three measures: the ultrafast broadband plan (‘plan France très haut débit’), the digitalisation of the State and Territories, and mobility and teleworking in the Ministry of Interior.

Cross-border and multi-country projects

(50)France is participating in cross-border and multi-country projects in three distinct fields. In cooperation with other Member States to promote hydrogen technology, France should participate in planned Important Projects of Common European interest (IPCEI) aiming at fostering renewable and low-carbon hydrogen production and use. A second planned IPCEI is focusing on next generation cloud and edge computing, to increase Europe's digital leadership in future data processing and improve the European offer of infrastructure and cloud services. A third planned IPCEI on microelectronics and communication technologies (including 5G/6G) should aim to reinforce Europe’s innovative technologies in this field.

Consultation process

(51)The consultation process was coordinated by the Ministry of Economy and Finance and involved relevant stakeholders, including employers’ organisations, trade unions, enterprises, economists, non-governmental organisations and think thanks. The Parliament contributed to the design of the plan, while regional and local authorities were consulted through specific committees. Social partners were consulted on the plan on four occasions, through the “Conseil économique, social et environnemental” (CESE). To ensure ownership by the relevant actors, it is crucial to involve all local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the plan.

Positive assessment

(52)Following the positive assessment of the Commission concerning the French recovery and resilience plan with the finding that the plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of that Regulation, this Decision should set out the reforms and investment projects necessary for the implementation of the plan, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the plan in the form of non-repayable financial support.

Financial contribution

(53)The estimated total cost of the recovery and resilience plan of France is EUR 40 950 000 000. As the recovery and resilience plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241 and, furthermore, as the amount of the estimated total costs of the recovery and resilience plan is higher than the maximum financial contribution available for France, the financial contribution allocated for France’s recovery and resilience plan should be equal to the total amount of the financial contribution available for France.

(54)In accordance with Article 11(2) of Regulation (EU) 2021/241, the calculation of the maximum financial contribution for France is to be updated by 30 June 2022. As such, in accordance with Article 23(1) of that Regulation, an amount for France should be made available now for a legal commitment by 31 December 2022. Where necessary following the updated maximum financial contribution, the Council, on a proposal from the Commission, should amend this Decision to include the updated maximum financial contribution without undue delay.

(55)The support to be provided is to be financed from the borrowing by the Commission on behalf of the Union on the basis of Article 5 of Council Decision (EU, Euratom) 2020/2053 6 . The support should be paid in instalments once France has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan.

(56)France has requested pre-financing of 13% of the financial contribution. That amount should be made available to France subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of Regulation (EU) 2021/241.

(57)This Decision should be without prejudice to the outcome of any procedures relating to the award of Union funds under any other Union programme than Regulation (EU) 2021/241 or to procedures relating to distortions of the operation of the internal market that may be undertaken, in particular under Articles 107 and 108 of the Treaty. It does not override the requirement for Member States to notify instances of potential State aid to the Commission under Article 108 of the Treaty,

HAS ADOPTED THIS DECISION:

Article 1
Approval of the assessment of the recovery and resilience plan

The assessment of the recovery and resilience plan of France on the basis of the criteria provided for by Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the recovery and resilience plan, the arrangements and timetable for monitoring and implementation of the recovery and resilience plan, including the relevant milestones and targets, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.

Article 2
Financial contribution

1.The Union shall make available to France a financial contribution in the form of non-repayable support amounting to EUR 39 368 318 474 7 . An amount of EUR 24 323 387 303 is available to be legally committed by 31 December 2022. Subject to the update provided for in Article 11(2) of Regulation (EU) 2021/241 calculating an amount for France equal to or more than this amount, a further amount of EUR 15 044 931 171 is available to be legally committed as of 1 January 2023 until 31 December 2023.

2.The Union financial contribution shall be made available by the Commission to France in instalments in accordance with the Annex to this Decision. An amount of EUR 5 117 881 402 shall be made available as a pre-financing payment, equal to 13 per cent of the financial contribution. The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.

3.The pre-financing shall be released subject to the entry into force and in accordance with the Financing Agreement provided for in Article 23(1) of the Regulation (EU) 2021/241. The pre-financing shall be cleared against the payment of the instalments.

4.The release of instalments in accordance with the Financing Agreement shall be conditional on available funding and a decision by the Commission, taken in accordance with Article 24 of Regulation (EU) 2021/241, that France has satisfactorily fulfilled the relevant milestones and targets identified in relation to the implementation of the recovery and resilience plan. Subject to the entry into force of the legal commitments referred to in paragraph 1, to be eligible for payment, milestones and targets shall be completed no later than 31 August 2026.

Article 3
Addressee of the Decision

This Decision is addressed to the French Republic.

Done at Brussels,

   For the Council

   The President

(1)    OJ L 57, 18.2.2021, p. 17-75.
(2)    Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (OJ L 306, 23.11.2011, p. 25).
(3)    Pending final adoption by the Council, after endorsement by the European Council. The text agreed by the Eurogroup on 16 December 2020 is available at: https://data.consilium.europa.eu/doc/document/ST-14356-2020-INIT/en/pdf .
(4)    These macroeconomic imbalances refer to the recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011 in 2019 and 2020.
(5)    Such simulations reflect the overall impact of NGEU, which also includes funding for ReactEU, and increased funding for Horizon, InvestEU, JTF, Rural Development and RescEU. Such simulation does not include the possible positive impact of structural reforms, which can be substantial.
(6)    OJ L 424, 15.12.2020, p. 1.
(7)    This amount corresponds to the financial allocation after deduction of France’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.
Top

Brussels, 23.6.2021

COM(2021) 351 final

ANNEX

to the

Proposal for a Council Implementing Decision

on the approval of the assessment of the recovery and resilience plan for France

{SWD(2021) 173 final}


ANNEX

SECTION 1: REFORMS AND INVESTMENTS UNDER THE RECOVERY AND RESILIENCE PLAN

1.Description of Reforms and Investments

A. COMPONENT 1: Buildings renovation

According to its National Energy and Climate Plan and in order to reach the 20% reduction of energy consumption by 2030 (in comparison with 2012, which is the national objective set for 2030), France needs to invest annually an additional EUR 15 to 25 billion until 2030 into the renovation of buildings, by increasing both the rate and depth of renovation.

This component of the French recovery and resilience plan concerns investments and reforms aiming at improving energy efficiency of all types of buildings: public buildings and private ones, including private and social housing as well as buildings belonging to companies. The reforms supporting investments consist (i) in complementing the reform of the housing policy initiated by the “ELAN” 1 Law adopted in 2018 in order to increase the efficiency of public expenditure through the revision of three existing schemes (APL, Pinel and PTZ 2 ) and (ii) adopting a revised thermal regulation of new buildings (RE2020).

Investments under this component are key to achieving the energy efficiency objective, as buildings stock represents circa 25% of greenhouse gas (GHG) emissions in France and 45% of final energy consumption.

These investments and reforms shall contribute to the country-specific recommendations addressed to France in the past two years, on the need to “focus investment-related policy on […] energy efficiency” (CSR 3, 2019) and to “focus investment on the green […] transition, in particular on […] clean and efficient production and use of energy” (CSR 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

A.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C1.R1): Housing policy

The measure includes two distinct objectives that shall be implemented in two steps.

The revision of the calculation modalities for the APL (“aides personnelles au logement”): the amount of aid shall be calculated, from 1 January 2021 onwards, on the basis of the current income of the beneficiary household, instead of the income of the penultimate year. Such revision shall allow the system to adapt more quickly to the income variations of beneficiaries, with a view to improve social fairness. In addition, the amount of aid shall be recalculated every quarter, allowing for a gradual taking into account of recent changes in income.

The Pinel scheme is an income tax credit scheme for owners investing in new or rehabilitated dwellings in view of renting them. The decision should be taken in 2023 to end the Pinel scheme by the end of 2024 – the Pinel scheme would be later replaced by new provisions to foster mid-range accommodations financed by institutional investors in order to improve its impact on housing supply where the needs are the greatest, for instance by reducing incentives for new constructions in areas where the housing market is not under strain. This shall be complemented by changes in the way so-called zero-rate loans (“PTZ”) are provided, in particular the eligibility of applicants shall be assessed on the basis of the current incomes in order to limit windfall effects that currently exist.

Reform 2 (C1.R2): Revised thermal regulation RE2020

On 1st January 2022, the revised thermal regulation of new buildings shall replace the existing thermal regulation of buildings that entered into force in 2012. The main objectives of the revision of thermal rules for new buildings are:

·The improvement of energy sobriety and the decarbonisation of the energy consumed: introduction of stricter thresholds for (i) the bioclimatic need of housing (lowering the maximum threshold by 30% in comparison to current regulation RT 2012), (ii) non-renewable primary energy consumption, and (iii) GHG from energy consumption (4kgCO2/m²/year for a single-family house, and 14 kgCO2/m²/year for collective housing until 2024 and 6,5 kg after 2024).

·The reduction of the carbon impact of new building: the carbon impact shall take into account the entire life cycle of the building, from its construction phase to its demolition, which represent between 60 to 90% of the buildings’ carbon impact over 50 years. Such considerations shall lead to enhancing the use of more carbon neutral construction materials, such as wood and bio-based building materials (i.e. those that store carbon and emit very little during their production).

·The adaptation of new buildings to climate change: the new regulation RE2020 shall (i) take into account the cooling of constructions in the calculation of the energy needs of a building, (ii) provide a summer comfort indicator calculated during the design of the building, and (iii) set a maximum high threshold of 1250 DH (degree-hour) and a minimum low threshold of 350 DH from which penalties shall apply in the calculation of energy performance.

Investment 1 (C1.I1): Energy renovation of private housing, including energy sieves

The French recovery and resilience plan will finance a grant scheme, called ‘MaPrimeRenov’ (MPR), which will be allocated to owners in order to contribute to financing insulation, heating, ventilation or energy audit works for single-family house or apartments in collective housing. All the MPR financed by the plan will be notified to owners for eligible renovation projects before the end of 2022. In order to guarantee quality standards of the works supported, the renovation works are carried out by companies with the RGE label (“recognized as guarantors of the environment”).

The amount of the premium varies depending on the eligible materials, equipment and works performed, up to a ceiling of EUR 20 000 for a period of maximum 5 years.

Since October 2020, MPR is open to all owners, regardless of their income. However, the aid intensity varies according to household income (for modest households, the aid may go up to 90% of the amount of estimated works). In addition, MPR may benefit owners who rent their apartment/house to a tenant.

The grant may also support works carried out in the common areas of a condominium with “MPR copropriétés”: this is a one-off aid paid to the syndicate of co-owners to finance the overall renovation works with a minimum energy gain of 35%. All condominiums consisting of at least 75% of houses (i.e. not undertakings) are eligible to this MPR, with a ceiling of EUR 3 750 per dwelling. A bonus may be allocated for condominiums with F or G labels (up to EUR 500 per dwelling), as well as for condominiums qualified as “fragile” or located in urban areas under renewal (up to EUR 3 000 per dwelling).

The level of aid varies according to the energy savings obtained by the renovation works. In order to support the most energy-intensive homes to meet the ambitions set by the Energy and Climate Law adopted in 2019, an additional bonus to MPR shall benefit owners who undertake renovation works to bring their home out of the status of energy sieves (labels F and G). Another bonus will be distributed to owners who carry out renovations that allow the home to reach the most efficient labels (A or B). These bonuses shall reach EUR 1 500 for the poorest households, EUR 1 000 for middle-income households, and EUR 500 for the wealthiest ones. In addition, in order to incentivise more efficient energy renovation (i.e. beyond renovation “gestures”), the measure provides the creation of a global renovation aid subject to the achievement of at least 55% of energy savings: the envelope shall vary between EUR 3 500 and EUR 7 000 for middle to high income households.

Overall, the energy renovation works carried out in private housing has an objective to achieve at least 30% of energy savings on average.

Investment 2 (C1.I2): Energy renovation and major rehabilitation of social housing

This measure consists in supporting social housing organisations (“offices HLM - Habitation à Loyer Modéré” are offices in charge of low-income housing) and local authorities operating social housing in order to support deep renovation of buildings. The ambition is to reach highest standards such as BBC 3 renovation label, and gradually eliminate energy sieves. The grant shall be allocated provided that existing schemes (such as écoPLS and CEE 4 ), which may be combined with this new aid, are not sufficient to finance the operations of renovation.

The measure shall also deploy industrial solutions for energy renovation in social housing buildings in order to achieve zero or positive net energy balance.

First operations are expected to start in Q2 2021, and the financial envelope shall be allocated by State services at regional and local levels, on the basis of a survey identifying the needs. The selection of projects shall be done either through a call for projects launched in 2020 or through subsidies managed by decentralized State services or local authorities. Operations are intended to be committed in 2021 and 2022, and to be completed by the end of 2024.

Investment 3 (C1.I3): Thermal renovation of public buildings

The renovation works of public buildings have to comply with the decree adopted in application of article 175 of the ELAN Law 5 , which imposes a reduction in energy consumption by 40% by 2030 (compared to 2010) to tertiary buildings. For public buildings belonging to the State, two types of calls for projects were organised:

·One concerning higher education and research buildings and universities, which has been launched and is supervised by the Ministry of Higher Education, Research and innovation;

·Another for all other buildings belonging to the State or its operators, which has been launched and is supervised mainly by the DIE (Direction de l’Immobilier de l’Etat).

The first two calls for projects were launched in autumn 2020, and more than 4 000 projects have been selected in December 2020.

For buildings belonging to local and regional authorities, specific mechanisms are in place:

·For buildings owned or operated by regional authorities (mainly high schools), “credit delegations” shall be allocated by the State, and the regions shall be in charge of project selection;

·For buildings belonging to infra-regional authorities 6 (mainly schools and primary colleges), investment grants shall be allocated by the State.

The projects are selected based on two main criteria: the maturity (and rapid implementation) and on the energy performance and impact on energy consumption, with the objective to achieve at least 30% of energy savings on average. For all public buildings, the objective is to have all contracts notified by the end of 2021, and completed by the end of 2024

Investment 4 (C1.I4): Energy renovation of very small enterprises (VSEs) and small and medium sized enterprises (SMEs)

This investment is part of a plan launched by the government in June 2020 to accompany very small and medium-sized enterprises in the ecological transition. To support thermal renovation of their buildings, two support mechanisms are in place under this investment:

The main support scheme is a tax credit amounting to 30% of the expenses of eligible actions (such as insulation of roofs, attics, walls; collective solar water heater and heat pumps 7 ), and capped at EUR 25 000 per undertaking. This scheme is open for expenses incurred from 1 October 2020 until 31 December 2021. The tax credit is charged against income tax or corporate tax due by the taxpayer for the calendar year in which the eligible expenditure was incurred (i.e. 2020 or 2021).

The second support scheme shall finance accompanying measures to support artisans, small traders and self-employed people in their renovation works. The envelope shall be spent through Chambers of trades and crafts (CMA) and Chambers of Commerce and Industry (CCI), in four steps:

·Awareness: this step aims to make business leaders aware of the challenges of the energy renovation of buildings in the context of ecological transition; this action shall include a national communication campaign and local actions, in conjunction with local authorities and professional organizations.

·Diagnosis: an energy audit shall be carried out by an advisor from the CMA or the CCI, in order elaborate an action plan to start renovation works, on the basis of the ecological maturity of each company.

·Implementation: an expert shall help implementing the action plan through technical and financial assistance (such as setting up the grand applications).

·Promotion: actions undertaken by companies in the field of renovation of buildings shall be promoted to different audiences, such as consumers, companies and local authorities.

A.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number

Measure

Milestone / Target

Name

Qualitative indicators (for milestones)

Quantitative indicators (for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

1-1

C1.R1

Housing policy

Milestone

Reform of the APL (« aides personnelles au logement »)

Entry into force

Q1

2021

Entry into force of the legislative changes to review the calculation modalities of APL to reflect current income of the households.

1-2

C1.R1

Housing policy

Milestone

Reform of the Pinel / PTZ schemes

Entry into force

Q1

2023

Entry into force of the legislative changes to the Pinel tax credit to improve its efficiency in view of increasing housing offer in areas where the market in under strain, and adoption and entry into force of the legislative changes to the PTZ scheme.

1- 3

C1.R2

Revised thermal regulation RE2020

Milestone

Revision of the thermal regulation RE2020

Entry into force

Q1

2022

Entry into force of legislative changes included in the new RE2020 in order to reduce GHG emissions of new constructions, improve the energy performance of new buildings and adapt new buildings to climate change.

1- 4

C1.I1

Energy renovation of private buildings

Target

Number of MPR validated

Number

0

400000

Q4

2021

Number of households which have been granted a MPR.

1- 5

C1.I1

Energy renovation of private buildings

Target

Number of MPR validated

Number

400000

700000

Q4

2022

Number of households which have been granted a MPR.

1- 6

C1.I2

Energy renovation of social housing

Target

Number of dwellings within the category of social housing receiving a grant for renovation

Number

0

20 000

Q4

2021

Number of dwellings within the category of social housing receiving a grant for renovation, with an objective of achieving at least 30% of energy savings on average.

1- 7

C1.I2

Energy renovation of social housing

Target

Number of dwellings within the category of social housing receiving a grant for renovation

Number

20000

40000

Q4

2022

Number of dwellings within the category of social housing receiving a grant for renovation, with an objective of achieving at least 30% of energy savings on average.

1- 8

C1.I3

Energy renovation of public buildings

Target

Number of renovation projects of public sites belonging to the State, for which the renovation works contract has been notified

Number of projects

0

2900

Q4

2021

Number of renovation projects of public sites belonging to the State, for which at least one renovation works contract has been notified, with an objective of achieving at least 30% of energy savings on average.

1- 9

C1.I3

Energy renovation of public buildings

Target

Number of public buildings belonging to local and regional authorities (LRAs) which have been the subject of a subsidy notification from the State or the Regional Council for energy renovation works

Number of buildings subsidised

0

1954

Q2

2022

Number of public buildings belonging to local and regional authorities (LRAs, including municipalities and grouping of municipalities) that have been the subject of a subsidy notification from the State or the Regional Council for energy renovation works, with an objective of achieving at least 30% of energy savings on average.

1- 10

C1.I3

Energy renovation of public buildings

Target

Number of m² of floors of public sites belonging to the State where the energy renovation works have been completed

Number of square metres (in million)

0

20

Q4

2023

Number of m² of floors of public sites belonging to the State where energy renovation has been completed, with an objective of achieving at least 30% of energy savings on average.

1- 11

C1.I3

Energy renovation of public buildings

Target

Number of m² of floors of public sites belonging to the State where the energy renovation works have been completed

Number of square metres (in million)

20

28,75

Q4

2024

Number of m² of floors of public sites belonging to the State where energy renovation has been completed, with an objective of achieving at least 30% of energy savings on average.

1- 12

C1.I3

Thermal renovation of public buildings

Target

Number of schools, colleges or high schools where the energy renovation works have been completed

Number

0

681

Q4

2024

Number of schools, colleges or high schools where the energy renovation works have been completed, with an objective of achieving at least 30% of energy savings on average.

1- 13

C1.I4

Energy renovation of VSEs and SMEs

Target

Number of companies benefitting from the tax credit and the support schemes

Number

0

5000

Q4

2023

Number of companies benefiting from the tax credit for the energy renovation of VSEs and SMEs buildings of tertiary use and/or support from chambers of trade and crafts (CMA) and chambers of commerce and industry (CCI).

   

B. COMPONENT 2: Ecology and biodiversity

France faces substantial investment needs to meet the Sustainable Development Goals in the years to come, in particular on biodiversity, water quality and circular economy. The legal framework is generally in place to transition to a greener and more resilient economy, but France needs to implement it, in particular by supporting investments enhancing biodiversity, reducing pollution and artificialisation of soils, improving recycling and reuse of materials and resources.

In this context, the planned investments under this component 2 of the French recovery and resilience plan are aimed at reducing the ecological impact of current production and consumption modes, by preserving biodiversity, decarbonizing industrial production processes, developing the circular economy and accelerating the agricultural transition. Such investments are supported by the reform “Climate and Resilience” Law based on the Climate Convention whose objective is to contribute to the GHG emissions reduction target for 2030. In addition, the decrees implementing the circular economy Law enacted in 2020 shall enter into force in 2022.

This component is mainly related to the recommendation (CSR 3, 2020) on focusing investments on the green transition, and to a lesser extent to the recommendation (CSR 3, 2019) on energy efficiency. This component contributes to environmental preservation and climate adaptation, therefore strengthening ecological, social and economic resilience.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

B.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C2.R1): Climate & Resilience Law

The “Climate and Resilience” Law shall be promulgated by the beginning of 2022. Some measures that have direct applicability shall enter into force immediately after promulgation, while other measures are expected to come into force in a deferred manner, within a period determined by the legislator. Based on proposals made by the Citizens’ Climate Convention, the Law shall provide for climate and environmental measures that shall contribute to the GHG emissions reduction target for 2030. The Law is expected to contribute to securing the achievement of between half and two-third of the way to be covered between emissions in 2019 and the target for 2030, thanks to a reduction estimated between 56 and 74 million tonnes of CO2 equivalent in total. The Law shall cover the following six elements, covering the entire scope of the economy:

·“Consuming”: the Law shall include measures to change consumption patterns through information and the deployment of less carbon-intensive products and services, and to provide incentives to reduce overconsumption through advertising.

·“Producing and working”: the Law shall include measures to support the transition of industrial and energy production models towards low-carbon solutions, strengthen the protection of ecosystems via better supervision of industrial activities, and anticipate changes in the ways of working.

·“Moving”: the Law shall include measures to reduce emissions from all means of transport, through incentives and financial support to the sectors concerned, as well as by defining a stable regulatory framework.

·“Living”: the Law shall include measures to change the way of conceiving urban planning and change urban life styles. It shall contain measures to speed up the renovation of thermal sieves, as well as measures to halve the rate of artificialisation of soils.

·“Feeding”: the Law shall include measures to support the greening of agriculture and the development of new eating habits and agricultural practices, in order to reduce its impact on GHG emissions.

·“Strengthening the judicial protection of the environment”: the Law shall include measures to prevent and punish more firmly and more effectively damage caused to the environment.

In 2025, an implementing decree shall enter into force in order to create low emission zones in agglomerations with more than 150 000 inhabitants 8 by prohibiting access to vehicles with Crit’Air stickers 3, 4 and 5 9 , thus improving air quality in cities and contributing to the GHG emissions reduction.

Reform 2 (C2.R2): Law on circular economy

The Law adopted on February 10, 2020 to tackle waste and promote the circular economy aims to operate a change of model defining a new economic framework that facilitates valuation rather than waste disposal, and to create the conditions for a collection of close to 100% of recyclable waste.

The reform concerns the adoption of implementing acts (“decrees”) deriving from the 2020 Law, which shall enter into force in 2022:

·Decree establishing Extended Producer Responsibility scheme for construction and public works materials waste;

·Decree establishing the minimum rates of incorporation of recycled raw materials into specific products before authorization to be placed on the market, in order to increase recycling and achieve the objectives set by the Law (art. 61);

·Decree on the proportion of reused packaging to be placed on the market every year in order to increase the share of reused packaging on the market compared to single-used packaging, and therefore limit waste (art. 67 of the Law).

Investment 1 (C2.I1): Decarbonisation of industry

The objective of this investment is to contribute to the decarbonisation of the industrial sector, responsible for around 21% of GHG emissions in France. The Recovery and Resilience Facility shall be used to reduce energy consumption of industrial companies (including energy-intensive industries) and/or to invest aiming at reducing GHG emissions.

The funds shall be allocated in two ways:

·Grants shall be provided after calls for projects conducted by ADEME (Agency for ecological transition), for larger projects representing an investment above EUR 3 000 000. These projects shall cover either energy efficiency investments or investments to improve industrial processes in order to reduce GHG emissions. There is no pre-determined envelope between these two types of projects, as the selection shall be made according to various criteria including performance in terms of GHG emissions compared to the requested support.

·These calls for projects are supplemented by one-stop support distributed by the public agency ASP (“Agence de Services et de Paiement”) for smaller and more standardized energy efficiency improvement projects (with an investment amount of less than EUR 3 000 000), based on a list of eligible equipment defined by decree.

The terms of reference for upcoming calls for projects shall require that investments made within EU Emission Trading System (ETS) installations shall enable to decrease CO2 emissions below the benchmark included in the ETS Directive 10 , in a way that ensures that the measure complies with the ‘do no significant harm’ principle of Regulation (EU) 2021/241.

Investment 2 (C2.I2): Urban densification: sustainable construction

This measure aims to help municipalities increase housing density, in areas affected by the housing shortage. The support to dense housing operations shall help limiting urban sprawl and preserving biodiversity and agricultural land. Furthermore, the new thermal regulation RE2020 (cf. reform 2 of this component), whose objective is to reduce the carbon impact of new buildings and to increase their energy performance, shall apply to these operations.

A flat-rate aid shall be allocated to municipal authorities, provided that several conditions are met: (i) compliance with the obligations imposed by the “Solidarity and Urban Renewal Act” of 2000, by which social housing must represent 20% of the residential stock; (ii) the construction programme must include at least two dwellings exceeding certain density thresholds and subject to previous urban authorization.

The density thresholds, expressed in square meters of floor areas constructed per square meters of land area, result from cross-analysis combining population criteria (size and density in the municipality or grouping of municipalities) and the typology of the housing stock (such as built density, vacancy, proportion of social housing and second homes and average household size).

Investment 3 (C2.I3): Urban densification: brownfields

This measure aims to rehabilitate and recycle brownfield and wasteland sites which represent a significant source of lands, in order to contribute to the trajectory of the “zero net artificialisation” by 2050 set by the French government, with the objectives of controlling urban sprawl and supporting urban revitalization and consequently, limiting the consumption of natural areas.

Beneficiaries of the “brownfield fund” must be the owners of the site: they may be municipalities, local public institutions designated by the local authorities, public operators of the State, public local companies such as SEM (“sociétés d’économie mixte”), social landlords, or private companies with the agreement of the competent authority on urban planning.

The projects are selected by the State through regional calls for tenders, with the help of technical services (both at national and regional levels). Once selected a grant agreement shall be signed between the State and the beneficiary.

Two categories of projects may be supported by the brownfield fund:

·Recycling of brownfields: industrial (without depollution operations), commercial, administrative brownfields, old degraded islets, in the framework of urban renewal or re-location of productive activities;

·Recycling of urbanized land: requalification of old blocks for housing and commerce, revitalization or transformation of economic zones at the entrance to towns, rehabilitation or diversification of residential areas, renovation of shops.

In addition, an envelope shall be devoted to the development of land knowledge tools in order to support local authorities in the inventory of wastelands and in the operational implementation of recycling operations.

Investment 4 (C2.I4): Biodiversity

This measure aims to support local authorities, associations and other natural areas managing authorities to invest in biodiversity protection and restoration projects, where the ecosystems are in danger. Two types of measures shall be funded under the French Recovery and Resilience Plan:

·Ecological restoration shall be supported by four types of investments:

oThe six Water Agencies shall implement projects aiming at preserving water resources, restoring biodiversity and ecological continuity of aquatic environments, maintaining ecosystems; the funds shall be allocated either through calls for projects or in a one-stop-shop logic, within a framework validated by the Agency’s Board of Directors and in application of the agreement signed with the Ministry of Ecological Transition.

oEcological continuity for fishes (fish ladders) at the Rhinau and Marckolsheim dams on the Rhine River. This investment is an engineering and infrastructure project that shall be implemented in partnership with EDF (“Electricité de France”, the French electricity incumbent), local authorities, national experts, the Rhine-Meuse water agency and the French Office for Biodiversity. It is a cooperation project with countries bordering the Rhine.

oThe French Office for Biodiversity (OFB) shall manage several types of projects: biodiversity atlas at municipal levels, actions in favour of the preservation and restoration of biodiversity implemented by “project leaders” selected after calls for tenders.

oThe State shall pilot actions for ecological restoration in metropolitan France and in the DOM (“Départements d’Outre Mer”). Projects shall be selected either through calls for projects or in a one-stop-shop logic within the framework established by the Ministry of Ecological Transition.

·Support to protected areas:

oThe State shall pilot actions for protected areas in metropolitan France and in the DOM. Projects shall be selected either through calls for projects or in a one-stop-shop logic within the framework established by the Ministry of Ecological Transition.

oThe French Office for Biodiversity (OFB) shall support protected areas within natural marine parks.

oThe 11 national parks in France shall invest in the preservation of natural, cultural and landscape heritage, the development of knowledge on biodiversity and the education on the environment and sustainable development.

In 2021 and 2022, projects in the fields of ecological restoration and protected areas shall be identified either through calls for tenders organised by the operators (such as water agencies, OFC, etc.), and first commitments shall start before 31 December 2021. At least 700 projects under this component shall be completed by 31 December 2023.

Investment 5 (C2.I5): Prevention of seismic risks in the DOM (Antilles)

This measure aims to carry out earthquake-resistant reinforcement works of priority public buildings in the “Antilles” (e.g. Martinique and Guadeloupe), taking into account resilience to cyclones as well. Three types of public buildings are targeted:

·Crisis management buildings, prefectures and sub-prefectures;

·Priority hospitals;

·Schools, high schools and colleges.

The selection of buildings is made by the State after submission of application files by 31 December 2020. The legal commitment shall be finalised by 31 December 2021, and works shall be started by 31 December 2023, for at least 15 buildings.

Investment 6 (C2.I6): Secure water networks

The objective of this measure is to achieve the renovation and rehabilitation of 450 kilometres of networks in France, including the DOM, by 31 December 2022.

This measure shall finance the following three sub-measures (the first two ones shall take place in metropolitan France, and the last one shall concern only the DOM):

·Water agencies shall support investment in the modernization of clean water and sanitation distribution networks. They shall also invest in the upgrading of wastewater treatment plants and the disconnection of rainwater discharges from the networks.

·Investments in the sanitization of more than 35,000 tonnes of sewage sludge, in order to enable spreading.

·Priority investments to upgrade water and sanitation networks, within the framework of the DOM Action Water Plan.

For the first two sub-measures, projects shall be selected by the six Water Agencies, either through dedicated calls for projects or in a one-stop-shop logic, within the framework validated by the Agency’s Board. The agencies shall also be responsible for the operational implementation of the projects. Local authorities facing the impossibility of spreading the sludge from sewage treatment plants must apply to the Agency on which they depend to benefit from the assistance and financial support.

In the DOM, the allocation shall be distributed between the State Directorates of the Environment, Planning and Housing (in particularly for preliminary studies and technical assistance in Guadeloupe and Martinique) and the French Biodiversity Office (OFB), which is in charge of funding the DOM Water Action Plan. Projects shall be selected according to this Plan.

Investment 7 (C2.I7): Modernisation of sorting centres

Sorting and recycling waste is a key objective of the Law on energy transition and green growth (LTECV) adopted in 2015, which aims at reducing the amount of landfill waste by 50% by 2025.

This measure tackles the challenges of sorting and recycling all types of waste, in particular household waste as well as hospital waste. Aid for investments shall be allocated for:

The support of waste recycling, through an investment aid to local authorities or any institution open to the public, in order to modernize sorting centers (public and private ones) and deploy selective sorting installations in public areas;

The acquisition of equipment to speed-up the sorting at source, collection and valorization of bio-waste and household waste (e.g. into renewable biogas or quality fertilizer) while making sure that this shall not foster mechanical biological treatment plants;

The improvement of the treatment of infectious risk waste in hospitals thanks to “trivialisers”.

This measure shall be implemented through calls for projects or a financing window set up by ADEME (Agency for ecological transition). The objective is to achieve the modernization of 32 sorting centres by 2026. The other investments for bio-waste/household waste, and hospital waste treatment, are not yet quantified.

Investments shall be committed in 2021 and 2022, and shall be completed by the end of 2024.

Investment 8 (C2.I8): Recycling and reuse

This measure has the following three objectives: (i) support the reduction in the use of plastic (especially single-use), (ii) promote the incorporation of recycled plastic and (iii) accelerate the development of repair and reuse (of plastics), in line with the anti-waste Law for a circular economy adopted in 2020.

Two types of interventions shall be supported:

·Support to reuse or repair plastic or non-plastic products and activities to reduce plastic packaging:

oDevelopment and modernisation of recycling facilities (“recycleries”);

oSupporting businesses in order to replace plastic packaging (including packaging sector itself);

oIndustrialization of reusable and recyclable packaging solutions;

oAcquisition of alternative solutions to the use of plastic (particularly single-use) or adaption to their use (washing equipment, adaptation of production tools), for instance in the collective catering;

oExperimentation of pilot projects in alternative solutions to the single use plastics.

·Support for plastic recycling:

oStudies and feasibility tests for the preparation, recycling or incorporation of recycled plastic, in particular for undertakings that do not already integrate them;

oInvestments in the adaptation of businesses equipment to prepare, recycle or integrate more recycled plastics in their process;

oAid for the supply of recycled plastic material through direct financing to plastic processor companies in order to support demand.

Aid shall be managed by the Agency for ecological transition (ADEME) through the “circular economy fund” and the “decarbonisation of industry fund” for measures related to the support to recycled plastic incorporation in businesses processes, and projects supported shall be selected by calls for projects or by the corresponding financing window of ADEME. The measure shall enable to avoid the production of 275 000 tons of plastic cumulatively.

These investments shall be committed by the 31 December 2022 and shall be completed by 31 December 2024.

Investment 9 (C2.I9): Plant protein plan

This measure is part of an overall plan on plant proteins, which aims to reduce the dependency of agriculture on inputs such as animal feed and nitrogen fertilisers. It provides investment support to agricultural holdings and downstream structures, notably for reinforcing and fostering new agricultural supply chains dedicated to plant proteins.

The measure shall provide investment support for:

·Equipment in protein-rich crop farms;

·The restructuring of the plant protein supply chain, including investments in plant protein collection and processing companies (such as silos, storage units, seed pressing units, lucerne dryers and optical triers).

In January 2021, FranceAgriMer, a public body with responsibilities for the agriculture and fisheries sectors, has launched the first calls for projects. By 31 December 2022, the last financial commitments shall be made for at least 1 200 projects.

Investment 10 (C2.I10): Forests

The French forest-wood sector makes it possible to offset around 20% of French CO2 emissions by carbon storage in forests, in wood products and by replacing fossil fuels and more energy-intensive materials. Climate change, however, affects the forest stands in France that have become degraded or vulnerable for pests, droughts and fires. In order to preserve the multiple environmental services provided by forests, ensure their diversity and sustainability and guarantee supplies to the French forest-based industry, this measure aims to mobilise funding for public and private forest owners to take on a dynamic sustainable forest management.

Three types of intervention are covered:

·Improvement of forests stands of low economic and environmental quality;

·Restoration of the forests seriously affected or destroyed by bark beetles in Eastern France (mainly in the Grand-Est and Bourgogne-Franche-Comté regions);

·Adaptation of forest stands that are vulnerable to the impacts of climate change.

The measure aims to cover at least 30 000 ha by end Q1 2023. Since 19 February 2021, aid applications may be lodged. Payments shall be made until 31 December 2024.

B.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support



Sequential Number

Measure

Milestone / Target

Name

Qualitative indicator for milestones

Quantitative indicator for target

Time

Description of each milestone and target

Unit

Baseline

Goal

Quarter

Year

2-1

C2.R1

Law Climate & Resilience

Milestone

Law Climate & Resilience

Promulgation of the Law and entry into force of provisions with direct applicability

Q2

2022

Promulgation of the Law and entry into force of those provisions in the law that have direct applicability in order to transpose into law a number of the recommendations of the Citizens’ Climate Convention on the following six topics: consuming, producing & working, moving, living, feeding and strengthening the judicial protection of the environment.

2-2

C2.R1

Law Climate & Resilience

Milestone

Law Climate & Resilience – Implementing Act

Entry into force

Q4

2025

Entry into force of a decree creating low GHG emissions zones in cities above 150 000 inhabitants.

2-3

C2.R2

Law on circular economy

Milestone

Decrees implementing the anti-waste and circular economy Law

Entry into force

Q1

2022

Entry into force of the following decrees and decisions:

Decision on the establishment of the building waste and building materials industry on 1 January 2022

Decree for the minimum rates of incorporation of recycled raw materials (Article 61 of the AGEC Law)

Decree on the proportion of reused packaging to be placed on the market (Article 67 of the AGEC Law)

2-4

C2.I1

Decarbonisation of industry

Target

Greenhouse gas emissions avoided

MtCO2eq

(million tonnes of CO2 equivalent)

0

3,5

Q2

2021

Avoided GHG emissions throughout the life of the project, as calculated in comparison of the “before investment” situation, and defined by the operator in the reply to the call for tenders, with the objective that investments made within ETS installations shall enable to decrease CO2 emissions below the benchmark included in the ETS Directive.

2-5

C2.I1

Decarbonisation of industry

Target

Greenhouse gas emissions avoided

MtCO2eq

(million tonnes of CO2 equivalent)

3,5

5

Q4

2022

Avoided GHG emissions throughout the life of the project, as calculated in comparison of the “before investment” situation, and defined by the operator in the reply to the call for tenders, with the objective that investments made within ETS installations shall enable to decrease CO2 emissions below the benchmark included in the ETS Directive.

2-6

C2.I2

Urban densification: sustainable construction

Target

Number of municipalities benefiting from the aid

Number

0

1200

Q4

2021

Number of municipalities benefiting from the aid on sustainable construction in urban strained areas.

2-7

C2.I3

Urban densification: brownfields

Target

Number of projects for which a grant has been signed for recycling operation of wasteland or of urbanized area

Number

0

90

Q1

2022

Number of projects for which the grant agreement has been signed, either for a recycling operation of a wasteland, or for a recycling operation of urbanized land.

2-8

C2.I3

Urban densification: brownfield

Target

Number of projects for which a grant has been signed for recycling operation of wasteland or of urbanized area

Number

90

200

Q1

2023

Number of projects for which the grant agreement has been signed, either for a recycling operation of a wasteland, or for a recycling operation of urbanized land.

2-9

C2.I4

Biodiversity

Target

Number of projects supported in the fields of ecological restoration and protected areas

Number

0

700

Q4

2022

Number of projects related to ecological restoration, and preservation of biodiversity in protected areas.

2-10

C2.I5

Prevention of seismic risks in the DOM

Target

Number of buildings concerned – seismic risks in the DOM

Number

0

15

Q4

2023

Number of public buildings (such as crisis management buildings, or prefectures and sub-prefectures, or priority hospitals, or schools, high schools and colleges) in the DOM in which anti-seismic works have been started.

2-11

C2.I6

Secure water networks

Target

Number of linear km of drinking water networks and sanitation networks supported

Km

0

450

Q4

2022

Number of kilometres of drinking water networks or sanitation networks for which renovation works have been started.

2-12

C2.I7

Modernization of sorting centers

Target

Number of contracts signed for the modernization of sorting centers

Number

0

32

Q4

2022

Number of contracts signed for the modernization of sorting centres.

2-13

C2.I7

Modernization of sorting centers

Milestone

Investment in waste sorting and collection, and in medical waste treatment

Communication of the list of beneficiaries

Q4

2022

Finalisation of the call for proposals and support schemes and selection of recipients for the following schemes:

·to support investments in away-from-home (AFH) waste sorting and collecting waste;

·to support biowaste sorting, collecting and recovering;

·to support investments for equipments for disinfecting infectious medical waste.

2-14

C2.I7

Modernization of sorting centres

Target

Number of sorting centres modernized

Number

0

32

Q4

2025

Number of existing public and private sorting centres that have completed their modernization works.

2-15

C2.I8

Recycling and reuse

Target

Quantity of plastic materials avoided

Tonnes

0

275000

Q4

2025

Cumulative effective quantity of plastic materials avoided, through recycling or integration into industrial processes.

2-16

C2.I9

Plant protein plan

Target

Number of projects that shall receive fund from the “protein plan” in order to invest in protein plant production

Number

0

1200

Q1

2022

Number of projects that shall receive funds from the “protein plan” in order to invest in protein plant production, after the selection by the calls for tenders.

2-17

C2.I10

Forests

Target

Surface area of forests for which a grant has been committed in order to improve, adapt, regenerate or reconstitute the forest

Hectare

0

30000

Q1

2023

Surface area of forests for which a grant has been committed in order to improve, adapt, regenerate or reconstitute the forest.

C. COMPONENT 3: Infrastructure and green mobility

The transport sector is one of the main CO2 emitters in France, accounting for 38% of total emissions in 2017. Road transport is responsible for 96% of these emissions, more than half of which come from private vehicles. Transport infrastructures play a key role in the effective implementation of the green transition. It is through their maintenance and development that ecological alternatives to carbon-emitting practices may be made available to users. Measures under this component of the French recovery and resilience plan focus on the development of public transports (metro, tram, bus) and a renovation and improvement of the national railway network for passengers and freight. The component also includes measures to renew the administration’s fleet of cars with electric or hybrid vehicles, to improve sustainability of harbours and facilitate the green transition in rural areas.

The component also cover two reforms related to mobility and green budgeting to increase the transparency on the environmental impact of the national budget.

These investments and reforms contribute to addressing the country-specific recommendations addressed to France in the past two years, on the need to “focus investment-related policy on […] renewable energy, energy efficiency and interconnections with the rest of the Union” (CSR 3, 2019) and to “Ensure the effective implementation of measures supporting the liquidity of firms, in particular for small and medium-sized enterprises. […] Focus investment on the green […] transition, in particular on, sustainable transports, clean and efficient production and use of energy, energy infrastructures as well as research and innovation.” (CSR 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

C.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C3.R1): Mobility law (‘Loi d’Orientation des Mobilités’)

The mobility law aims at a deep transformation of transport and mobility with the objectives of improved daily service, meeting the needs of the entire population and of an accelerated decarbonisation of the sector. The law contains a comprehensive package of policy instruments on governance, regulations, and investment plans.

A number of secondary legislations linked to the Mobility law shall be implemented during the RRF timeframe. First, a decree entered into force in 2020 setting out the conditions under which journeys may entail financial allocations to drivers who offered car sharing in the absence of passengers. Second, the regulations shall be modified in 2021 to allow the transfer of the management of the local rail network to the Regions. Third, the government shall revise and update the financial and operational programming of the State investments in transport infrastructure by 31 December 2023, as foreseen in the law.

Reform 2 (C3.R2): Green Budgeting

The publication of a Green Budget aims to set up a standardized and comprehensive information framework targeted to Parliament and civil society on the environmental impact of the State Budget.

France published, along with its 2021 budget law, a green budget methodology where each expenditure of the State budget is classified according to its impact on each of the six objectives defined in the Regulation (EU) 2020/852 11 (the “Taxonomy Regulation”): climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.

The revenues are classified as environmental tax according to the Eurostat definition "a tax whose base is a physical unit (or an approximation of a physical unit) of something which has a specific and proven negative impact on the environment." 12

For the 2022 budget, a new green budget shall be published. It shall draw on the already established practices, and improve them by implementing a new methodology for taking into account operating expenditures.

Investment 1 (C3.I1): Support to the railway sector

To reach the objective of carbon neutrality by 2050, France aims to increase the use of railway as an alternative to road transport. The measure aims at improving and modernising the railway network.

A first part of the investment shall be undertaken by the Agency responsible for investing in transport infrastructure (AFITF). This public agency is mandated by the government to invest on preselected transport infrastructure projects. The measure shall finance the renovation of local railway lines undertaken in cooperation with the State and the regions. It shall also contribute to the renovation of freight lines and embedded logistic platforms. The investment will mostly take place in 2021 and 2022.

A second part of the investment shall be used to recapitalise the French national railway company SNCF. The resources shall be directly transferred to SNCF Réseau, the network operator, which is part of the SNCF group. The implementation of the measure will need to outline how compliance with transparency requirements and State aid rules is ensured, with particular reference to accounting separation to avoid cross-subsidisation between economic and non-economic activities of SNCF Réseau. The investment deployed between 2021 and 2023 shall be divided into three measures.

The first measure aims at renovating the national railway network by means of heavy investment to replace tracks, crossing bars and ballast. Additionally, investment shall be made to replace switches, catenaries and signalisation signs.

The second measure aims at improving the security and reliability of the network. It shall finance research and development and products and equipment to replace glyphosate weed killer by alternative products less harmful to the environment. Additionally, the measure shall finance the renovation of tunnels.

The third measure shall finance the complete renovation of local railway lines (such as tracks, rails, ballast and rail devices).

Investment 2 (C3.I2): Support to demand for clean vehicles (automobile plan)

This investment aims to support the demand for clean vehicles, mainly from households. The measure includes an “ecological bonus” for light vehicles to support the purchase of an electric, hydrogen or plug-in hybrid vehicle with CO2 emissions less than or equal to 50 g/km. The amount of the bonus shall depend on the type of vehicle (electric, plug-in hybrid, hydrogen), the type of beneficiary (household or business) and the price of the vehicle (higher bonus for cheaper cars).

The level of the bonus shall gradually decrease from July 2021 as the competitiveness of these vehicles increases compared to their thermal alternatives. The measure also includes the same type of bonus for heavy duty vehicles: a purchase bonus of EUR 50 000 for trucks and EUR 30 000 for electric or hydrogen buses and coaches is introduced from January 2021.

Investment 3 (C3.I3): Daily mobility: development of public transport

The measure aims at financing the development of rail infrastructure for daily mobility in urban areas, to increase their attractiveness. The measure shall focus on the Ile de France region around Paris, to solve recurrent congestion issues. It shall also participate to the creation of new urban metro lines in large cities in the regions. Eligible projects are mostly based on electric traction, which shall participate to decarbonisation of transport. The measure shall support different steps of the procedure, from necessary ex-ante studies to actual works.

The measure shall notably co-finance the improvement of urban train lines (RER E, B and D), the deployment of tram lines (T3, T1) and high level services buses (TZ 2 and 3). In the regions, the measure shall support the creation of a new metro line in Toulouse. The investment will take place between 2021 and 2026.

Investment 4 (C3.I4): Acceleration of work on transport infrastructure

The purpose of the measure is to modernise existing transport infrastructure to adapt it to new means of transport, local needs and green transition. It shall facilitate the integration of carpooling and electric vehicles as alternative to private cars. It shall also increase digitisation and integration of new technologies for the functioning and surveillance of the river infrastructure to make it a credible alternative to road freight transport.

The measure shall be implemented mainly through the French Transport Infrastructure Financing Agency (AFITF), a public agency mandated by the government to invest on preselected transport infrastructure projects. Investment shall concern several projects. It shall finance the installation of new electric charging points on national roads and high speed roads. Priority shall be given to public transport and carpooling with building of reserved lanes and installation of devices to control them, as well as creation of low emission zones. The renovation of river networks, in particular locks and dams is also foreseen, together with the modernisation of the digital management system for maritime affairs and the CROSS network (Regional Operational Centres for Monitoring and Rescue).

Investment 5 (C3.I5): Greening of the State’s fleet

The measure aims at renewing the car’s fleet of three administrations: the police and gendarmerie (Ministry of the Interior), the general directorate of customs (Finance Ministry), and the penitentiary administration (Justice Ministry). The combined fleets of these three bodies represent the majority of State’s vehicles but at the same time show an old age, high mileage, and low renewal rate. The fleet’s greening plan for 2021 and 2022 prioritizes the purchase of clean vehicles (electric or plug-in hybrids). In total, the investment shall help purchasing 3833 clean vehicles for the Home affairs Ministry, 570 for the customs, and 530 for the Justice administration. The measure shall also support the purchase of recharging stations.

Investment 6 (C3.I6): Greening of harbours

Harbours are key assets of the French economy. The measure shall allow further investment in line with the requirement of the climate transition by supporting alternative fuel and cleaner vessels. The measure is divided into two sub-measures. It shall finance the installation of nine new electric connections to offer alternative fuel on docks to cruise ships using the Havre-Rouen-Paris dock network, passenger ships and container ships using the docks in Marseille and for containers ships using Pointe des grives dock in Martinique harbour by 2023. Additionally, it shall finance new vessels emitting lower emission for the vessels fleet of the department in charge of maritime affairs at the Ministry for Ecology.

Investment 7 (C3.I7): Strengthening the resilience of electricity networks and energy transition in rural areas

This measure aims at increasing the resilience of the electricity networks, with a focus on rural areas. The measure shall increase the quality of the electricity distribution system, in regions where renewables are mostly being developed and electric mobility is a key challenge.

The beneficiaries of the measure shall be the authorities organising the public distribution of electricity 13 .

The investment shall increase the budget line of the finance act (loi de finances) dedicated to rural electrification. The measure shall finance different sub-programs by 2023.

The first sub-program for “energy transition” and “development of innovative solutions” shall finance the energy transition in the rural areas by fostering renewables integration to the network, building storage facilities and electric charging infrastructure. It shall also accelerate the deployment of smart meters.

The second sub-program “climate incident” shall finance the repair works for parts of the electric network damaged by extreme weather.

The remaining investment shall be allocated to renewal of old electric cables and installations and increase network safety, currently lacking in rural areas.

C.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential number

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicator for milestones

Quantitative indicator for target

Time

Description of each milestone and target

Unit

Baseline

Goal

Quarter

Year

3-1

C3.R1

Mobility law

Milestone

Article 35.2 of Law No 2019-1428 of 24 December 2019 on mobility

Entry into force

Q3

2020

Entry into force of implementing decree of the Mobility Law covering the conditions under which journeys may entail financial allocation to drivers who offered car sharing in the absence of passengers (art 35.2 of the mobility law).

3-2

C3.R1

Mobility law

Milestone

Article 172 of Law No 2019-1428 of 24 December 2019 on mobility

Entry into force

Q2

2021

Entry into force of the measures to adapt the rules to ensure management transfers to the regions of the rail network of local interest, pursuant to Article 172 of Law No 2019-1428 of 24 December 2019 on mobility.

3-3

C3.R1

Mobility law

Milestone

Article 3 of Law No 2019-1428 of 24 December 2019

Establishment of the update

Q4

2023

Establishment of the update of the revised legislation updating the financial and operational programming of State investments in transport, as laid down in Law No 2019-1428 of 24 December 2019 on mobility pursuant to Article 3 of that law, before 30 June 2023.

3-4

C3.R2

Green budget

Milestone

Green budget with the Financing law

Publication by the Government

Q4

2021

Publication of a Green Budget along with the Draft Budgetary Law 2022, including an improved methodology for taking into account operating expenditures.

3-5

C3.I1

Support to railway

Milestone

Conclusion of the funding agreements

Adoption by the AFITF board

 

 

 

Q3

2021

Adoption by the AFITF board of the funding agreements.

3-6

C3.I1

Support to railway

Target

Switches

Number

0

272

Q1

2022

Number of new switches installed (in total).

3- 7

C3.I1

Support to railway

Target

Catenaries

Km

0

182

Q1

2022

Kilometres of new catenaries installed (in total).

3- 8

C3.I1

Support to railway

Target

Regenerated railway lines

Km

0

863

Q4

2022

Kilometres of railway lines regenerated (in total).

3- 9

C3.I1

Support to railway

Target

Tunnels

Meters

0

3305

Q4

2022

Meters of reinforced tunnels (in total).

3-10

C3.I1

Support to railway

Milestone

Environmental treatment of railways

Information to be provided by SNCF Réseau

Q4

2022

Replacement of the use of glyphosate by a more environmentally friendly alternative.

3- 11

C3.I1

Support to railway

Target

Local railways lines

Km

0

500

Q4

2023

Kilometres of renovated small local lines (in total).

3- 12

C3.I1

Support to railway

Target

Renovated freight lines

Km

0

150

Q4

2023

Kilometres of renovated freight lines (in total).

3- 13

C3.I1

Support to railway

Target

Local railways lines

Km

500

827

Q4

2025

Kilometres of renovated small local lines (in total).

3- 14

C3.I1

Support to railway

Target

Renovated freight lines

Km

150

330

Q4

2025

Kilometres of renovated freight lines (in total).

3-15

C3.I2

Support for the purchase of clean vehicles

Target

Ecological bonuses

Number

0

85000

Q1

2021

Number of ecological bonuses granted for light vehicles since June 2020.

3-16

C3.I2

Support for the purchase of clean vehicles

Target

Ecological bonuses

Number

0

127000

Q1

2022

Number of ecological bonuses granted for light vehicles in 2021.

3-17

C3.I2

Support for the purchase of clean vehicles

Target

Ecological bonuses

Number

0

1700

Q1

2022

Number of ecological bonuses granted for heavy vehicles since beginning of the ecological bonus programme (2018).

3-18

C3.I3

Daily mobility

Milestone

AFITF funding agreements

Adoption by the AFITF board

Q1

2021

Adoption by the AFITF board of the funding agreements.

3-19

C3.I3

Daily mobility

Target

Public transport reserved lanes

Km

0

20

Q4

2024

Number of kilometres of renovated of newly created public transport reserved lanes.

3-20

C3.I3

Daily mobility

Target

Public transport reserved lanes

Km

20

100

Q2

2026

Number of kilometres of renovated of newly created public transport reserved lanes.

3- 21

C3.I4 Acceleration of transport infrastructure works

Milestone

AFITF funding agreements

Adoption by the AFITF board

Q1

2021

Adoption by the AFITF board of the funding agreement.

3- 22

C3.I4 Acceleration of transport infrastructure works

Milestone

Signature by the ASP (l’Agence de Services et de Paiement) of the funding agreement for new charging stations

Adoption of the funding agreements by the ASP

Q4

2021

Signature by the ASP (l’Agence de Services et de Paiement) of the funding agreement for new charging stations.

3- 23

C3.I4 Acceleration of transport infrastructure works

Target

Charging stations

Number

0

1500

Q2

2023

Number of charging stations open to the public.

3- 24

C3.I4 Acceleration of transport infrastructure works

Target

Kilometres of reserved lanes completed

Km

0

20

Q2

2023

Kilometres of reserved lanes for public transport or carpooling finalised.

3- 25

C3.I4 Acceleration of transport infrastructure works

Target

Projects realised on waterways

Number

0

100

Q4

2024

Finalisation of the renovation and modernisation of projects for waterways, including locks and dams.

3- 26

C3.I4 Acceleration of transport infrastructure works

Milestone

Modernisation of the CROSS network and numerical system for the maritime affairs

Report evidencing the completion of the works

Q2

2023

Completion of the modernization of the CROSS network and numerical system for the maritime affairs.

3- 27

C3.I5

Greening of the State car fleet

Target

Number of electric and plug-in hybrid vehicles purchased by the French administration

Number

0

1291

Q2

2021

Electric and plug-in hybrid vehicles in total for Ministry of the Interior, Directorate General for Customs and Excise and Ministry of Justice (cumulative).

3- 28

C3.I5

Greening of the State car fleet

Target

Number of electric and plug-in hybrid vehicles purchased by the French administration

Number

1291

4200

Q3

2023

Electric and plug-in hybrid vehicles in total for Ministry of the Interior, Directorate General for Customs and Excise and Ministry of Justice (cumulative).

3- 29

C3.I6

Greening of harbours

Milestone

AFITF funding agreements

Adoption by the AFITF board

Q1

2021

Adoption by the AFITF board of the funding agreements.

3- 30

C3.I6

Greening of harbours

Target

New electrical connections on docks

Number

0

9

Q4

2022

Finalisation of installation of new electricity connection on docks on Havre-Rouen-Paris dock network, Marseille harbour and Pointe des grives dock in Martinique habour.

3- 31

C3.I6

Greening of harbours

Milestone

Purchase of vessels

Report evidencing the acquisition

Q2

2023

Completion of the acquisition of vessels for the maritime affairs services.

3-32

C3.I7 Strengthening the resilience of electricity grids

Milestone

Beginning of projects

Report evidencing the completion

Q4

2023

Beginning of the projects on the electricity grids in rural areas.

D. COMPONENT 4: Green energies and technologies

France has adopted a greenhouse emissions reduction target of 40% by 2030 compared to 1990 levels, and an objective to achieve climate neutrality by 2050. Reaching these objectives requires accelerating research and innovation to develop green technologies. Investing in key sustainable technologies shall contribute to put the French industry in a favourable position vis-à-vis emerging green markets.

In this context, this component of the French recovery and resilience plan features investments to support innovation in green technologies, under the fourth ‘Programme d’investissements d’avenir’ (PIA4), by defining strategies in key selected sectors related to the green transition, and supporting the industry to take steps to implement those strategies. This is complemented by a reform of the governance of the PIA to increase its efficiency, which is expected to bring benefits not only for the PIA4’s actions on green innovation, but also on other fields (e.g. digital innovation, innovative businesses, and support to teaching, research, valorisation and innovation ecosystems – see measures under components 6 and 9).

This component also contains two more targeted investment measures, (i) to promote the development of renewable and low-carbon hydrogen, as a way to support the decarbonisation of the economy, and (ii) to support the aeronautics industry to overcome present economic difficulties and to transition towards a low-carbon industry.

These measures contribute to the green transition objective and to reaching the climate target. They also contribute to addressing the country-specific recommendations addressed to France on the need to focus investment-related policy on the green and digital transition, in particular on sustainable transport, clean and efficient production and use of energy, and on research and innovation (CSR3, 2019 and CSR 3, 2020).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

D.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C4R1): Governance of the Programme d’investissements d’avenir (PIA)

This reform aims to improve the governance of the ‘Programme d’Investissements d’Avenir’ (PIA) scheme, by building on the return of experience of past schemes.

France initiated PIA schemes in 2010, with the aim to foster and finance innovation in strategic areas, from the emergence of ideas to the diffusion of new services and products on markets. France is now running its fourth ‘Programme d’Investissements d’Avenir’ (PIA4), covering a 5-year period between 2021 and 2025, with the aim to contribute to shaping France’s future in the time horizon of 2030. The PIA4 is divided in two parts: a ‘directed innovation’ strand (‘volet dirigé’) to finance exceptional investments in priority sectors and key technologies for the future; and a ‘structural’ strand (‘volet structurel’) to finance structural investments and innovation in higher education and research ecosystems.

As part of the present reform, building on recommendations made by the Comité de surveillance des investissements d’avenir, the PIA4 shall benefit from a clearer strategic steer, through the establishment of a high-level Conseil interministériel de l’innovation, bringing together relevant ministers around the Prime Minister to decide the orientations and priorities of innovation policy. The missions of the Comité de surveillance des investissements d’avenir shall themselves be broadened to an advisory role for the Conseil interministériel de l’innovation in the development of innovation policies and the identification of new investment priorities.

Innovation is fostered through ‘acceleration strategies’ developed by dedicated taskforces with scientific experts for key priority technologies and markets with high growth potential. Once ‘acceleration strategies’ are validated, calls for expression of interest and/or calls for proposals are launched, which are tailored to the specific needs of each strategy. Projects are then selected through competitive procedures. Funds are committed as calls for projects are launched and projects selected. As part of the present reform, processes to develop and implement ‘acceleration strategies’ are streamlined to ensure a more articulated and integrated approach (regulatory, fiscal, support-oriented, etc.) to problems identified, and to contribute to the quality of investments, through rigorous selection, monitoring and systematic evaluation processes.

France has included several PIA4-related measures in its recovery and resilience plan, and this reform aims to bring benefits across these measures – not only as regards Investment 1 on green innovation as part of the present component, but also on other fields (digital innovation, innovative businesses, and support to teaching, research, valorisation and innovation ecosystems – see measures under components 6 and 9).

Investment 1 (C4I1): Innovate for the green transition

This investment aims to accelerate and step up investment in advanced technologies for the green transition, in the context of the fourth Programme d’investissements d’avenir (PIA4).

This investment shall finance innovation projects, building on seven ‘acceleration strategies’ on the green transition, developed under the ‘volet dirigé’ of the PIA4.

The first of these ‘acceleration strategies’ focuses on decarbonised hydrogen. It was already validated in September 2020 and leads to operational actions, (i) a call for projects on ‘Briques technologiques et démonstrateurs’, which aims to develop or improve components and systems related to the production, transport and use of hydrogen, and to support demonstration projects, and (ii) the construction of IPCEIs on hydrogen (cf. Investment 2), to which the PIA4 framework contributes.

The following six other ‘acceleration strategies’ shall be put in place:

·Decarbonisation of industry, aiming to ramp up and deploy existing technologies solutions as well as disruptive technologies where the challenge is to industrialise a demonstrator, patent and market an innovative solution. In particular, the strategy shall focus on improving the energy efficiency of processes, decarbonising industry’s energy mix (especially heat), and deploying carbon-free processes and carbon capture and storage or use.

·Sustainable agricultural systems, also supporting agricultural equipment contributing to the green transition by enabling a shift from mechanisation to smart and connected agricultural equipment, replacing or limiting the use of fossil or synthetic inputs and developing the selection of multi-performing and resilient animal and plant populations.

·Recycling and reincorporation of recycled materials, aiming for the emergence of a model based on recycled raw materials substituting virgin materials through a coherent and integrated recycling value chain. Five materials are identified as priorities at this stage: strategic metals, plastics, composites, paper/cardboard and textiles.

·Sustainable cities and innovative buildings. Aiming to reduce urban sprawl to the detriment of agricultural land and natural spaces, and to make cities more resource-efficient, resilient, inclusive and productive, this strategy shall support innovative and replicable territorial demonstrators, with a focus in particular on the definition of tools and methods to promote the large-scale deployment of energy renovation of buildings; structuring the wood and geo-sourced materials sector with a view to carbon neutrality; and the digital transition of cities and artificial intelligence.

·Digitalisation and decarbonisation of mobility, to control greenhouse gas emissions by accelerating the sector’s green transition, while developing and improving the supply of daily transport solutions in all regions. Priority areas are the optimisation of operations and infrastructure, digital transformation and automation. The strategy aims to address all transport modes – passenger transport but also logistics. It shall focus in particular on demonstrators and pilots of systems and services, to remove barriers to scaling up, to test business models and to prepare the adaptation of the regulatory framework if necessary.

·Biobased Products and Industrial Biotechnologies – Sustainable Fuels, aiming to promote the development of industrial biotechnologies in France and biobased products, in particular to replace petroleum products. The strategy thus aims to develop a French industrial sector of biobased products and sustainable fuels, in particular for the aeronautics sector. It shall also tackle the demand for biobased products.

Once validated by the end of 2021, these strategies shall lead to calls for projects or calls for interest (to be launched by the end of 2022), to select and support the implementation of concrete actions. The investment in the French recovery and resilience plan is to support a part of the associated costs.

The terms of reference for upcoming calls for projects shall include as an eligibility criterion to ensure the environmental neutrality of the applications of the funded solution, in a way that ensures that the measure complies with the ‘do no significant harm’ principle of Regulation (EU) 2021/241. This shall complement the fact that, whenever applicable, environmental criteria are part of the selection criteria for projects, and that operators are required to produce a critical analysis of their proposals based on internal and external expertise; that the green transition is listed by law as one of the objectives of the PIA, and that the PIA’s governing bodies must ensure the application of these objectives, which is monitored through a dedicated indicator. This shall lead to the exclusion of (i) activities related to fossil fuels, including downstream use 14 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 15 ; (iii) activities related to waste landfills, incinerators 16 and mechanical biological treatment plants 17 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. 

Investment 2 (C4I2): Develop decarbonised hydrogen

This measure aims to develop French value chains for the production of renewable and low-carbon hydrogen, and for the use of this hydrogen in downstream, end-use sectors, such as transport and industry.

This measure is part of the broader context of the ‘National Strategy for the Development of Decarbonized Hydrogen’ adopted by France on 8 September 2020, which itself constitutes one of the ‘acceleration strategies’ put in place in the framework of the PIA (cf. Investment 1). This Strategy defines a vision for 2030, including the objective of establishing 6,5 GW of installed electrolysis capacity for the production of renewable and low-carbon hydrogen. In this context, this investment is part of a wider set of actions to be deployed until 2030.

This investment is structured around two sub-measures:

·The first sub-measure shall consist of establishing a mechanism to support renewable and low-carbon hydrogen production. This mechanism shall support hydrogen producers, to increase their production of hydrogen based on electrolysers. The support shall take the form of investment and operating aid. The operating aid aims to compensate the higher operating costs compared to fossil-based hydrogen production, and secure the revenue stream, thereby enabling investors to cover the upfront investment costs. The projects supported shall be completed and operational before 31 August 2026. They shall be selected based on competitive call for tenders, scheduled to be launched in the second half of 2022.

·The second sub-measure shall consist of launching and implementing planned Important Projects of Common European Interest (IPCEIs) on renewable and low-carbon hydrogen, in association with other Member States. The planned IPCEIs are currently under co-construction with other Member States. The projects shall aim at the development and first industrial deployment of solutions to foster the renewable and low-carbon hydrogen value chain at the European level. France is expected to contribute to the planned projects through support ultimately aiming to (i) make an electrolyser gigafactory operational in France by 31 December 2023, (ii) make a gigafactory for fuel cells and more generally tanks and materials to allow the development of hydrogen-based heavy vehicles operational by 31 December 2023, and (iii) achieve the conversion of industrial sites to renewable or low-carbon hydrogen by 31 December 2024. French actions under the project shall also be supported as part of the ‘Innovate for the green transition’ measure based on the ‘acceleration strategy’ on hydrogen adopted in the context of the PIA4 18 .

Investment 3 (C4I3): Support plan to the aeronautics sector

This investment aims to help the aeronautics industry to overcome present economic challenges by maintaining and diversifying its capacities, and increasing its environmental and digital performance; and to invest in transformative R&D to decarbonise air transport.

This investment is structured around two sub-measures:

·The first sub-measure shall consist of an investment support fund to promote companies’ diversification, modernisation, and digital and environmental transformation. The fund shall support companies of the aeronautics sector. A first call for projects was organised in the second half of 2020, and other calls for projects shall be organised in the coming years. In order to ensure that this sub-measure complies with the ‘do no significant harm’ principle, aircraft operators (in particular airports and airlines) shall be explicitly excluded from the calls for projects under this sub-measure.

·The second sub-measure shall consist of support to R&D in ‘green aircraft’ technologies. It shall be focused on fostering disruptive and transformative innovation in the aeronautics sector, to achieve its green transition, building on an integrated approach aiming to address all technological challenges identified. To that end, it shall support individual or collaborative R&D projects focused on the technological preparation of a new generation of ‘ultra-sober’ or ‘zero-emission’ aircraft. At least 70% of the effort shall directly contribute to the energy efficiency and reduction of climate impacts of future aircraft, and the remainder shall contribute indirectly via a reduction in cycles and costs over the entire aircraft life cycle, allowing a more rapid integration of green technologies into the fleets in service. Projects shall be selected based on calls for tenders and shall typically be completed over 2 to 3 years.

The terms of reference for upcoming calls for projects under both sub-measures shall include as an eligibility criterion that selected measures shall contribute to the green transition.

D.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators (for milestones)

Quantitative indicators (for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

4-1

C4.R1: Reform of the Governance of the Programme d’investissements d’avenir (PIA)

Milestone

Revised governance of the Programme d’investissements d’avenir

Entry into force

-

-

-

Q1

2021

Entry into force of the legislative change and the framework agreement putting in place the new governance with, in particular:

- The establishment of an Interministerial Innovation Council which brings together the competent ministers around the Prime Minister, and deciding orientations and priorities for the innovation policy;

- The expansion of the missions of the Future Investments Supervisory Committee to advising the Interministerial Innovation Council in the development of innovation policies and providing a consultative opinion on the identification of new investment priorities

4-2

C4.I1: Innovate for the green transition

Target

Number of ‘acceleration strategies’ validated

-

Number

0

7

Q4

2021

Number of ‘acceleration strategies’ validated (decarbonised hydrogen, decarbonisation of industry, sustainable agricultural systems, recycling and reincorporation of recycled materials, sustainable cities and innovative buildings, digitalisation and decarbonisation of mobility, biosourced products and industrial biotechnologies – sustainable fuels).

4-3

C4.I1: Innovate for the green transition

Milestone

Launch of calls for proposals or calls for interest

Publication on the ‘Secrétariat Général pour l’Investissement’ (SGPI)’s website

-

-

-

Q4

2022

All calls for proposals or interest under this measure for the strategies adopted under target 4-2 launched, with terms of reference including as an eligibility criterion to ensure the environmental neutrality of the applications of the funded solution.

4-4

C4.I1: Innovate for the green transition

Milestone

Award of the contracts – implementing decision of the Prime Minister

Report from the ‘Secrétariat Général pour l’Investissement’ (SGPI)

-

-

-

Q4

2023

Implementing decision of the Prime Minister following the close of the calls for proposals/calls for interest launched under milestone 4-3; allowing contractualisation with the beneficiaries through agreements or other contracts for granting funds to be signed. 

4-5

C4.I2: Develop decarbonised hydrogen

Milestone

Award of the contracts under the support mechanism

Publication on webpage

-

-

-

Q3

2022

Award of the contracts of the call for project of the mechanism to support hydrogen production. 

4-6

C4.I2: Develop decarbonised hydrogen

Target

Volume of hydrogen produced under the support mechanism

-

Tonnes

0

12000

Q4

2022

Volume of hydrogen produced by the projects selected and supported under the mechanism to support renewable and low-carbon hydrogen production (cumulative).

4-7

C4.I2: Develop decarbonised hydrogen

Target

Volume of hydrogen produced under the support mechanism

-

Tonnes

12000

100000

Q4

2025

Volume of hydrogen produced by the projects selected and supported under the mechanism to support renewable and low-carbon hydrogen production (cumulative).

4-8

C4.I2: Develop decarbonised hydrogen

Milestone

Signature of decision to attribute financial support to private promoters under the IPCEI on hydrogen

Publication on webpage

-

-

-

Q3

2022

Signature of decision to attribute financial support to private promoters under the IPCEI on hydrogen.

4-9

C4.I2: Develop decarbonised hydrogen

Target

Electrolyser production capacity

MW/yr

140

Q4

2025

Electrolyser production capacity amounting to 140MW per year of installed production capacity financed through the IPCEI on hydrogen.

4-10

C4.I3: Support plan to the aeronautics sector

Target

Number of projects selected for support under the investment support fund

-

Number

0

300

Q1

2022

Number of projects selected, based on terms of reference including as an eligibility criterion that selected measures shall contribute to the green transition, to be supported by the investment support fund to promote companies’ diversification, modernisation, and digital and environmental transformation (cumulative).

4-11

C4.I3: Support plan to the aeronautics sector

Target

Number of R&D projects to promote low-carbon and energy efficient aircraft selected

-

Number

0

200

Q4

2022

Number of R&D projects to promote low-carbon and energy efficient aircraft, selected based on terms of reference including as an eligibility criterion that selected measures shall contribute to the green transition (cumulative).

4-12

C4.I3: Support plan to the aeronautics sector

Target

Number of projects completed, under the investment support fund

-

Number

0

180

Q4

2025

Number of completed projects following support by the investment support fund to promote companies’ diversification, modernisation, and digital and environmental transformation (cumulative).

E. COMPONENT 5: Financing of businesses 

The shock of the crisis has led to a decline in corporate equity and a lack of sustainable capital. It weakens companies’ ability to repay and reduces the capacity to absorb shocks in the event of a new crisis. A lack of equity may also lead to companies adopting deleveraging strategies: reducing investment to increase margins and strengthen balance sheets – thereby amplifying the shock of the crisis for the economy as a whole. This financing situation, coupled with regulatory burden, particularly for services, presents a barrier to investment.

Component 5 of the French recovery and resilience plan seeks to address these challenges by strengthening SMEs’ equity and simplifying the regulatory environment to support a dynamic recovery. It also aims to ensure that companies benefiting from aid respect other criteria, such as the social and environmental transformation that are essential for the recovery.

The component is related to CSR 2019.4 and 2020.4 on reducing regulatory restrictions and fostering growth of firms, as well as CSR 2020.3.1 on supporting the liquidity of firms, in particular for small and medium-sized enterprises.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

E.1.    Description of the reforms and investments for non-repayable financial support

Reform C5.R1: Law on accelerating and simplifying public action (“loi ASAP”)

The objective of the ASAP law 19 , promulgated in December 2020, is to bring the administration closer to citizens, to facilitate business developments and to simplify administrative procedures for both businesses and individuals. The objective of the reform is to implement some of the remaining implementing provisions:

·The law foresees that if regulations, notably in environmental matters, should be amended during the examination of an industrial project, the project application shall continue to be subject to the same regulatory provisions in force at the time the application was submitted. Amendments to several environmental provisions shall be laid down in separate decrees, such as the conditions under which the Minister of the environment may ask for a new assessment of an industrial project application, the precise conditions under which a new environmental assessment may be required for urban planning projects, or time limits for environmental authorisation for works addressing a civil emergency.

·The law also provides for a simplification of the rules applicable to the online sale of medicines. It shall be sufficient for pharmacies to declare the opening of a website, rather than having to wait for prior authorisation.

·The streamlining of consultative commissions: more than 15 committees shall be abolished or merged, with the specific conditions for merging or abolition to be defined in separate decrees. Committees that shall be abolished include the Observatoire de la récidive or the Conseil supérieur de la mutualité, while others, such as the Conseil supérieur de l’égalité professionnelle and the Haut conseil à l’égalité (HCE) as well as various consultative bodies on labour relations, shall be merged.

Reform C5.R2: Contribution of enterprises to economic, social and environmental transformations in the context of recovery

This reform concerns article 244 of the financing law (loi de finances) for 2021, adopted specifically to ensure that companies benefiting from aid under France’s recovery and resilience plan (and the national plan more broadly) engage in an ecological transition approach, promote gender equality, and involve and inform their employees about the use of the funds received from the State. It imposes the following obligations on companies benefiting from aid under the national plan ‘France Relance’ 20 :

·All companies with more than 50 employees are required to publish, by 31 December 2022 (31 December 2023 for companies with between 51 and 250 employees), a simplified greenhouse gas emission balance 21 , to be subsequently updated every three years.

·Obligations are increased in the area of gender equality. In addition to having to publish the overall score obtained in the index of professional equality 22 , as is currently the case, beneficiaries under the recovery and resilience plan shall publish details of the results obtained for each of the sub-indicators making up the index. The threshold for having to set internal targets for each of the sub-indicators (which, if not met, may lead to fines equivalent to 1% of the wage bill) shall be lowered by decree from the current overall index score of 75.

·Corporate governance is strengthened: during the annual consultation on the ‘strategic guidelines of the undertaking’ already provided for by law 23 , the Social and Economic Committee is informed of the amount, nature and use of the aid received by the undertaking under the recovery plan measures.

Investment C5-I1: Contribution to regional investment funds

The objective of this measure is to strengthen the capital of small SMEs in French regions, with the view to strengthen their competitiveness and investment capacity, including to enable them to meet the challenges of the ecological transition and digital transformation.

This measure concerns the investment of the State of EUR 250 000 000 into a "fund of funds" set up by Bpifrance, an investment bank that is indirectly owned 100% by the French State. The fund shall invest EUR 250 000 000 in regional investment funds, either already existing or to be set up, pari passu with the Regions. The regional investment funds, in turn, have the explicit purpose of bringing in private investment and invest in the equity of SMEs. The financing provided by the State shall help leverage private investment to multiply the impact of the regional investment vehicles. The total part of the State in the investments may not exceed 50%, with total investments of at least EUR 1 000 000 000 targeted: EUR 250 000 000 by the State (the part that is financed under the recovery and resilience plan), EUR 250 000 000 by the Regions, and at least EUR 500 000 000 from private investors.

The investment decisions of the regional funds shall be made by private management companies specific to each Region, with the common purposes of strengthening SME equity. Individual fund investments shall be at most EUR 5 000 000.

By strengthening the financial position of the beneficiary companies, this investment aims to improve their competitiveness and investment capacity.  

Bpifrance’s intervention doctrine supports the ecological and energy transition. The equity intervention shall therefore finance investment funds designed to support, among others, industrial companies in their transition to low-carbon production systems.

In addition, Bpifrance’s responsible investment policy takes into account the Environmental, Social and Governance (ESG) criteria. The ESG criteria apply to Bpifrance’s investments, but also cover the fund’s management companies (as an undertaking, and its business as an investor) and the underlying undertakings. Bpifrance’s investment doctrine also establishes exclusion criteria, in particular concerning shareholdings engaged in the extraction of coal or the production of electricity from thermal coal. 

Any reflows (e.g. return on equity) linked to the funds that would be generated shall be reinvested for the same policy objectives, including beyond 2026.

E.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators (for milestones)

Quantitative indicators (for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

5-1

C5.R1

Implementation of ASAP law

Milestone

Law n°2020-1525 (loi ASAP)

Entry into force

Q2

2022

Entry into force of implementing decrees of the ASAP law, covering at least the following:

-Implementation of dispositions of procurement/renewal of sport membership and medical certificate

-Instruction of environmental authorisation requests in urgent civil circumstances

-Provisions relating to profit-sharing, participation or employee savings plan agreements

5-2

C5.R2

Enterprises’ contributions to economic, social and environmental transformations

Milestone

Article 244 of Law n° 2020-1721 (loi de finances 2021)

Publication on the website of the Ministry of Labour (sub-indicators)

Q1

2023

Publication of sub-indicators of the occupational equality index, as well as progress targets for each of these sub-indicators below a threshold set by decree.

5-3

C5.I1

Regional investment funds

Milestone

Grant to regional investment funds

Report from Bpifrance

Q4

2022

Disbursement by the fund of fund set up by Bpifrance of EUR 250 000 000 into regional funds in accordance with BPI’s investment rules.

5-4

C5.I1

Regional investment funds

Target

Contribution to regional investment funds

Amount

0

EUR 1 000 000 000

Q4

2022

Total financing leveraged (consisting of the State financing of EUR 250 000 000, as well as the contributions from the regions (EUR 250 000 000) and from private investors (EUR 500 000 000).

F. COMPONENT 6: Technological sovereignty and resilience

At around 2,2% in 2019, France’s share of R&D expenditure in GDP remains below the 3% target set by the Lisbon Strategy, and below that of leading countries in innovation and technology.

The objective of component 6 of the French recovery and resilience plan is to support investments in research and innovation to improve France’s innovation performance and strategic autonomy/technological sovereignty. It focuses on the development of strategic technologies and innovation in key sectors of the future, with the aim to strengthen France’s positions in these sectors and to increase the resilience of the economy.

In this context, the component includes two horizontal investments under the fourth ‘Programme d’Investissments d’Avenir’ (PIA4): (i) one aims to support the development of key digital markets (cyber, cloud, quantum, edtech, artificial intelligence, and cultural and creative sectors) to strengthen France’s positions in strategic sectors of the future; (ii) a second one to support firms’ innovation in strategic sectors. The component also includes an investment to support the space sector and funding for space research, as well as an investment to support employment in R&D. Those investments are complemented by a reform (the Research Programming Law), which aims to strengthen public funding for R&D, to enhance the attractiveness of scientific careers, and to increase business-academia linkages.

This component contributes to address the Country Specific Recommendations addressed to France on the need to “focus investment-related economic policy on research and innovation” (CSR 2019.3) or to “focus investment on […] research and innovation” (CSR 2020.3).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

 

F.1.    Description of the reforms and investments for non-repayable financial support

Reform C6.R1: Structural aspects of the Research Programming Law

The Research Programming Law 24 was adopted in December 2020 and pursues three objectives: strengthening the funding and organisation of research; improving the attractiveness of scientific jobs and careers; and enhancing the interactions of research with the economy and society. In order to achieve these objectives, the law’s implementation – which will entail the adoption of decrees – will focus on the following areas:

·Increasing the internal research and development expenditure of administrations and businesses to at least 3% of annual GDP, up from 2,19% in 2019. Compared to the initial financing law, more than EUR 30 000 000 000 shall be additionally invested over 2021-2030 for the benefit of research organisations, universities and other research establishments.

·Providing for an increase in the annual resources of the National Research Agency of EUR 1 000 000 by 2027, with the objective of increasing the success rate of calls for projects to 30%, up from the current 16%. The budget for remuneration of research and higher education staff is increased: an additional EUR 92 000 000 annually is foreseen as of 2021 and until 2027.

·Strengthening the link between science and the economy. The Research Programming Law shall make it easier for public researchers to set up a business, participate in the life of a business or combine research with private activity on a part-time basis.

Investment C6-I1: Preservation of employment in private R&D

This measure supports R&D employment by strengthening collaboration between public research laboratories and private businesses and by incentivising companies to hire young research graduates or have their existing researchers engage in doctoral or post-doctoral studies. The latter programme allows researchers to build up their skills and improve employability.

Four specific forms of collaboration shall be eligible for support:

·Companies allocating R&D staff for a period of 12-24 months to public research laboratories in the context of a common research project, whereby the researcher(s) concerned spend at least 80% of their time on the project.

·Companies allowing R&D staff to start doctoral studies during their career, for a period of 36 months maximum, whereby the researcher(s) are engaged full-time on the doctorate and spend at least 50% of their working time in a research laboratory.

·Young graduates with a masters degree employed by a public research institution, who are assigned to a company for a period of 12 to 24 months to work on a common research project, whereby the researcher(s) work for at least 80% of their time in the company.

·Young doctoral graduates employed by a public research institution who start an industrial post-doctorate for a period of 12 to 24 months, whereby the researcher(s) spend at least 50% of their working time in the company.

The measure shall cover between 50% and 80% of the salary of the researchers concerned, depending on the type of collaboration, in addition to providing a fixed subsidy of EUR 15 000 per researcher per year. The support applies for the duration of the collaboration projects, and is withdrawn thereafter. The measure shall support 2 000 researchers in total, with projects only eligible for support if there is a plan for the researcher(s) concerned to remain or become fully employed at the end of the collaboration period.

Investment C6-I2: Innovating for the resilience of our business models

The objective of this measure is to support investment for the development of key digital technologies, under the ‘volet dirigé’ of the fourth ‘Programme d’Investissements d’Avenir’ (PIA4).

It shall finance, more specifically, projects falling under the six ‘acceleration strategies’ described below:

·Strategy for the development of quantum technologies: in the field of calculation, the objective is to have a complete prototype of a first-generation general quantum computer by 2024. It also aims to master quantum technologies (including accelerators, simulators and quantum computers, business software for quantum computing, sensors, communication systems), with the objectives to double the French pool of specialists by training 6600 doctors, masters, engineers and technicians, and to ensure France’s self-sufficiency in its supply of resources for the development of quantum technologies. The strategy also aims at mastering critical industrial capacity in quantum technologies, in particular by investing in cryogenics and lasers for quantum technologies. It also aims to have a complete industrial production chain for Silicon 28, in particular to enable the possible production of qubit.

·Strategy for cybersecurity: The aim of the strategy is to accelerate innovation to make France master key technologies in critical applications (such as industry, health and mobility) and to strengthen cybersecurity capabilities within industry and society. The objectives are to enable the sector to increase its turnover, doubling the number of jobs in the sector and help create world leading companies in the sector.

·Education and digital strategy: the strategy covers the digital transformation of education, from kindergarten to university, with the objectives to address the efficiency of the education system, to support EdTech 25 and to support France’s leadership in this sector. It aims to train teachers in innovative pedagogical practices and to support existing companies in raising funds.

·Strategy for cultural and creative industries: The strategy aims to develop the digital content production. Investments shall support the sector’s technological innovation, digital creation and dissemination. The objectives are to double the current pace of transition from SMEs to ETI for cultural enterprises, to increase the export turnover and deploy cultural hubs by 2025 to irrigate the pilot territories.

·Strategy for 5G and future telecommunications technology: The aim of this strategy is to develop solutions around telecommunications networks and to achieve end-to-end control of these solutions through support for supply, R&D and training, while at the same time developing 5G usage for the benefit of regions and industry. The 5G strategy aims at developing 5G uses in cutting-edge industrial sectors, and supporting the deployment of smart regions. It also aims to invest in R&D in beyond 5G and 6G (future network technologies, heterogeneous connectivity of connected objects, energy efficiency of networks, etc.). It also aims to respond to skills needs on the design and deployment of future networks.

·Cloud Acceleration Strategy: the strategy aims to create competitive cloud solutions in technological segments (infrastructure, platforms and software), with the view to support France and Europe’s leadership over this key technology, also via the implementation of the Important Project of Common Interest for Next Generation and edge Computing Infrastructure and Service, for which France is co-coordinator. The expected impacts are the development of a supply of trusted cloud aimed at reducing the carbon footprint and the construction of a data-driven economy.

Once strategies are launched, calls for expression of interest and calls for proposals shall then be launched, tailored to the specific needs of each strategy. Projects (which are generally carried out by companies or research entities) shall then be selected through competitive procedures. Appropriations shall be committed as calls for projects are launched and projects selected.

The terms of reference for upcoming calls for projects shall include as an eligibility criterion to ensure the environmental neutrality of the applications of the funded solution, in a way that ensures that the measure complies with the ‘do no significant harm’ principle of Regulation (EU) 2021/241. This shall complement the fact that, whenever applicable, environmental criteria are part of the selection criteria for projects, and that operators are required to produce a critical analysis of their proposals based on internal and external expertise; that the green transition is listed by law as one of the objectives of the PIA, and that the PIA’s governing bodies must ensure the application of these objectives, which is monitored through a dedicated indicator. This shall lead to the exclusion of (i) activities related to fossil fuels, including downstream use 26 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 27 ; (iii) activities related to waste landfills, incinerators 28 and mechanical biological treatment plants 29 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. 

Investment C6-I3: Supporting innovative businesses

The objective of this measure is to finance R&D investment for innovative companies, under the ‘volet structurel’ of the fourth ‘Programme d’Investissements d’Avenir’ (PIA4). It targets innovative enterprises that, individually or through collaborative programmes, need access to finance to cover the risk inherent to their R&D projects. It includes:

·Bpifrance innovation aid: this aid shall target SMEs and start-ups (including technology-intensive start-ups, known as deep tech) to enable them to finance feasibility studies, industrial research and/or experimental development, with a view to developing innovative products, processes or services with concrete opportunities for industrialisation and commercialisation.

·Innovation competitions for start-ups and SMEs: this aid shall accompany the creation and growth of innovative technology companies, through aid to guide young researchers towards creating a business, to capitalise on the results of public research, and finally to finance start-ups and SMEs’ innovation projects with high potential. The winners of the innovation competitions come from a number of sectors: digital, health, transport and sustainable mobility, renewable energy, etc.

·Support for structured R&D projects: this aid shall accompany collaborative projects involving large companies with SMEs and mid-cap companies (“ETI” 30 ), with an incentive to work with research laboratories on projects stemming from the “Comités stratégiques de filière”. These projects bring together a consortium of at least two companies, with a view to creating synergies and fostering knowledge transfer, and to strengthening the depth and technological intensity of new innovative products or services.

The terms of reference for upcoming calls for projects shall include as an eligibility criterion to ensure the environmental neutrality of the applications of the funded solution, in a way that ensures that the measure complies with the ‘do no significant harm’ principle of Regulation (EU) 2021/241. This shall complement the fact that, whenever applicable, environmental criteria are part of the selection criteria for projects, and that operators are required to produce a critical analysis of their proposals based on internal and external expertise; that the green transition is listed by law as one of the objectives of the PIA, and that the PIA’s governing bodies must ensure the application of these objectives, which is monitored through a dedicated indicator. This shall lead to the exclusion of (i) activities related to fossil fuels, including downstream use 31 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 32 ; (iii) activities related to waste landfills, incinerators 33 and mechanical biological treatment plants 34 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. 

Investment C6-I4: Space

The measure supports three distinct actions:

·Ad-hoc contribution to the European Space Agency (ESA) for an amount of EUR 165 000 000 to respond to calls for financing launched by the ESA to finance space programmes, such as scientific missions, development of satellite programmes or financing of the Ariane 6 Programme, a rocket launch system development programme managed by the European Space Agency (ESA). These programmes are based on voluntary contributions of Member States (“optional programme”). Autonomous access to space is critical to enable the European science and exploration missions, as well as the pursuit of EU space programmes like Galileo and Copernicus.

·R&D projects in the following ways: (i) public procurement limited to research in strategic technologies defined with the National Centre for Space Studies (CNES) with both civil and dual applications ; (ii); calls for projects in areas relevant to the space sector such as optical communication, flexible telecommunication systems, and satellite telecommunication terminals; (iii) a call for projects to support key technologies in the field of nanosatellites; (iv) a national competition for space applications (“Space Tour 2021”) used to select R&D projects for innovative and promising space applications run by start-ups or SMEs.

·Projects in Vernon, the site where the ESA will carry out the first tests to develop “Prometheus”, a reusable and low-cost rocket engine. The measure supports the modernisation of the rocket engine testing facility in Vernon and the creation of a 10-hectare park of solar panels, which shall generate the amount of electricity needed to produce the site’s required hydrogen amounts through electrolysis. Lastly, this measure supports a project whereby hydrogen produced on the site as a by-product of industrial processes (“hydrogène fatal”) is recovered in a fuel cell.

F.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators (for milestones)

Quantitative indicators (for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

6-1

C6.R1

Research Programming Law

Target

Loi n° 2020-1674 du 24 décembre 2020 – entry into force of decrees

Proportion of decrees

0%

60%

Q4

2023

At least 60% of decrees entered into force.

6-2

C6.R1

Research Programming Law

Target

Loi n° 2020-1674 du 24 décembre 2020 – recruitments in tenure track

Person

0

100

Q4

2022

Number of tenure track recruitments (cumulative 2021-2022).

6-3

C6.R1

Research Programming Law

Target

Loi n° 2020-1674 du 24 décembre 2020- increase in public research funding

Amount

EUR 12,9 billion

EUR 14,7 billion

 Q3

2025

Increase in public research funding compared to 2020 as evidenced in the report from the DGRI.

6-4

C6.I1

Preserving R&D employment

Target

Number of R&D personnel benefitting from the measure

Person

0

2000

Q4

2022

Total number of R&D personnel benefitting from the four actions to support employment in R&D.

6-5

C6.I2

PIA – Key digital technologies

Target

Number of strategies validated

Number

0

6

Q4

2021

All six strategies (quantum technologies, cybersecurity, Digital education, cultural and creative industries, 5G, cloud) have been validated and published on the ‘Secrétariat Général pour l’Investissement’ (SGPI)’s website.

6-6

C6.I2

PIA – Key digital technologies

Milestone

Launch of the call for proposals or interest

Publication on the ‘Secrétariat Général pour l’Investissement’ (SGPI)’s website

Q4

2023

All calls for proposals or interest under this measure for the strategies adopted under target 6-5 launched, with terms of reference including as eligibility criterion to ensure the environmental neutrality of the applications of the funded solution.

6-7

C6.I2

PIA - Key digital technologies

Milestone

Awards of contracts – implementing decision of the Prime Minister

Report from the ‘Secrétariat Général pour l’Investissement’ (SGPI)

Q4

2024

Implementing decision of the Prime Minister following the closure of the calls for proposals/calls for interest launched under milestone 6-6; allowing contractualisation with the beneficiaries through grant agreements or other contracts for granting funds to be signed.

6-8

C6.I3

PIA – innovative businesses

Milestone

Launch of the call for proposals or interest

Publication on the ‘Secrétariat Général pour l’Investissement’ (SGPI)’s website

Q4

2022

All calls for proposals or interest under this measure launched for the strategies innovation aid of Bpifrance, innovation competitions for start-ups and SMEs, and R&D projects, with terms of reference including as eligibility criterion to ensure the environmental neutrality of the applications of the funded solution.

6-9

C6.I3

PIA – innovative businesses

Milestone

Awards of contracts – implementing decision of the Prime Minister

Report from the ‘Secrétariat Général pour l’Investissement’ (SGPI)

Q4

2024

Implementing decision of the Prime Minister following the closure of the calls for proposals/calls for interest launched under milestone 6-8; allowing contractualisation with the beneficiaries through granting aid to be signed.

6-10

C6.I4

Space

Target

Award of contracts to beneficiaries

Amounts

(millions)

0

200

Q1

2022

EUR 200 000 000 contracted with beneficiaries of (i) calls for projects in areas relevant to the space sector and national competition for space applications (“Space Tour 2021”); and (ii) projects in Vernon (recovery of hydrogen, park of solar panels, modernisation of rocket engine testing facility).

6-11

C6.I4

Space

Target

Number of beneficiaries

Number

0

80

Q1

2022

Number of beneficiaries of calls for projects in areas relevant to the space sector and national competition for space applications (“Space Tour 2021”).

6-12

C6.I4

Space

Milestone

Investments in Ariane 6

Follow-up of the progress of the European Space Agency by the National Centre for Space Studies (CNES)

Q4

2024

Realisation of Ariane 6 Programme

G. COMPONENT 7: Digitalisation of State, territories, enterprises, Culture

This component of the French recovery and resilience plan concerns investments and reforms in the domain of digitalisation of State, territories, SMEs, support to the cultural sector and reforms in the administrative simplification and the public finances domain.

The digitalisation, in particular of businesses, is key to increasing productivity in France, as highlighted by the National Productivity Board.

The digitalisation of the State is aimed to not only increase the performance of public administration through technological upgrades, it aims to also contribute to more inclusiveness, in complementarity with the reforms of the component aimed at simplification and decentralisation (4D law).

The support measures to the cultural sectors aim at the recovery of a severely hit sector via targeted investments in renovation, heritage, employment in the field of arts and modernisation of training, cinema, press, and book sectors, with a focus on climate transition and youth.

Finally, the two public finance reforms contribute to answering country-specific recommendations 2019.1.2 and 2020.1.1 on the management of public debt and expenditure, especially drawing a sustainable path for public finances on the long-term after the COVID crisis.

Digitalisation investments contribute to the digital infrastructure-related country-specific recommendations 2019.3.3 and 2020.3.4 and 3.7. The simplification reforms address parts of the business environment country-specific recommendations 2020.4.1 and 4.2. The investments in culture contribute to frontloading public investment with heritage renovation works (country-specific recommendation 2020.3.2) and mitigate the employment impact of the crisis (CSR 2020.2.1). Finally the public finance reforms address parts of country-specific recommendations 2019.1.3 (expenditure savings and efficiency), and 2020.1.1 (fiscal policies aimed at achieving prudent medium-term fiscal positions and ensuring debt sustainability).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

G.1. Description of the reforms and investments for non-repayable financial support

Reform 1 (C7.R1): Law on differentiation, decentralization, deconcentration and on various measures to simplify local public action (4D)

The measure shall make the local public service more efficient and adaptable, according to local specificities.

The law on "Differentiation, decentralisation, deconcentration and decomplexification" (bill 4D) shall provide for a number of provisions in the areas of housing, transport, ecological transition, health and solidarity. It shall pursue four objectives: (1) decentralization: to make public action more understandable and efficient, by completing the transfer of certain blocks of competences to local authorities; (2) promote differentiation: to ensure that each territory is able to provide responses to its specificities, using appropriate tools and resources; (3) strengthen deconcentration: to bring the State closer to the field and better adapt decision-making to local realities; (4) decomplexification: to simplify the implementation of the previous objectives.

An evaluation of the provisions that have worked to facilitate public action, according to the four principles provided for by law (decentralization, differentiation, deconcentration and decomplexification) shall occur by 30 June 2025.

Reform 2 (C7.R2): Organic law on to the simplification of experiments carried out on the basis of the fourth paragraph of article 72 of the Constitution

The measure shall enshrine the right to differentiation by giving local authorities the possibility of applying, first in an experimental framework and then, under certain conditions, in a lasting manner, rules relating to the exercise of their different powers to take account of their specificities.

The organic law shall provide that the local authorities may decide by a simple deliberation to participate in an experiment without their having to be authorized to do so by decree. It shall streamline the procedures governing the entry into force of the decisions they take in the context of the experiments as well as the conditions for exercising the legality control of these decisions. The experimental measures may be maintained in all or part of the local authorities that participated in the experiment and extended to others. The standards governing the exercise of local jurisdiction that have been the subject of the experiment may be modified at the end of the experiment.

By 30 June 2025, an evaluation of the first experiments carried out on the basis of the following indicators shall be undertaken. The evaluation shall consider at least the following factors: number of communities participating in each experiment, number of days required to obtain publication in the Official Journal the deliberations by which the communities participate in the experiments, time limit for the entry into force of the derogatory acts taken by the experimenting communities for each experiment.

Reform 3 (C7.R3): Civil service transformation

The transformation of the public service aims to respond to several challenges: making the public service more representative of the society, contributing to the professional integration of young people and low-skilled people, innovating in work organizations, valuing merit, competence, commitment, guaranteeing equality between women and men, and fight against all forms of discrimination. This policy is based on the implementation of the law on the transformation of the civil service of 6 August 2019.

The measure shall consist of the implementation of two action plans.

The action plan for the professionalization of the public service is based on 8 measures: (1) the development of a State- employer brand, (2) the organization of recruitment processes, (3) the professionalization and training of actors, (4) improving the integration of newcomers, (5) the overhaul of the “Place de ľemploi public” website, (6) sourcing, (7) the creation of talent pools and (8) the strategic management of recruitments.

The action plan for equal opportunities is designed around three pillars: (1) identifying and supporting young talents across the country towards success; (2) new competitive examination to access the civil service; (3) develop a professional career free of discrimination.

The implementation of the actions foreseen in these two action plan shall take place by 31 March 2022.

Reform 4 (C7.R4): Public finance governance

The objective of this reform of the governance of public finances is to put in place a strategy for the consolidation of public finances in the medium and long term. This strategy is based on the recommendations of the ‘Commission sur l’Avenir des Finances Publiques’ (report of 18 March 2021). Some of these recommendations shall be implemented through the entry into force of an organic law in time to be applicable for the 2023 budget and the next public finance programming law. The Organic law shall extend the prerogatives of the High Council of Public Finances and shall establish a multi-annual expenditure rule for general government expenditure. This expenditure rules shall ensure consistency between the annual budget bills and the multi-year objectives. The implementation of this new governance framework, as well as a multi-year trajectory for public finances that allows the debt ratio to be stabilised and then reduced, shall be set out in the new public finance programming law for 2023. The government shall also put in place a Covid debt ring-fencing strategy with the aim of allocating specific resources to its repayment.

Reform 5 (C7.R5): Assessment of the quality of public expenditure

Complementary to the reform of the public finance governance, this measure is for an evaluation of public spending that shall be carried out after the crisis with the aim of identifying the most efficient expenditures favouring growth, social inclusion and the ecological and digital transition. Public spending is expected to be directed towards those that promote this type of growth while reducing those that are inefficient or redundant with respect to other sources of finance. It is, therefore, essential to accurately assess the impact of public spending with regard to the public policy objectives it serves and the search for efficiency in achieving it, in the short and medium term.

The measure shall include the stock taking of the outcome of the reforms on the effectiveness of public action over the Presidential term, the publication of an audit report on public finances by the Court of Auditor and the inclusion of the evaluation of public expenditure in upcoming budgetary laws.

The audit report on public finances to be published by the Court of Auditors shall also be a contribution to defining the strategy for the gradual exit from the support mechanisms put in place from March 2020 to respond to the economic impacts of the health crisis.

The public expenditure impact assessments shall be strengthened in connection with the entry into force of the new public finance programming law from 1 January 2023, once the health crisis has passed. The underlying expenditure trajectory shall then be detailed in the next financial laws annuals.

The assessment of the quality of public spending shall be made a regular practice, with a clear scope and calendar and the measures taken to improve the quality and efficiency of public spending shall be annually assessed.

Investment 1 (C7.I1): Digitization of companies

Two sub-measures shall be implemented to modernize companies.

The first sub-measure is the continuation of the existing “France Num” initiative and it shall support companies in their digital transformation to develop their business digitally. The “France Num” initiative shall offer several support schemes: 17 500 digital diagnoses and up to 5 000 accompaniments from the Chambers of Commerce and Industry (CCI) and the Chambers of Trades and Crafts (CMA); 150 000 trainings shall occur as well as the production and broadcasting of a TV program for the general public in order to raise the awareness of micro-businesses which are still not digitally equipped.

The second sub-measure shall support investments in industrial SMEs and mid-caps through upscaling and supporting their medium / long-term digitization strategy with the adoption of new technologies. The aid shall take the form of a subsidy for the acquisition of a property registered as a fixed asset and assigned to an industrial activity in predefined eligible categories: robotic equipment, additive manufacturing, virtual or augmented reality, design software, integrated machines for high-performance computing, numerically-controlled production machines, as well as software or equipment the use of which requires artificial intelligence.

Investment 2 (C7.I2): Digital upgrade of the State and territories

This investment shall identify digital innovative approaches allowing for an improvement of the efficiency of the public action and the quality of the working environment of public officials, including for e-mobility.

To this end, a “Public Agent Digital Backpack” Fund for projects shall modernize the workstation of State officials and an “Innovation and digital transformation Fund" support high-impact digital initiatives within the State and local authorities, while supporting the digital sector.

To provide a more efficient, more collaborative and more mobile digital work environment for State employees, the funded projects shall fall under five themes: increased performance of data transport networks; development of federated digital identification for State officials; of secure remote access solutions to digital tools; of unified communication solutions at the interministerial level; and support for the acquisition by managers and teams of digital working methods.

To stimulate digital innovation and accelerate the digital transformation of the State, the funded projects shall fall under eight themes: quality dematerialization of the administrative procedures most used by citizens and businesses; new natively digital public policies; development of best digital practices born in local State services; professionalize public digital sectors; develop the use of data in the service of public action; study and experiment with the use of emerging digital technologies and approaches; digital transformation of local authorities; support structuring projects mobilizing multiple transformation levers.

Investment 3 (C7.I3): Cybersecurity of State services

The investment shall support the strengthening of cybersecurity capabilities for public services; encourage the development of a competitive and innovative cybersecurity offer for the benefit of the economy and society and reinforce the ability to prevent and respond to cybersecurity attacks.

The following projects shall in particular be implemented:

·the creation of incident response teams in the territories;

·the deployment of diagnostic and security packs for eligible beneficiaries,

·the acquisition of security products for the benefit of the State and public services;

·increasing the national capacity to detect cyber attacks.

Investment 4 (C7.I4): State digital upgrade: digital identity

Two sub-measures shall be implemented: the digital national identity card and the development of a State-guaranteed digital identification system. These two measures shall also contribute to improve security and interoperability.

To support the deployment of the new identity cards, without disrupting service to users, the systems, equipment and related IT networks shall be adapted. In particular, these systems shall be upgraded: the application « Titres électroniques sécurisés » (and subsequent cybersecurity upgrade), the implementation of fingerprint collection devices, and the user portal of the National Agency for Secure Titles (‘Agence nationale des titres sécurisés’) to allow users accessing their procedures.

The development of a State-guaranteed digital identification system shall replace the practice of username/password by a more secure system of digital identification. The development of the new system shall be made in a European context of digital interoperability (eIDAS Regulation). The solution shall allow developing new sensitive public and private uses and fighting online fraud and identity theft.

Investment 5 (C7.I5): Equipment and infrastructure of the Ministry of the Interior

The measure shall develop the applications of the Ministry of the Interior and ensure their resilience. In particular, the projects supported concern several technical infrastructures:

·State inter-ministries network: phasing out of the phone network RIMBAUD and doubling existing network connections;

·IT base of the territorial administration of the State: construction of the base and new organization to coordinate the network of departmental inter-ministries information and communication systems services;

·Police prefecture video protection plan: develop and offer new storage and network capacities to the video protection system of the Paris police headquarters, in particular in view of the 2024 Olympic Games;

·Networks security: strengthening of the digital security of the Ministry (cyber defense);

·Data centre resilience: infrastructure work to ensure energy resilience for the Ministry's data centres;

·Population alert and information system: develop the alert and information system to the population, in particular with a view of implementing of the new FR-Alert system (see also measure “Ministry of the Interior’s applications”).

Investment 6 (C7.I6): Ministry of the Interior's applications

This measure shall develop new or upgrade existing digital applications for the Ministry of the Interior:

·SI Elections: application shall overhaul the computer system designed for the elections by increasing the overall robustness of the system and by interfacing in particular with other applications such as the national directory of elected officials.

·Online complaint: the application shall allow the user, in certain cases, to limit his movements and to file a complaint directly online. The project shall provide for a first phase of online support for the user / victim for whom travel may be difficult at first.

·FR-Alert: the application shall implement the Directive 2018/1972 on the establishment of an alert system via mobile phone before 30 June 2022. This application shall send immediate alerts to the user.

·Marcus 112: The Marcus 112 project shall put in place the actions and experiments necessary to rationalize the several emergency phone numbers that currently coexist in France;

·Vehicle registration system (SIV): this application shall overhaul the vehicle registration system by optimizing the user experience and improving performance;

·LOG MI: this application shall provide a centralized logistics system common to all actors of the Ministry of the Interior.

·IT project Preparation for the future: this application shall facilitate the conduct of investigations by new digital means and reinforce the mobility of agents in the field.

Investment 7 (C7.I7): Mobility and teleworking at the Ministry of the Interior

This investment shall support a set of measures intended to promote the development of mobility and teleworking within the Ministry of the Interior. Three actions shall be implemented:

·Improvement of the digital environment and development of teleworking: promoting the development of collaborative work solutions, the acquisition of teleworking work stations and the implementation of systems allowing teleworking for officials.

·Radio network of the future: development of a Long Term Evolution network for public and private security actors (such as State police, firefighters, emergencies and municipal police). It shall provide effective and resilient means of communication, allowing an adapted answer to the needs of law enforcement and crisis response.

·NEO stations: extend the equipment of the police with 40 000 secure mobile terminals. The terminals and the accompanying application system allow law enforcement officers to carry out actions formerly carried out in professional offices while on mission on the terrain. They thus limit travel for both the agent and the user and ensure better overall efficiency.

Investment 8 (C7.I8): Administrative continuity: digital upgrading of the administration of the education system

This investment shall accelerate the digital transformation of the Ministry of Education, Youth and Sports, thanks to the development of its information systems, relying more heavily on data, to make them more efficient, more accessible and more secure. This investment shall also strengthen the dematerialization of procedures and services to users.

Five actions shall be implemented:

·Modernization of IT tools for first degree schooling: setting up of information systems for data exchange with local communities and simplification of management procedures.

·Simplification of piloting and management information systems for the second degree schooling

·Development of data exchanges with partner ministries: for example with the Finance ministry for the management of higher education grants.

·Generalization of tools and services allowing to telework in a secure environment for administrative agents, management and inspection staff, in particular through the adaptation of infrastructures and dedicated secured applications.

·Upgrade of infrastructure and tools to share data and digital services throughout the pupil's schooling (such as with local communities, parents and higher education), to set up new work organizations, promoting efficiency of agents and quality of life at work and to simplify user procedures and take into account the user experience.

Investment 9 (C7.I9): Educational continuity: digital transformation of the school

This investment shall support the installation of mobile digital equipment in the classrooms, which is a prerequisite for developing hybrid education. It shall also support investments in video projectors, shared mobile equipment, equipment specific to the elementary school, as well as the network allowing both on-site and remote teaching via the loan of material to students. It shall also fund services and resources for the first degree education as well as equipment allowing hybrid teaching in high school. The measure will be implemented through competitive calls for tenders.

Teachers shall be trained to master the new digital education tools and services as well as the new digital environment.

Investment 10 (C7.I10): Digitalisation of public services: developing access to higher education throughout the country thanks to digital

The investment shall fund the deployment of dematerialized course modules in higher education as well as the installation of the necessary digital infrastructure. The development of remote learning courses and the corresponding infrastructures shall allow adaptation to the current health situation by avoiding overcrowding in lecture halls and classrooms. It shall also pave the way to a longer-term strategy of accessibility to higher education intended to reach a wider public throughout the national territory but also abroad. Moreover, it shall allow proposing a more diverse and complete training offer, suited to the constraints of certain students who have to reconcile their studies with a professional activity.

The investments shall support projects for:

·creation of digital and accessible online modules in higher education institutions

·digital training of teachers-researchers from universities

·developing of nation-wide platforms (virtual classroom, webinar, distance exams, learning management system) which shall eventually offer all the bachelor's and master's modules.

·call for projects dedicated to digital services focusing on the students' user experience.

Investment 11 (C7.I11): Support for cultural sectors and heritage renovations

The investment shall support cultural heritage renovations, promote the performing arts, consolidate French major cultural economic sectors and put in place a strategy for cultural and creative industries.

The investment shall support three sub-measures: investment in cultural heritage to renovate historic monuments, in order to ensure their lasting viability and as such contribute to promoting local tourism eco-systems; investment for employment and training modernization and investment for cultural strategic sectors.

Investing in cultural heritage shall support heritage sites in the regions and promote craftsmanship and know-how. This investment shall support five restoration actions:

·a “Cathedrals Plan” to speed up the necessary safety and security work and restoration projects for 47 religious buildings belonging to the State;

·the restoration of historic monuments belonging to local authorities and private owners. This shall include support for the restoration of the church in Turenne (New Aquitaine), the castle of Meauce (Bourgogne-Franche-Comté) and the Palais Rontaunay (Réunion);

·the restoration of 14 monuments managed by the Historical Monuments Center across the whole territory, such as the Château d'Angers or the abbey of Mont-Saint-Michel;

·the restoration of Villers-Cotterêts castle to become an International City of French language;

·the restoration of heritage facilities such as regional museums, departmental and municipal archives as well as conservation and study centers intended to preserve the remains resulting from archeological excavation.

The investment for artistic employment and training modernization shall support three actions:

·an “ecological transition fund” that finances projects in favor of ecological and digital transition carried out by artistic creation institutions (labels and venues for live performance and visual arts);

·a modernization plan for cultural higher education establishments which shall invest in energy retrofitting, support training, and strengthen their digitalization through the modernization of their teaching tools and their IT infrastructures;

·an exceptional public order program to give new impetus to creation in all disciplines. This program aims to support young designers in particular. It is thus a one-off expenditure in favor of the acquisition of works of art, all disciplines combined.

The investment in strategic sectors shall support three distinct actions, each corresponding to a strategic sector: the Press Sector plan, the Book Sector plan, the Cinema Sector Plan.

The Press Sector Plan shall support the following five sub-actions:

·a plan for the transformation of the press printing facilities, in particular for the regional daily press network. This shall include ad hoc financing of support measures as well as training and retraining actions for employees in favor of the acquisition of new skills to find suitable employment in a context of restructuring of the sector;

·a strengthening of the strategic fund for the development of the press to support a wide variety of projects of press companies (print titles, online press services and news agencies) in the realization of investment projects representing an innovation, increasing their productivity or improving and diversifying the editorial form;

·support in the modernization of broadcasters who wish to renovate their sales area or optimize their management of press products;

·a fund for ecological transition to finance research and development projects aimed at reducing the carbon footprint of the sector and at offering innovative solutions to support the transition of the sector;

·a fund to fight against insecurity for the most vulnerable professions (freelancers, photojournalists, press cartoonists) and improve their resilience.

The Book Sector Plan shall fight against the most lasting effects of the health crisis and support the necessary changes in the sector. It shall support three sub-actions.

·The "Young people in bookstores" operation shall promote local cultural commerce and encourage the purchase of books by young people. It is an artistic and cultural education program that shall allow young people to discover bookstores and their role in promoting works and authors.

·A modernization investment for bookstores shall improve their reception conditions for the public and to generate productivity gains. They shall be encouraged to develop their digital distance selling tools, in a context where successive lockdowns have pushed them to implement these new development strategies.

·Finally, the general library decentralization allocation shall be temporarily reinforced in order to extend opening hours and make structural investments. These investments shall finance in particular the renovation work and the upgrading of the buildings' thermal and energy standards.

The Cinema Sector plan shall support the industry with new measures to enable it, in coming out of the crisis, to look to the future, at all levels of the production chain; support for creators, support for production, modernization of technical industries and development of internationalization. The Cinema Sector Plan shall support eight sub-actions.

·The first sub-action shall make up for the delay in cinema production by the production of new works. Automatic support, which may be mobilized by producers, shall be increased and production aids reinforced to encourage the launch of new works.

·The second sub-action shall encourage film distributors to turn to the cinema. Specific measures shall be adopted to encourage distributors to exploit their films during the long recovery period, for example, through increases in automatic support.

·The third sub-action shall strengthen the viability of cinemas by reaching out to the audiences of tomorrow in all regions.

·The fourth sub-action shall catch up with the delay in audiovisual production, as in cinema, by the production of new works through the increase in automatic support.

·The fifth sub-action shall accelerate the modernization of technical industries to create an industrial fabric capable of creating value in a context of growing supply.

·The sixth sub-action shall modernize the valuation of heritage, for which public demand appears to be growing in the medium and long term.

·The seventh sub-action shall strengthen the internationalization of the sector with a view to the global revival of the sector. Targeted measures shall be adopted to take into account the growing importance of platforms.

·The eighth sub-action shall encourage the talents of the future, in particular by focusing on authors to make the crisis a creative moment. These new measures shall support professionals with a view to developing new artistic proposals. This shall include the launch and boost of support for the author program by relaunching creative and cultural R&D. Author grants and targeted support for teams of young graduates are also planned.

Control and audit:

The implementation of the recovery and resilience plan is monitored by the “Secrétariat Général France Relance” attached to the Prime Minister and the Minister of Economy, Finance and Recovery. The implementation is delegated to the Ministries by means of “conventions” and “chartes de gestion”. With regard to the internal control system, the authorities in charge of the recovery and resilience facility in France rely on the national system in place in France to control the national budget. The CiCC (Commission interministérielle de coordination des contrôles) is appointed as the national audit and control coordinator.

A circular shall be signed by the Prime Minister setting out:

-The system organisation and the obligations of each structure in terms of ensuring reliability and control of data pertaining to indicators;

-Procedures for collecting and storing data on all types of final recipients.

Given that the circular is expected to define important elements of the control and audit system, which are not yet available as of the date of submission of the plan, a milestone relating to the signature of these circulars shall provide further assurance. Moreover, the milestone shall also include a report by the CiCC detailing its audit strategy and describing the envisaged audit work on payment claims.

G.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support



Sequential number

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators (for milestones)

Quantitative indicators

(for target)

Indicative timeline for completion

Description of each milestone and target

Unit

Baseline

Goal

Quarter

Year

7-1

C7.R1

4D Law

Milestone

Entry into force of the 4D law

Entry into force

Q1

2022

Entry into force of the 4D law aimed at strengthening the efficiency of public services by promoting differentiation, decentralization, deconcentration and decomplexification.

7-2

C7.R1

4D Law

Milestone

Evaluation of the 4D law

Evaluation report

Q2

2025

Evaluation of the provisions that have worked to facilitate public action, according to the four principles provided for by law (decentralization, differentiation, deconcentration and decomplexification).

7-3

C7.R2

Organic law Experimentation

Milestone

Entry into force of the law aiming to enshrine the right to differentiation

Entry into force

Q2

2021

Entry into force of the law aiming to enshrine the right to differentiation by widening the possibility for local authorities to resort to experiments to take into account their specificities (simplification of the legal framework and dedication of new outcomes to experimentation).

7-4

C7.R2

Organic law Experimentation

Milestone

State of play of the first experiments carried out

Evaluation report

Q2

2025

Evaluation of the first experiments carried out on the basis of the following indicators (included in the measurement): number of communities participating in each experiment authorized by law or regulation, number of days required to obtain publication in the Official Journal the deliberations by which the communities participate in the experiments, time limit for the entry into force of the derogatory acts taken by the experimenting communities for each experiment authorized by law or regulation).

7-5

C7.R3

Civil service transformation

Milestone

Implementation of actions identified as part of the projects launched on recruitment and equal opportunities

Implementation report

Q1

2022

Implementation of the plan for equal opportunities, with the following objectives: increase in the number of young apprentices, disabled workers, plan in favor of gender equality in senior State management, renovation of access to the public service through new competitive exams, support for the success of young talents throughout the territory, development of coaching and mentoring for equal opportunities.

7-6

C7.R4

Governance of public finances

Milestone

Submission of the CAFP report (Commission sur l’Avenir de Finances Publiques)

Submission of the report

Q1

2021

Submission of the CAFP report (Commission sur l’Avenir de Finances Publiques) on the post-crisis budgetary strategy and on the renovation of the public finance governance framework.

7-7

C7.R4

Governance of public finances

Milestone

Implementation of selected recommendations of the CAFP report

Entry into force

Q4

2021

Implementation in time to be applicable as from the 2023 Budget of selected recommendations of the CAFP report through the adoption of organic legislative provisions, which have in particular the following objectives:

- The extension of the prerogatives of the HCFP (Haut Conseil des Finances Publiques)

- The establishment of a multi-year expenditure rule as a steering rule. This expenditure rule shall ensure consistency between the annual budget bills and the multi-year objectives.

7-8

C7.R4

Governance of public finances

Milestone

Implementation of a COVID debt containment scheme

Implementation of a COVID debt containment scheme

Q4

2021

Implementation of a COVID debt containment scheme in the draft budgetary plan.

7-9

C7.R4

Governance of public finances

Milestone

New Public Finances Programming Law (LPFP, ‘Loi de Programmation des Finances Publiques’)

Entry into force

Q1

2023

Entry into force of a new Public Finances Programming Law (LPFP, ‘Loi de Programmation des Finances Publiques’) implementing the new organic legislative provisions adopted and setting a public finance path making it possible to stabilize and then decrease the debt ratio.

7-10

C7.R5

Assessment of the quality of public spending

Milestone

Publication of the results of the productivity reforms

Publication of the report

Q4

2021

Publication of the results of the productivity reforms of public action carried out over the five-year presidential term.

7-11

C7.R5

Assessment of the quality of public spending

Milestone

Report of the audit mission of the Court of Auditors on public finances

Publication of the report

Q2

2021

Report of the audit mission of the Court of Auditors on public finances.

7-12

C7.R5

Assessment of the quality of public spending

Milestone

Exit emergency measures under sanitary conditions

Exit from emergency measures

Q4

2022

Exit emergency measures under sanitary conditions, based on the recommendations of the report of the audit mission of the Court of Auditors.

7-13

C7.R5

Assessment of the quality of public spending

Milestone

Construction of financial laws articulated with public expenditure evaluations covering the scope of public administration in compliance with the expenditure trajectory of the public finance programming law

Construction of financial laws

Q4

2022

Construction of financial laws articulated with public expenditure evaluations covering the scope of public administration in compliance with the expenditure trajectory of the public finance programming law.

7-14

C7.R5

Assessment of the quality of public spending

Milestone

Annual assessment of measures taken to improve the quality of public spending implemented in the 2023 budgetary law

Publication of assessment

Q1

2024

Annual assessment of measures taken to improve the quality of public spending implemented in the 2023 budgetary law.

7-15

C7.I1

Digital upgrade of companies

Target

Number of companies that received a subsidy to foster digital investments

Number

0

3320

Q1

2022

Number of companies that were supported to foster digital investments through the scheme “Industries of the Future”.

7-16

C7.I1

Digital upgrade of companies

Target

Number of digital solutions provided to companies

Number

0

200,000

Q3

2024

Number of digital trainings and digital check-ups provided to companies through the scheme “FranceNum”.

7-17

C7.I2

Digital upgrade of the State and local authorities

Target

Number of companies benefitting from public orders

Number

0

200

Q1

2023

Number of companies benefitting from public orders in the framework of the ‘Innovation and Numerical transformation’ and ‘and Sac à dos numérique de l’Agent public’ Funds to digitally upgrade State and local authorities.

7-18

C7.I2

Digital upgrade of the State and local authorities

Target

Percentage of civil servants equipped for teleworking

Percentage

95%

Q3

2023

Percentage of civil servants equipped for teleworking based on annual studies conducted among the civil servants of the French administration.

7-19

C7.I3

Cybersecurity of central government

Milestone

Investment to increase governmental cybersecurity

Report to be provided by the French Government providing evidence of completion

Q4

2024

Completion of the four actions to increase governmental cybersecurity:

·creation of response teams,

·deployment of diagnostic packs,

·acquisition of cybersecurity tools,

·increase of detection capacity of cyberattacks

7-20

C7.I4

Digital upgrade of the State – digital ID

Target

Number of digital ID cards produced

Number

3 000 000

Q1

2022

Number of new identity cards produced and in circulation.

7-21

C7.I4

Digital upgrade of the State – digital ID

Target

Number of citizens using the digital ID application

Number

12 500 000

Q4

2023

Number of unique users of the newly developed sovereign digital identity application.

7-22

C7.I5

Equipment of Ministry of Interior

Milestone

Investment to reinforce the digital equipment of the Ministry of Interior

Report to be provided by the French Government providing evidence of completion

Q4

2023

Completion of the six actions to reinforce the digital equipment of the Ministry of Interior:

• State interministerial network,

• IT base of the territorial administration of the State

• Police prefecture video protection plan

• Network security

• Data centre resilience

• Population alert and information system

7-23

C7.I6

Applications of the Ministry of Interior

Milestone

Investment in digital applications developed by the Ministry of Interior

Report to be provided by the French Government providing evidence of completion

Q2

2025

Completion of the seven digital applications for the Ministry of Interior:

• SI Elections

• Online complaint

• FR-Alert

• Marcus 112

• Vehicle registration system

• LOG MI

• IT project "Preparation for the future"

7-24

C7.I7

Teleworking in the Ministry of Interior

Milestone

Investment to reinforce the digital connectivity of the Ministry of Interior

Report to be provided by the French Government providing evidence of completion

Q4

2023

Completion of the measures to reinforce digital connectivity of the Ministry of Interior:

• Improvement of the digital environment and development of teleworking (completion)

• NEO stations (completion)

• Radio network of the future (first steps)

7-25

C7.I8

Digital upgrade of the education system

Milestone

Investment to

upgrade the digital services of the Ministry of National Education

Report to be provided by the French Government providing evidence of completion

Q2

2026

Completion of the five actions to upgrade the digital services of the Ministry of National Education:

• Modernization of IT tools for 1st degree education (project “Onde”, management tool for headmasters)

• Deployment of the single authentication system to access digital education services and resources and extension of the scope of beneficiaries

• Deployment of the secure solution to access digital resources in primary schools (GAR project)

• Transformation and modernization of academic infrastructure and tools

• Generalization of tools and services allowing remote work

7-26

C7.I9

Digital transformation of the school

Target

Number of school classes digitally equipped

Number

0

45,000

Q4

2022

Number of school classes digitally equipped with digital resources in elementary classes, as well as hybrid classes in secondary education together with support for change for the personnel concerned.

7-27

C7.I10

Digital access to higher education

Target

Number of students having access to digital training

Number

0

1,400,000

Q4

2024

Number of students having access to digital training capacities in the higher education system.

7-28

C7.I11

Culture

Target

Cathedrals and national historical monuments

Number

0

62

Q4

2025

Number of renovation projects of cathedrals and national historical monuments belonging to the State that are completed.

7-29

C7.I11

Culture

Milestone

Monuments belonging to local authorities and private owners

Report to be provided by the French Government providing evidence of completion

Q4

2025

Completion of all renovation works for monuments belonging to local and regional authorities (LRAs) as well as to private owners.

7-30

C7.I11

Culture

Target

Number of renovated art and architecture schools

Number

0

13

Q4

2024

Number of art and architecture schools renovation works completed.

7-31

C7.I11

Culture

Milestone

Schemes to support art creation

Report to be provided by the French Government providing evidence of completion

Q4

2024

Completion of the two schemes to support institutions focusing on art creation and support artists through a public programme of art acquisition.

7-32

C7.I11

Culture

Milestone

Investment in the “The Press Sector Plan”

Report to be provided by the French Government providing evidence of completion

Q4

2022

Completion of the six actions to invest in the press sector (“The Press Sector Plan”)

·Investments in restructuring of the press printing facilities

·Investment for the modernization of broadcasters

·Transformation plan for regional press printing

·Fund to fight against precariousness

·Strategic fund for press development

·Ecological transition fund

7-33

C7.I11

Culture

Milestone

Investment in “The Book Sector Plan”

Report to be provided by the French Government providing evidence of completion

Q4

2022

Completion of the three actions to invest in the book sector (“The Book Sector Plan”):

·"Young people in bookstores” scheme

·Investments in modernization of bookstores

·Investments in the modernization of bookstores as part of the General Decentralization Grant Scheme

7-34

C7.I11

Culture

Milestone

Investment in the “The Cinema Sector Plan”

Report to be provided by the French Government providing evidence of completion

Q4

2022

Completion of the eight actions to invest in the cinema sector (“The Cinema Sector Plan”):

·Catch up in production by producing new movies

·Encourage film distributors to turn to the cinemas

·Strengthen the viability of cinemas (young public)

·Catch up in production by producing new audio-visual content

·Accelerate the modernization of technical industries

·Modernize the valorisation of heritage

·Strengthen the internationalization of the cinema sector

Directly support the talents of the future

7-35

Control and audit procedures in the implementation of the RRF

Milestone

Organisation of the system and the treatment of data and organisation of the audits

Signature of the circular and report by the CICC

Q4

2021

Establishment of controls and audit procedures through the two following elements:

·Signature of a circular by the Prime Minister, which shall set out the roles and responsibilities of the coordinating body and of ministries and the procedure of collection and storing of data pertaining to indicators, including ensuring their reliability and access to the data collected of all types of final recipients;

·Finalisation of a report that shall provide a description of the envisaged audit strategy including a description of the audit work on the payment claims.

H. COMPONENT 8: Job protection, youth, disability, vocational training

In 2019, unemployment in France had reached its lowest level since the 2008 crisis at 8,1%. However, due to the health crisis, according to INSEE, 284 000 employed jobs were destroyed between the end of 2019 and the end of 2020. A rise in unemployment was largely mitigated by labour retention measures, in particular short-time work schemes. Further support is, however, necessary for populations more sensitive to the variations of the labour market, to avoid a structural increase in unemployment through hysteresis.

Under this component of the French recovery and resilience plan, a variety of measures are directed at supporting the entrance of youth in the labour market, including those most at risk of exclusion.

Vocational training, by enabling career transitions and contributing to increasing the productivity of the economy, will play a key role in the green and digital transformations of the economy. Moreover, the crisis has highlighted the low digitalisation of vocational training (though digitalisation may support innovative learning methods, for example by using virtual reality to practice specific professional handicraft), which the authorities aim to further support by targeted investments.

By helping mitigate the employment and social impact of the crisis and promoting skills and support for jobseekers, these investments and reforms answer country-specific recommendation 2020.2. These measures also contribute to supporting the labour market integration of all job seekers and addressing skills shortages and mismatches, as set out in country-specific recommendation 2019.2

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

H.1.    Description of the reforms and investments for non-repayable financial support

Reform C8.R1: Provision of services by the unemployment agency (Pôle Emploi)

This reform concerns the reorganisation of the provision of services by Pôle Emploi, the main public employment service.

This reform shall make it possible to speed up the treatment and individual diagnosis of jobseekers’ situation and thus facilitate the rapid return of people to the labour market. It shall provide increased support to more vulnerable public, for whom social and professional difficulties overlap. Improved business services and training for jobseekers shall improve matching of labour supply and demand and reduce increasing recruitment tensions in some sectors.

The implementation of two aspects shall more specifically be monitored: the integration of Cap’Emploi, which specialises in employment for persons with disabilities, and the integration of compensation counsellors within the Pôle Emploi agencies.

Reform C8.R2: Adaptation of short-time work schemes

At the height of the Covid-19 crisis in the spring of 2020, an exceptional short-time work scheme was introduced to limit the impact on employment and income due to reduced economic activity during lockdown periods.

Over the course of 2021, as the second wave of the pandemic subsides and economic conditions improve, this ordinary short-time work scheme, dedicated to cyclical activity reductions, shall be tightened. In particular:

-Employees shall receive compensation of 60 % (instead of currently 70 %) of their previous gross earnings (around 72 % of their net earnings).

-Employers shall receive a compensation of 36 % of the previous gross earnings of employees who are in partial employment (instead of currently 60 %). The authorisation period for the use of the JPA shall increase from 12 months to 3 months, renewable up to a maximum of 6 months, over a reference period of 12 months.

-Protected sectors and administratively closed companies shall in due course no longer benefit from increased support rates.

In addition to this general short-time work scheme (ADPC), a longer-term short time work scheme (APLD) was created to support firms experiencing a lasting shock but with significant prospects of recovery in the medium term. The APLD entered into force on 1 July 2020 and is accessible through the conclusion of a branch, company or establishment agreement. Based on social dialogue, the APLD agreements detail employers’ commitments on job retention and professional training. In 2021, the level of financial support shall decrease:

-Employers shall receive an allowance of 60% of the previous gross earnings of employees placed in partial employment, instead of 70% currently received in protected sectors and closed enterprises.

Reform C8.R3: Health and security at work

An inter-professional negotiation was launched in June 2020 with a view to inviting the social partners to further develop prevention in enterprises and to adapt this model of governance. This led to the national inter-professional agreement “on enhanced prevention and renewed supply of health at work and working conditions” of 10 December 2020, which reinforces occupational health prevention in enterprises and the provision of services by SPST (Prevention and Health at Work Services) to businesses and employees. This inter-professional agreement was transposed into a law adopted by the National Assembly on 17 February 2021, aiming to provide a more effective and preventative occupational health workforce system and to prevent occupational fatigue by linking exposure to risks and career paths. It intends to:

-Enhance prevention within companies as part of a risk assessment approach through social dialogue, the definition of an annual prevention programme and the creation of a prevention passport;

-Define the service offered by prevention and health services (SPST) with a core set of services in the fields of prevention of occupational risks, individual monitoring and prevention of professional disincentives;

-Support temporary staff or contractors, as well as self-employed workers through the further involvement of SPST;

-Better address professional exclusion through dedicated SPST cells, the creation of “mid-career” medical visits, and of “pre-restarting appointments” to prepare for a successful return to work;

-Better integrate occupational health within the overarching health system to allow medical practitioners trained in occupational health training to monitor health at work;

-Strengthening SPST teams through the possibility for qualified nurses to work in advanced practice and the development of task delegations within SPST

Adapt the governance of health at work, by setting up a National Committee for Prevention and Health at Work with the task of defining both the mandatory services offered by SPST and the framework for certification of SPST.

Within the recovery and resilience plan, the measure consists of the adoption of a series of amendments, which aim at increasing the focus of the “health at work” system on prevention, as well as reorganising the governance and functioning of the institutions responsible for “health at work”.

Reform C8.R4: Reform of the unemployment insurance

The reform of unemployment insurance, designed to promote sustainable employment and limit the overuse of short term contracts, was initially planned to enter into force gradually between November 2019 and March 2021, but was postponed due to the COVID-19 crisis.

The objectives of this reform are to strengthen incentives to return to stable employment and to limit the alternation of short contracts and periods of unemployment. For businesses, the aim is to limit the excessive use of short contracts. The reform consists in 3 main measures concerning compensation, as well as a “bonus-malus” measure determining employers’ contributions to the scheme.

The second part of the reform, which has been included in the recovery and resilience plan, consists of the following measures:

-New method for calculating the benchmark daily wage (SJR), which is the basis for determining the amount of the allowance;

-Sliding scale for reducing benefits awarded to high-income recipients after six months of compensation;

-Restriction of conditions of access to benefits (six months instead of four); 

-Bonus-malus of employers’ contributions to unemployment insurance to disincentivise excessive use of short term contracts.

These measures shall enter into force at the earliest in 2021, as soon as pre-determined levels of economic activity and employment are reached, as measured by the following indicators:

-Decrease by 130 000 of the number of unemployed registered with Pôle Emploi (over six months)

-More than 2 700 000 hiring declarations for contracts of more than one month (cumulative over four rolling months).

Investment C8.I1: FNE-Training

FNE-Training is dedicated to training employees who are benefitting from short-time work schemes. This professional training is aimed at fostering upskilling and reskilling. Companies that place their employees in partial employment often need to invest in training to help their activity bounce back and adapt to recent technological or economic changes. While necessary, it is harder for companies to invest in times of economic contraction. FNE-Training comes in to support and encourage such training, which benefits both the employee, enhancing his employability, and the company, improving its competitiveness. On a broader scale, this also benefits the economy, by promoting the development of skills in high demand on the labour market.

The measure shall finance the training of beneficiaries in short-time work schemes in 2020 (starting from 1 March of that year) and 2021, with levels of support ranging from 40% to 100% depending on the size of the enterprise and the timeframe during which the training was initiated.

Investment C8.I2: Reskilling through dual training programmes (Pro-A)

In a context of major changes in the labour market, the Pro-A programme enables employees, particularly those with insufficient qualifications, to focus on their professional development and facilitate a change of profession, through dual training leading to a professional certification.

The employee alternates between training in a formal setting delivered by a training body and professional activity in the company, for a duration of 6 to 12 months (possibly extended to 24 for certain qualifications and target populations). The training may take place during or after working hours. The skills operator may cover part or all of the training costs, transport and accommodation costs, as well as the employee’s remuneration during his Pro-A.

This measure will finance the professional transition for 90 000 beneficiaries between 2021 and 2023.

Investment C8.I3: Hiring subsidies for apprenticeships

The measure shall consist of a financial subsidy for employers’ of apprentices during their first year of contract, adding up to maximum EUR 8 000 for over 18-year-olds, and EUR 5 000 for minors.

While the aid is open to all companies, companies with 250 or more employees must meet one of the following conditions:

-to reach 5% of contracts supporting professional insertion in 2021 (apprenticeship and professionalisation contract, VIE, CIFRE);

-or at least 3% of their workforce participating in dual training programmes (apprenticeship and professionalisation contract) in 2021, as long as there has been at least a 10% increase since 2020.

For any apprenticeship contract submitted by the Competence Operator (Opco), the support shall be paid monthly in advance of the remuneration by the Service and Payment Agency (ASP) and from the start of the contract.

Investment C8.I4: Hiring subsidies for professionalization contracts

These targeted hiring subsidies provide support to employers who recruit an employee preparing a diploma, certificate or professional qualification referred to in a national classification of certificates.

The measure consists of a monthly financial subsidy for employers during the first year of a professionalization contract, adding up to maximum EUR 8 000 for employees between 18 and 30 years of age, and EUR 5 000 for minors. These amounts correspond to 50% of the salary of under 18s, 65% of those 21-30, and 50% of those aged 21-30.

Investment C8.I5: Hiring subsidies for youth under 26

The measures consists of a hiring subsidy for youth under 26 in moderately qualified or entry-level jobs (salary limited to twice the minimum wage), to be paid for the conclusion of a fixed-term contract of at least 3 months or an open-ended contract between 1 August 2020 and 31 March 2021. The maximum level of support is EUR 4 000 over a year, with payments four times a year. This measure has been extended until May 31st 2021, but is now limited to salary less than or equal to 1,6 times the minimum wages.

Investment C8.I6: Creation of jobs for youth in the sports sector

This measure provides financial support for up to two years upon creation of a job in the sports sector, aimed at employing youth under 25. 80% of the job creations supported by the National Sport Agency subsist beyond the duration of the aid. This measure thereby supports the creation of permanent and non-relocatable jobs, helping youth enter durably the labour market, all while promoting health and exercise opportunities for the general population.

Investment C8.I7: Boarding schools for excellence

Boarding schools for excellence aim to provide students, in particular those from disadvantaged backgrounds, with an environment better suited to learning, developing their skills and broadening their educational aspirations.

However, many of the existing boarding schools are no longer well adapted to current needs, leading to low occupancy rate. Renovation shall both contribute to energy savings and to the modernisation of these facilities, reinforcing the attractiveness of these educational opportunities. This measure will finance the renovation or creation of 1500 places in boarding schools for excellence by September 2022. A 50% co-financing rate will be applied, with local authorities financing half of the cost of these renovations.

Investment C8.I8: “Roped together for success” (Cordées de la réussite)

The “Roped together for success” programme is a long-term coaching set-up between higher education students (“tutors”) and secondary school students from disadvantaged areas (priority education and rural areas). The aim is to broaden the ambitions and horizons of these students, and to help them build their own personal and professional project. This is achieved through a combination of personal mentoring and group activities fostering further cultural and social openness (e.g. visit to museums and public institutions, visit of various professional sectors and workplaces, participation in conferences, awareness-raising actions on stereotypes, soft skills development such as public speaking). The activities are adapted to the students’ age, as they can enrol in the programme at around 13 years of age and are expected to continue participating until their graduation from secondary education.

This programme is based on the partnership between, on the one hand universities or higher education establishments (such as high schools also offering post-baccalauréate 2-year preparatory classes) and, on the other hand middle and high schools from rural or disadvantaged areas who commit to enrolling 30% of their students within a given age group in the programme. These 3-year partnerships are selected by regional committees through calls for projects.

This measure will finance the participation of 185 000 students in the programme.

Investment C8.I9: State-backed guarantees for student loans

Student loans that are backed by State guarantees are meant to help students under 28 years of age to finance their studies. The State guarantee enables students that are unable to provide a personal guarantee to access a credit necessary to the financing of their studies.

The loan repayment may be deferred until the degree is obtained. The maximum amount borrowed is EUR 15 000 for a minimum of two years. The increase in the State provision, finances through this measure, should enable five times more students to benefit from these guaranteed loans. Therefore, this measure should finance the State guarantees for at least 100 000 student loans.

Investment C8.I10: Personalised pathways for NEET youth aged 16-18

This measure offers short term support to early school leavers, notably given their extra difficulties following the Covid-19 crisis and resulting lockdowns, with an aim of helping address in the longer term the exclusion of low-skilled youth from the labour market.

The measure shall provide tailored support to NEET minors. The objective is to offer each 16-18 year-old that has been identified as not complying with the training obligation a solution according to his needs and professional project. The 15-week programme is constructed to provide youth with the opportunity to work on soft skills, discover career options, and receive comprehensive support (social, sports, cultural) in a fully immersive programme providing meals and accommodation.

Investment C8.I11: Creation of places in higher education

Exceptional results at the Baccalaureate exam have resulted in a significant increase in the number of students that started higher education in the fall of 2020. The measure shall consist of creating additional training places in higher education, which aims at providing solutions to youth and increasing the training offer for economic sectors in high demand.

The measure shall include the opening of additional places in short and vocational trainings; in bachelor, nursing schools and in paramedical training following notably the current context and the Ségur de la Santé agreement.

Investment C8.I12: Plan for youth: higher education for post-baccalaureate students

Given the need for additional places in higher education, this investment complements the investment in the creation of places in higher education, with opening up of places in shorter two-year diplomas as well as one-year trainings.

Additional places shall be created by September 2021, in the following areas:

-places for two-year BTS;

-places for one-year CAP;

-places open in local initiative training and other complementary trainings;

-places for three-year CAP.

Investment C8.I13: “Personalised guidance towards employment and autonomy” (PACEA) and youth guarantee

The “personalised guidance towards employment and autonomy” (PACEA) consists in an integrated contractual framework to support NEET youth (16-25) at risk of labour market exclusion. An initial diagnosis helps identify the needs and expectations of each youth, followed by phases of individual support of varied duration, up to a maximum of 24 months. These phases are defined on an individual basis and may include training, or a work placement, participation in civic service or voluntary work.

The youth guarantee, under the PACEA, combines a 12 month programme consisting in work experience and training as well as personalised guidance, with a monthly subsidy to support their participation in the programme.

This measure shall finance the subsidies paid to youth participating in both the PACEA and the “Youth guarantee”.

Investment C8.I14: Aided contracts for youth (PEC and CIE)

Young people entering the labour market are among those most affected by the negative impact of the COVID-19 crisis. Helping young people furthest from employment therefore calls for reinforced measures, such as subsidised contracts targeted at youth, in both the non-profit (PEC) and the for-profit sector (Employment Initiative Contracts (CIE)).

These subsidised contracts, lasting between 6 and 24 months (barring exceptions listed in the Labour code), combine an offer of employment with increased access to training and individualised guidance with an employment counsellor.

In the non-profit sector (PEC), the monthly compensation paid to the employer amounts to 65% of the gross minimum wage for the hours worked, with contracts averaging 21,3 hours per week (minimum of twenty hours).

In the for-profit sector (CIE), the compensation paid to the employer amounts to 47% of the gross minimum wage, with contracts averaging 30 hours per week (minimum of twenty hours).

This measure shall finance 65 000 aided contracts (PEC and CIE combined) concluded in 2020 and 2021.

Investment C8.I15: Support to employers for hiring of persons with disabilities (AMEETH)

This targeted hiring subsidy is paid to any employer hiring between 1 September 2020 and 30 June 2021 an employee with a disability, for a fixed-term contract of minimum three months or an open-ended contract. The hiring subsidy is granted for jobs with salaries up to twice the minimum wage, and the maximum amount of the support is EUR 4 000 over a year.

This measure shall finance at least 12 500 hiring subsidies in 2021 for the recruitment of persons with disabilities.

Investment C8.I16: Extension of the “guided employment” plan for persons with disabilities

The “Guided employment” support scheme consists in providing individualised guidance to persons with disabilities to help devise a tailored project, based on the “place and train” approach. Both the employer and employee may be supported over the medium-term, based on the intensity of the needs (from two hours per month to over twelve hours per month for the most intensive phases).

This support scheme is articulated through four distinct modules which may be adapted to the individual situation:

a)Evaluation of the situation of the worker with a disability, taking into account his professional project, his abilities and needs, as well as, if relevant, the needs of the employer

b)Elaboration of the professional project and assistance in its implementation with a view to rapidly integrating employment in a standard working environment

c)Assisting the beneficiary in finding employment

d)Support during employment, to facilitate access to trainings, as well as skills assessments and where necessary providing intermediation with the employer to adapt the working conditions and environment to specific needs.

The support is mainly provided by a trained job coach, who acts as reference point for the employee and employer. This measure shall finance the extension of the support scheme. While the number of beneficiaries is not known upfront, due to significant variations in the level of support provided, it shall be reported upon ex post, once the extension has been fully implemented.

Investment C8.I17: Distance training courses

Developing distance learning courses contributes to social and territorial cohesion by providing training opportunities for persons who may have been previously excluded due to mobility constraints (persons with disabilities, or residing in rural areas, or caring for other persons) and therefore better reaching target groups, including unemployed persons, and promoting lifelong learning. Moreover, the overall digitalisation of courses may contribute to the acquisition and development of basic digital skills.

This investment shall finance the opening of an additional 30,000 distance training courses organised by the national employment agency, Pôle Emploi. The measure also includes remuneration over eight months for an estimated 42% of the participants.

Investment C8.I18: Digital educational content: platforms for digital content

The Covid-19 crisis and resulting sanitary measures have highlighted the importance of distance learning and digital tools and modules. Professional training should be offered with greater flexibility, combining onsite, hybrid and distance learning possibilities. To harness the potential of these new digital tools, the measure shall consist of supporting trainings with innovative “immersive” modules. The integration of immersive modules (based for instance on virtual reality) in courses shall be developed based on 15 pilot courses. This shall then be expanded to around 100 additional courses with immersive modules. Moreover, calls for interest and projects shall finance the transition towards hybrid training models for training bodies by supporting innovative projects.

Investment C8.I19: Additional allocation for the “Pro transitions” associations (AT pro) for the financing of professional transitions

Professional transitions and reorientations enable the reallocation of resources across economic sectors, by providing employees with skills better adapted to the current economic context. Professional transitions are financed notably by the dedicated “Transition Pro” associations (AT Pro) which cover the training and other costs, remuneration and related social costs. There is high demand for such guided career changes, as in 2019, over 35 000 requests were received and only 18 231 financed. The measure shall consist of financing for additional transitions, for which there is high demand.

At regional level, the “Transition Pro” associations have been tasked with drawing up a comprehensive list of jobs and certifications which may benefit from financing under the recovery and resilience plan. This list shall focus on the jobs with high employment perspectives in the region, in accordance with the priorities set out in the recovery and resilience plan (green transition, digital transformation of the economy).

Investment C8.I20: Top-up of individual learning accounts for digital skills

To foster the acquisition of digital skills across the workforce, access to trainings specifically focusing on digital skills or digital careers will be reinforced, by enabling individuals to sign up to such trainings through their individual learning accounts. This will not only increase the employability of the participants, and on a wider scale contribute to addressing the issue of skills mismatch across the workforce.

Individual learning accounts shall be topped up with a EUR 1 000 credit, which may be used for trainings linked to digital skills or digital careers. Around 400 trainings have been authorised for this use, which may be attended during working hours provided the employer agrees. Once the training has been completed, the cost is paid to the training body.

Investment C8.I21: Increase of resources for France Compétences

The measure is for a grant to France Compétences, the national authority responsible for the regulation and financing of apprenticeships and professional training, subject to a vote by the Board of Directors of the establishment, by 30 November 2021, of a balanced budget for 2022. Due to fewer resources linked to the economic crisis, additional one-off support was necessary for France compétences to be able to respond to the highly increased demand in apprenticeships. The measure shall finance an expected additional 160 000 apprenticeship contracts by 31 December 2023.

This investment shall increase temporarily the payments made by France Compétences to skills operators (OPCO), which cover, in particular, the costs of training apprentices. Ensuring that educational costs are covered is an important factor in the use of apprenticeships for the employer.

Investment C8.I22: Increase of resources for Pôle Emploi

Pôle Emploi shall recruit 1000 counsellors on fixed-term contracts, which shall provide further support to jobseekers in times of economic difficulty. These additional recruitments shall enable the Agency to provide guidance to the additional jobseekers resulting from the current economic crisis, which are expected to further increase once the economic support to enterprises (such as short-time work schemes) is gradually phased out.

Moreover, the additional counsellors shall implement the new Pôle Emploi services as defined in the tripartite agreement 2019-2022. This includes the “Starter Pack” for newly registered jobseekers, a two half-day induction programme replacing the former 40 minute interview, which aims at ensuring effective employment support from the very beginning. More generally, the deployment of the “global approach” which provides intensive support to the most vulnerable jobseekers for 9,5 months on average also requires additional resources which Pôle Emploi shall provide through these recruitments.

H.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicators (for milestones)

Quantitative indicators (for targets)

Indicative timeline for completion

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

8-1

C8.R1: Reform of the provision of services by the unemployment agency

Target

Agencies having integrated Cap’Emploi services 

Number

0

700

Q4

2022

Number of Pôle Emploi agencies having integrated Cap’Emploi services.

8-2

C8.R1: Reform of the provision of services by the unemployment agency

Target

Agencies with a compensation counsellor 

Number

0

700

Q4

2022

Number of Pôle Emploi agencies having implemented the “compensation counsellor” set-up.

8-3

C8.R2: Reform of short-time work schemes 

Milestone 

Short-time work scheme reform to boost economic activity through a gradual restriction of the generosity and stricter access conditions to the schemes 

Entry into force

Q3

2021 

The adaptations consist in:

·Decrease in levels of compensation for employers and employees

·Decrease of the validity of authorisation period for recourse to short-time work scheme (from 12 months to 3 months, renewable over a 12 month period) 

·Phasing out of increased support rate for protected sectors and administratively closed companies

8-4

C8.R3: Reform of health and security at work 

Milestone 

Adoption of amendments to the law aiming at providing France with a more effective system of “health at work” actors, focusing on prevention on the one hand, and on the other hand reorganising the governance and functioning of the institutions responsible for “health at work” 

Entry into force

Q4

2021 

Adoption of amendments to the law aiming at providing France with a more effective system of “health at work” actors, focusing on prevention on the one hand, and on the other hand reorganising the governance and functioning of the institutions responsible for “health at work”. 

8-5

C8.R3: Reform of health and security at work 

Target

Services for health and security at work equipped with secure digital tools

Number

0

165

Q2

2026 

Number of services for health and security at work equipped with secure digital tools.

8-6

C8.R4: Reform of the unemployment insurance

Milestone

Entry into force of several measures of the reform of the unemployment scheme

Entry into force

Q4

2021 

Entry into force of several measures relating to: 

·New method for calculating the benchmark daily wage (SJR);

·Sliding scale for reducing benefits awarded to high-income recipients after eight months of compensation;

·Entry into force of the first step of the “bonus malus” 

8-7

C8.R4: Reform of the unemployment insurance 

Milestone

Automatic entry into force of the remaining measures once economic conditions improve

Entry into force

Q4

2022 

Automatic entry into force of the remaining measures once economic conditions improve: 

·Restriction of conditions of access to benefits (six months instead of four) 

·Sliding scale for reducing benefits awarded to high-income recipients after eight months of compensation;

8-8

C8.I1: FNE-Training

Target

Participants in FNE-Formation training courses

Number

0

400 000

Q4

 2022

Number of trainings and other actions (validation of acquis, competence assessment).

8-9

C8.I2: Reskilling through dual training programmes (Pro A)

Target

Employees benefitting from the Pro-A programme 

Number

0

90 000

Q4

 2023

Number of employees participating in reskilling through dual training programmes (Pro-A).

8-10

C8.I3: Hiring subsidy for apprenticeship contracts

Target

Hiring subsidies paid for apprenticeship contracts 

Number

0

333 374

Q4

2021 

 

 

Number of apprenticeship contracts for which a hiring subsidy has been paid to the employer.

8-11

C8.I4: Hiring subsidy for professionalisation contracts

Target

Hiring subsidies paid for professionalization contracts 

Number

0

100 000

Q1

2022 

 

 

Number of professionalization contracts for which the exceptional professionalization subsidy has been paid to the employer.

8-12

C8.I5: Hiring subsidy for youth under 26 

Target

Hiring subsidies paid for contracts hiring youth under 26 

Number

0

337 000

Q1

2021 

 

 

Number of contracts for which the youth hiring subsidy has been paid to the employer.

8-13

C8.I6: Creation of jobs for youth in the sports sector 

Target

Jobs created in the sports sector which benefit from a subsidy

Number

0

2500

Q3

2023

Number of jobs created in the sports sector which benefit from a subsidy.

8-14

C8.I7: Boarding schools for excellence 

Target

Places either built or renovated

Number

0

1500

Q3

2022

Number of places either built or renovated in “Boarding schools for excellence”.

8-15

C8.I8: « Roped together for success » 

Target

Students participating in the « cordées de la réussite » programme 

Number

0

185 000

Q3

2021 

Number of students participating in the “cordées de la réussite” programme.

8-16

C8.I9: State-backed guarantees for student loans 

Target

Beneficiaries of State-guaranteed student loans 

Number

0

100 000

Q4

2022

Number of beneficiaries of state-guaranteed student loans, following the amendment of the agreement with Bpifrance increasing the State provision.

8-17

C8.I10: Personalised courses for NEET youth aged 16-18 

Target

Youth entering the AFPA activities

Number

0

10 500

Q1

2022

Number of youth aged 16-18 entering the personalised course offered by the national agency for professional training of adults (Afpa).

8-18

C8.I11: Creation of places in higher education 

Target

Places in higher education created 

Number

0

30 000

Q4

2022

Number of places in higher education created, as reported through Parcoursup.

8-19

C8.I12: Plan for youth: higher education 

Target

Places in higher education created 

Number

0

16 000

Q3

2021 

Number of places in higher education created, as reported through surveys by Academies.

8-20

C8.I13: PACEA and Youth guarantee 

Target

Additional beneficiaries of the PACEA and youth guarantees as of 2021 

Number

0

130 000

Q1

2022 

Number of youth having entered the PACEA and youth guarantee in 2021, as reported by local missions.

8-21

C8.I14: Aided contracts for youth (PEC and CIE) 

Target

Additional aided contracts

Number

0

65 000

Q1

2022 

Number of additional aided contracts, for youth PEC and for youth CIE, as reported by Pôle Emploi.

8-22

C8.I15: Support to employers for hiring of persons with disabilities (AMEETH) 

Target

Subsidies paid 

Number

0

12 500

Q2

2021 

Number of hiring subsidies paid for the hiring of an employee with disabilities.

8-23

C8.I16: Extension of the “accompanied employment” plan 

Milestone

Full deployment of the extension of the “accompanied employment” plan

Report evidencing completion

Q2

2023 

Full deployment of the extension of the “accompanied employment” plan supporting persons with disabilities.

8-24

C8.I17: Distance training courses 

Target

Entries into distance training courses 

Number

0

30 000

Q4

2023 

Number of entries into distance learning courses as proposed by Pôle Emploi.

8-25

C8.I18: Digital educational content: platforms for digital content 

Target

Training bodies declaring having trained participants either in part or fully through distance learning 

Number

0

15 000

Q4

2023

Number of training bodies declaring having trained participants either in part or fully through distance learning in their Education and Financial Statement.

8-26

C8.I18: Digital educational content: platforms for digital content 

Milestone

Support for project management assistance to support the design and dissemination of digital content

Transmission of deliverables

Q4

2022

Deliverables produced as part of the support for project management assistance aimed at supporting the design and dissemination of digital content (including the project files for the 15 pilot courses to be produced)

8-27

C8.I19: Additional allocation for the “Pro transitions” associations (AT pro) for the financing of professional transitions 

Target

Additional professional transitions financed  

Number

15 937

19 837

Q4

2022 

Increase in the number (+3 900) of financed professional transitions started in 2021, as compared to the total number of professional transitions financed in 2020.

8-28

C8.I20: Top-up of individual learning accounts for digital skills 

Target

Persons having used their topped-up ILA to sign up to a training for digital skills registered in the national repository of professional skills 

Number

0

22 500

Q1

2022 

Persons having used their topped-up ILA to sign up to a training for digital skills registered in the national repository of professional skills. 

8-29

C8.I21: Increase in the resources of France Compétences 

Milestone

Signature of the agreement with France Compétences

Signature of the agreement

Q1

2021 

Signature of the agreement by the French State and France Compétences to increase the financial resources of France Competences by EUR 750 000 000.

8-30

C8.I21: Increase in the resources of France Compétences 

Target

Additional apprenticeship contracts signed 

Number

335 421

495 000

Q4

2023

Number of additional apprenticeship contracts signed (+160 000) between 2021 and 2023, as compared with the 2019 baseline, as reported by competence operators.

8-31

C8.I22: Increase in the resources of Pôle Emploi 

Target

Pôle Emploi counsellors recruited

Number

0

1 000

Q4

2022

Number of Pôle Emploi counsellors recruited with fixed term contracts. 

I. COMPONENT 9: Research, Health and Dependence, Territorial cohesion

The overall goal of this component of the French recovery and resilience plan is to strengthen social and territorial cohesion in the broad sense. In particular, it focusses on health, digital, research and higher education with eight investments and three reforms.

The component includes investments in the health sector across the territory, including modernisation and renovation of infrastructures and the digitalisation of health. Those investments shall be accompanied by several reforms of the health and long-term care systems focused on enhancing the careers of caregivers, defining investment policies, simplifying the organisation, and reforming the elderly care and autonomy.

The component also includes a measure to accelerate digital connectivity throughout the territory via an investment boost in the ultrafast broadband plan ‘France très haut débit’. It shall be accompanied by a digital inclusion measure to allow access to digital tools for everybody.

Public research shall be supported by additional funding of the National Research Agency, allowing increased success rates of research calls for projects. The Investment for the Future Plan (PIA4) shall dedicate calls for projects to improve the standards in higher education by promoting excellence, helping search for funding and improving organisation.

The component 9, answers Country Specific Recommendation 2020.1.2 on improving the resilience of the health system, Country Specific Recommendations 2019.3.3, 2020.3.4 and 2020.3.7 on investing in the digital transition and infrastructures, and Country Specific Recommendations 2019.3.1 and 2020.3.8 on investing in research and development. It also addresses Country Specific Recommendations 2020.3.2 and 2020.3.3 by unlocking public investments while promoting private investment.

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01).

I.1.    Description of the reforms and investments for non-repayable financial support

Reform 1 (C9R1): National Strategy for the Transformation of the Health System

The national strategy ‘Ma Santé2022’ took shape in July 2019 with the adoption of the Law on the Organisation and Transformation of the Health System. Its aim is a better organisation of the health system at local level, in particular by setting up new local health structures with the objective of a better coordination between care segments (such as the territorial professional health care communities). This national strategy has been reinforced by a number of successive reform strands, including the ‘Investir pour l’Hôpital’ plan (November 2019), the ‘Ségur de la Santé’ plan (July 2020) and a law aimed at simplifying the governance of hospitals (‘loi visant à améliorer le système de santé par la confiance et la simplification’ adopted by the Parliament in April 2021). The objective of the latter, as a measure under the French recovery and resilience plan, is to reform hospital governance allowing for more flexibility in the organisation and functioning of hospitals and providing hospital units with an increased role in the decision-making.

Reform 2 (C9R2): Creation of a new branch of social security covering the risk of loss of autonomy

In order to improve the provision of care for the elderly and disabled, the measure shall provide for the creation of a fifth branch within the general social security system covering the risk of loss of autonomy in addition to the pre-existing branches (covering the risks of sickness, retirement, family, work-related accidents and occupational diseases). The Social Security Financing Law (LFSS) for 2021 defines the first measures for organising the governance and financing of this fifth branch. The entire financing of medico-social establishments is transferred to this fifth branch of social security.

Investment 1 (C9I1): Digital health

The measure aims at accelerating the development of digital tools in the health sector

It consists of four sub-measures:

·State digital infrastructure in the field of health:

This investment shall accelerate the deployment of State information systems: the shared medical record, the digital health platform, one-stop shop for all digital services for healthcare professionals, electronic identification cards for healthcare professionals.

·interoperability and safety of the software used by the public and private healthcare sectors

This investment aims at upgrading the existing software already used in the public and private sector to make them compatible with the interoperability and security requirements imposed by the State. This investment shall prioritise technological investment to promote the exchange of health data such as hospital release documents, biology reports, radiology reports and images, prescription and liaison letters.

·support and incentivise healthcare professionals in the digital transition

This investment shall finance the deployment of software and support users. It shall also provide financial support to incentivise healthcare professionals to use digital services, in particular the shared medical record.

·digital catch-up of the social medicine

This investment aims at equipping social medicine facilities with digital infrastructure such as internet connection, computers and software. Concretely, professionals of the same region shall invest jointly to lower the cost and ensure coherence.

Investment 2 (C9I2): Modernisation and restructuring of hospitals and health care supply

As announced in the Health Segur plan, the government has committed to increasing investment support for hospitals and health care facilities. A part of these investments concerns the complete renovation and the modernisation of hospital buildings, also with a view to increasing their energy efficiency (improved insulation of buildings to improve thermal comfort, better performance of technical installations reducing consumption). Other investment projects concern the construction of outpatient facilities and the modernisation of medical infrastructure and equipment (such as the equipment of surgical rooms and the development of outpatient services).

The measure shall also finance investments to comply with safety and environmental standards (such as safety of equipment and health products, equipment to improve the working conditions, waste management).

The Regional Health Agencies shall be responsible for identifying and examining the investment needs of hospitals with regard to the specific needs of their territories.

Investment 3 (C9I3): Renovation of medico-social establishments.

This investment is aimed at the renovation, transformation and equipment of the French medico-social sector, in particular Establishments for Dependent Elderly Persons (EHPAD) over the period 2021-2025, in order to increase their accommodation and care capacity in anticipation of future demographic changes and to contribute to the ecological transition through energy efficient projects.

This measure shall consist of supporting investments in the medico-social sector for the renovation or reconstruction of the most obsolete EHPAD, mainly in the public sector. Examples of investments include renovation and extension projects for public EHPADs, including the construction or renovation of individual rooms and individual sanitary facilities, the development of reception areas, the upgrading of facilities to accessibility standards, and the creation of facilities adapted to people with cognitive disorders.

The selection criteria for projects shall be defined at national level by a committee involving the Caisse nationale de solidarité pour l'autonomie (CNSA) and the Directorate-General for Social Cohesion of the Ministry of Solidarity and Health. This measure shall be implemented by the CNSA from 1 January 2021 onwards, which shall delegate a share of the investment credits over a five-year period to the Regional Health Agencies each year. Each Regional Health Agency shall carry out its annual programming, after examining the projects submitted by the managers of establishments, in line with the eligibility criteria defined at national level.

Investment 4 (C9I4): National suicide prevention hotline

The implementation of a national suicide prevention hotline is part of the national health strategy 2018-2022 and is one of the actions announced in the ‘Ségur de la santé’ plan. The measure shall cover the deployment of a national hub and regional platforms.

Investment 5 (C9I5): High -speed broadband plan

The initial high-speed broadband plan (‘plan France très haut débit’) aimed at improving the connectivity in the territory and provide by 2022 nation-wide “very high speed” access of at least 30 Mbps. The strategy has been revised to increase the level of ambitions, improving connectivity in rural areas, with support of the French recovery and resilience plan.

The measure shall encourage the acceleration of the deployment of Next Generation Access (NGA) networks, in particular in optic fibre, with speeds above 100 Mbps and generally exceeding 1 Gbps. The projects shall take place in the so-called “public initiative networks”, zones for which the private investment is difficult to attract and concern the following territories: Aude, Auvergne, Bretagne, Cher, Dordogne, Doubs, Haute-Savoie, Indre, Manche, Mayotte, Sarthe and Seine-et-Marne. Part of the funds shall also be dedicated to premises with complex technical connections, in all of the country. The government’s overarching goal is to provide full NGA access by 2025, in line with the Gigabit society objectives.

Investment 6 (C9I6): Digital Inclusion

The action builds on an existing initiative to support digital inclusion and it will train additional 4 000 digital advisers that shall be hosted by local authorities and private actors from associations or from the social and solidarity economy (such as town halls, libraries, retirement homes, nursing homes, social action centres and local associations). These digital advisers shall organize workshops and offer training sessions to enable everyone to gradually take ownership of everyday digital tasks, such as to protect their personal data, master social networks, check sources of information, make a CV, sell an item, buy online, work remotely or schedule a doctor appointment. They shall be trained in advance of their activities and continuously in order to offer quality services to the people supported but also to prepare for the continuation of their mission beyond the two years supported by the recovery and resilience plan.

The measure shall in parallel support the local networks that offer digital activities (clear labelling, development of training kits, support to the development of pedagogic solutions) as well as supporting the development of “digital helpers” (‘Aidants Connect’) that directly help people performing digital tasks.

Investment 7 (C9I7): R&D recovery strategy (National Research Agency)

The research programming law (see component 6) sets up the budget increase trajectory of the National Research Agency from EUR 1 190 000 000 in 2021 to EUR 1 674 000 000 in 2027. The measure shall complement this increase by boosting the allocation in 2021 and 2022.

This additional investment shall raise the success rate of call for projects and bring it from the current 16% to up to 23%, comparable to the best research agencies worldwide. An intermediate step of reaching 20% by 2021 is expected to translate into around 2300 selected projects out of 10,000-11,500 submitted for the year. It shall better fund fundamental research in all disciplinary fields and in particular ensure the financing of all the excellence projects including the risky and innovative projects on which the recovery is expected to be based.

Investment 8 (C9I8): Support teaching, research, development and innovation ecosystems (PIA4)

This envelope of the PIA4 (Investments for the future, Plan d’Investissements d’Avenir) aims at supporting innovation in the fields of teaching (from kindergarten to university) and research. The measure shall be dedicated to three calls for projects.

·The first one, "Excellence in all its forms", shall support the transformation projects of higher education institutions in order to reach the best international standards. Transformation is understood as any significant evolution of the institution or the site contributing to develop their potentialities in all of their missions, or in the missions, considered as the most important for the institution or the site, as part of their strategic project. The objective is to consolidate and strengthen French academic communities in all their diversity and help them achieve the ambition they set for themselves.

·The second one shall support the diversification of the funding resources of higher education and research institutions. It shall provide support in creating or transforming services dedicated to support in setting up projects and by supplementing the funding received by the institutions. It would constitute a lever to encourage institutions to diversify their resources (funds obtained from the European Union, in terms of training and funds raised within the framework of philanthropy and sponsorship).

·The third call for projects is dedicated to transforming school education by promoting innovation and new forms of organization and management. Several priorities shall be followed:

oEducational emergency areas: identify pupils who drop out of school in target areas, to strengthen educational resources in order to bring them up to standard.

oNational platform "being a parent": offering, in particular via digital technology, a new approach strengthening the role, link and commitment of parents in school.

oZero dropout territories: set the ambition to totally reduce dropout in secondary and higher education through innovative interministerial, associative and regional intervention methods.

oTerritories of learning paths: in conjunction with businesses, significantly increase work-study training by developing innovative solutions, promoting solutions for integrated care for young people (housing, mobility, employment contract), ensuring follow-up for young people to avoid ruptures.

The terms of reference for upcoming calls for projects shall include as an eligibility criterion to ensure the environmental neutrality of the applications of the funded solution, in a way that ensures that the measure complies with the ‘do no significant harm’ principle of Regulation (EU) 2021/241. This shall complement the fact that, whenever applicable, environmental criteria are part of the selection criteria for projects, and that operators are required to produce a critical analysis of their proposals based on internal and external expertise; that the green transition is listed by law as one of the objectives of the PIA, and that the PIA’s governing bodies must ensure the application of these objectives, which is monitored through a dedicated indicator. This shall lead to the exclusion of (i) activities related to fossil fuels, including downstream use 35 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 36 ; (iii) activities related to waste landfills, incinerators 37 and mechanical biological treatment plants 38 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. 

I.2.    Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

Qualitative indicator for milestones

Quantitative indicator for target

Time

Description of each milestone and target

Unit

Baseline

Goal

Quarter

Year

9-1

C9.R1

National Strategy for the Transformation of the Health System

Milestone

Vote and publication of the bill to improve the health system (simplification of the governance of hospitals). 

Entry into force

Q4

2021

Entry into force of the bill to improve the health system through confidence and simplification, which shall make it possible to give establishments more flexibility in their organisation, to re-medicalise hospital governance, and to give the hospital service a greater place in decision-making.

9-2

C9.R1

National Strategy for the Transformation of the Health System

Target

Credit commitment rate for the upgrading of human resources in health 

Percentage

90%

Q4

2023

Credit commitment rate for the upgrading of human resources in health. 

9-3

C9.R2

Creation of a new branch of social security covering the risk of loss of autonomy

Milestone

law for the creation of a new branch of social security dedicated to supporting the independence of the elderly and people with disabilities

Entry into force

Q3

2020

Publication in the Official Journal of the Law No 2020-991 of 7 August 2020 on social debt and autonomy, which provides for the creation of a new branch of social security dedicated to supporting the independence of the elderly and people with disabilities.

9-4

C9.I1

Catching up on technical standards for digital health

Target

State digital infrastructure in the field of health

Number

(in million)

9,5

40

Q4

2024

Number of patients having a national electronic health record and a secured health email address.

9-5

C9.I1

Catching up on technical standards for digital health

Target

Finalisation of interoperability and security of installed fleet software and support and incentivise healthcare

Number (in million)

3

15

Q4

2024

Digital documents prepared by healthcare professional (such as biology reports, radiology reports, hospital reports and certificates) and saved in the new system.

9-6

C9.I1

Catching up on technical standards for digital health

Target

Digital catch-up of the social medicine

Number

0

410000

Q4

2024

Number of active electronic medico-social records. 

9-7

C9.I2

Modernisation and restructuring of hospitals and health care supply

Target

Establishments supported in their investments in technical installations, equipment or light renovation

Number

0

800

Q1

2023 

Number of establishments to which the ARS (Regional Health Agency) has allocated credits investments in technical installations, equipment or light renovation. Cumulative calculation: number of different health care institutions that received these credits.

9-8

C9.I2

Modernisation and restructuring of hospitals and health care supply

Target

Number of investment projects in the construction, energy renovation and modernization of medical establishments (> € 20 million) (cumulative)

 

Number

0

20

Q4

2024

Number of establishments for which the ARS (Regional Health Agency) has validated support investments project in the construction, energy renovation and modernization of medical establishments, for an amount exceeding EUR 20 000 000. Cumulative calculation.

9-9

C9.I2

Modernisation and restructuring of hospitals and health care supply

Target

Number of investment projects in the construction, energy renovation and modernization of medical establishments (> € 20 million)

 

Number

20

30

Q2

2026

Number of establishments for which the ARS (Regional Health Agency) has validated support investments project in the construction, energy renovation and modernization of medical establishments, for an amount exceeding EUR 20 000 000. Cumulative calculation.

9-10

C9.I2

Modernisation and restructuring of hospitals and health care supply  

Target

establishments supported in their investments in technical installations, equipment or light renovation

Number

1000

Q4

2025

Number of establishments to which the ARS (Regional Health Agency) has allocated credits investments in technical installations, equipment or light renovation. Cumulative calculation: number of different health care institutions that received these credits.

9-11

C9.I3

Renovation of medico-al and social establishments

Target

Number of nursing homes having benefited from assistance with equipment to improve reception conditions for the elderly ("daily investment") (cumulative)

Number

3000

Q4

2022

Number of homes for the dependent elderly that have received funding under the "daily investments" scheme

9-12

C9.I3

Renovation of medico-al and social establishments

Target

Accommodation solutions for the elderly who have benefited from aid for real estate investment

36 000

Q2

2026

Accommodation units built or renovated in EHPAD, or homes for the elderly or dependent persons.

9-13

C9.I4

National suicide prevention hotline

Milestone

Activation of the telephone line service to prevent suicide

Hotline activation

Q4

2022

Activation of the telephone line service to prevent suicide.

9-14

C9.I5

Very fast broadband plan (‘Plan France très haut débit’) 

Target

Additional housing and business premises that are eligible to be connected to fibre

Number

0

1,700,000 

Q1

2022

Number of additional (compared to 2020) housing and business premises that are eligible to be connected to fibre in 2021.

9-15

C9.I5

Very fast broadband plan (‘Plan France très haut débit’) 

Target

Additional housing and business premises that are eligible to be connected to fibre

Number

0

2,500,000 

Q4

2023

Number of additional (compared to 2022) housing and business premises that are eligible to be connected to fibre in 2023.

9-16

C9.I6

Digital inclusion 

Target

France Services digital advisers trained

Number

0

3600

Q4

2022

Number of France Services digital advisers trained under the training and recruitment campaign.

9-17

C9.I7

R&D recovery strategy - National Research Agency 

Target

Global success rate for generic and specific calls for projects 

Percentage

16

20

Q2

2022

Ratio between the number of projects selected by the National Research Agency and the number of projects submitted in the generic and specific calls. The ratio for calls for projects launched in year 2021 shall be measured in Q2 of year 2022.

9-18

C9.I8

PIA4 - Support to teaching, research, promotion and innovation ecosystems 

Milestone

All three calls for projects launched (“ExcellencES”, “Diversification of the resources of higher education and research institutions”, and “Transformation of school education by promoting innovation and new forms of organization and management”) 

Publication of the calls on the website

Q4

2021

All calls for projects launched under this measure, with terms of reference including as eligibility criterion to ensure the environmental neutrality of the applications of the funded solution.

9-19

C9.I8

PIA4 - Support to teaching, research, promotion and innovation ecosystems 

Milestone

Awards of contracts – implementing decision of the Prime Minister

Report from the Secrétariat Général pour l’Investissement’ (SGPI)

Q4

2023

Implementing decision of the Prime Minister following the close of the calls for proposals/calls for interest launched under milestone 9-18; allowing contractualisation with the beneficiaries through granting funds to be signed for all beneficiaries.

2.Estimated total cost of the recovery and resilience plan

The estimated total cost of the recovery and resilience plan of France is EUR 40 950 000 000.

   

SECTION 2: FINANCIAL SUPPORT

1.Financial contribution

1.1.First Instalment (non-repayable support):

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

1-1

C1.R1 Housing policy

Milestone

Reform of the APL (« « aides personnelles au logement »)

1-4

C1.I1 Energy renovation of private buildings

Target

Number of MPR validated

1-6

C1.I2 Energy renovation of social housing

Target

Number of dwellings within the category of social housing receiving a grant for renovation

1-8

C1.I3 Energy renovation of public buildings

Target

Number of renovation projects of public sites belonging to the State, for which the renovation works contract has been notified

2-4

C2.I1 Decarbonisation of industry

Target

Greenhouse gas emissions avoided

2-6

C2.I2 Urban densification: sustainable construction

Target

Number of municipalities benefiting from the aid

3-1

C3.R1 Mobility law

Milestone

Article 35.2 of Law No 2019-1428 of 24 December 2019 on mobility

3-2

C3.R1 Mobility law

Milestone

Article 172 of Law No 2019-1428 of 24 December 2019 on mobility

3-4

C3.R2 Green budget

Milestone

Green budget with the Financing law

3-5

C3.I1 Support to railway

Milestone

Conclusion of the funding agreements

3-15

C3.I2 Support for the purchase of clean vehicles

Target

Ecological bonuses

3-18

C3.I3 Daily mobility

Milestone

AFITF funding agreements

3-21

C3.I4 Acceleration of transport infrastructure works

Milestone

AFITF funding agreements

3-22

C3.I4 Acceleration of transport infrastructure works

Milestone

Signature by the ASP (l’Agence de Services et de Paiement) of the funding agreement for new charging stations

3-27

C3.I5 Greening of the State car fleet

Target

Number of electric and plug-in hybrid vehicles purchased by the French administration

3-29

C3.I6 Greening of harbours

Milestone

AFITF funding agreements

4-1

C4.R1: Reform of the Governance of the Programme d’investissements d’avenir (PIA)

Milestone

Revised governance of the Programme d’investissements d’avenir

4-2

C4.I1: Innovate for the green transition

Target

Number of ‘acceleration strategies’ validated

6-5

C6.I2 PIA – Key digital technologies

Target

Number of strategies validated

7-3

C7.R2 Organic law Experimentation

Milestone

Entry into force of the law aiming to enshrine the right to differentiation

7-6

C7.R4 Governance of public finances

Milestone

Submission of the CAFP report (Commission sur l’Avenir de Finances Publiques)

7-7

C7.R4 Governance of public finances

Milestone

Implementation of selected recommendations of the CAFP report

7-8

C7.R4 Governance of public finances

Milestone

Implementation of a COVID debt containment scheme in the draft budgetary plan

7-10

C7.R5 Assessment of the quality of public spending

Milestone

Publication of the results of the productivity reforms

7-11

C7.R5 Assessment of the quality of public spending

Milestone

Report of the audit mission of the Court of Auditors on public finances

7-35

Control and audit procedures in the implementation of the RRF

Milestone

Organisation of the system and the treatment of data and organisation of the audits

8-3

C8.R2 Reform of short-time work schemes

Milestone

Short-time work scheme reform to boost economic activity through a gradual restriction of the generosity and stricter access conditions to the schemes

8-4

C8.R3 Reform of health and security at work

Milestone

Adoption of amendments to the law aiming at providing France with a more effective system of “health at work” actors, focusing on prevention on the one hand, and on the other hand reorganising the governance and functioning of the institutions responsible for “health at work”

8-6

C8.R4 Reform of the unemployment insurance

Milestone

Entry into force of several measures of the reform of the unemployment scheme

8-10

C8.I3 Hiring subsidy for apprenticeship contracts

Target

Hiring subsidies paid for apprenticeship contracts

8-12

C8.I5 Hiring subsidy for youth under 26

Target

Hiring subsidies paid for contracts hiring youth under 26

8-15

C8.I8 « Roped together for success »

Target

Students participating in the « cordées de la réussite » programme

8-19

C8.I12 Plan for youth: higher education

Target

Places in higher education created

8-22

C8.I15 Support to employers for hiring of persons with disabilities (AMEETH)

Target

Subsidies paid

8-29

C8.I21 Increase in the resources of France Compétences

Milestone

Signature of the agreement with France Compétences

9-1

C9.R1 National Strategy for the Transformation of the Health System

Milestone

Vote and publication of the bill to improve the health system (simplification of the governance of hospitals).

9-3

C9.R2 Creation of a new branch of social security covering the risk of loss of autonomy

Milestone

Law for the creation of a new branch of social security dedicated to supporting the independence of the elderly and people with disabilities

9-18

C9.I8 PIA4 - Support to teaching, research, promotion and innovation ecosystems

Milestone

All three calls for projects launched (“ExcellencES”, “Diversification of the resources of higher education and research institutions”, and “Transformation of school education by promoting innovation and new forms of organization and management”)

Instalment Amount

EUR 8 505 747 126

1.2.Second Instalment (non-repayable support):

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

1-3

C1.R2 Revised thermal regulation RE2020

Milestone

Revision of the thermal regulation RE2020

1-5

C1.I1 Energy renovation of private buildings

Target

Number of MPR validated

1-7

C1.I2 Energy renovation of social housing

Target

Number of dwellings within the category of social housing receiving a grant for renovation

1-9

C1.I3 Energy renovation of public buildings

Target

Number of public buildings belonging to local and regional authorities (LRAs) which have been the subject of a subsidy notification from the State or the Regional Council for energy renovation works

2-1

C2.R1 Law Climate & Resilience

Milestone

Law Climate & Resilience

2-3

C2.R2 Law on circular economy

Milestone

Decrees implementing the anti-waste and circular economy Law

2-5

C2.I1 Decarbonisation of industry

Target

Greenhouse gas emissions avoided

2-7

C2.I3 Urban densification: brownfields

Target

Number of projects for which a grant has been signed for recycling operation of wasteland or of urbanized area

2-9

C2.I4 Biodiversity

Target

Number of projects supported in the fields of ecological restoration and protected areas

2-11

C2.I6 Secure water networks

Target

Number of linear km of drinking water networks and sanitation networks supported

2-12

C2.I7 Modernization of sorting centers

Target

Number of contracts signed for the modernization of sorting centers

2-13

C2.I7 Modernization of sorting centers

Milestone

Investment in waste sorting and collection, and in medical waste treatment

2-16

C2.I9 Plant protein plan

Target

Number of projects that shall receive fund from the “protein plan” in order to invest in protein plant production

3-6

C3.I1 Support to railway

Target

Switches

3-7

C3.I1 Support to railway

Target

Catenaries

3-8

C3.I1 Support to railway

Target

Regenerated railway lines

3-9

C3.I1 Support to railway

Target

Tunnels

3-10

C3.I1 Support to railway

Milestone

Environmental treatment of railways

3-16

C3.I2 Support for the purchase of clean vehicles

Target

Ecological bonuses

3-17

C3.I2 Support for the purchase of clean vehicles

Target

Ecological bonuses

3-30

C3.I6 Greening of harbours

Target

New electrical connections on docks

4-3

C4.I1: Innovate for the green transition

Milestone

Launch of calls for proposals or calls for interest

4-5

C4.I2: Develop decarbonised hydrogen

Milestone

Award of the contracts under the support mechanism

4-6

C4.I2: Develop decarbonised hydrogen

Target

Volume of hydrogen produced under the support mechanism

4-8

C4.I2: Develop decarbonised hydrogen

Milestone

Signature of decision to attribute financial support to private promoters under the IPCEI on hydrogen

4-10

C4.I3: Support plan to the aeronautics sector

Target

Number of projects selected for support under the investment support fund

4-11

C4.I3: Support plan to the aeronautics sector

Target

Number of R&D projects to promote low-carbon and energy efficient aircraft selected

5-1

C5.R1 Implementation of ASAP law

Milestone

Law n°2020-1525 (loi ASAP)

5-3

C5.I1 Regional investment funds

Milestone

Grant to regional investment funds

5-4

C5.I1 Regional investment funds

Target

Contribution to regional investment funds

6-2

C6.R1 Research Programming Law

Target

Loi n° 2020-1674 du 24 décembre 2020 – recruitments in tenure track

6-4

C6.I1 Preserving R&D employment

Target

Number of R&D personnel benefitting from the measure

6-8

C6.I3 PIA – innovative businesses

Milestone

Launch of the call for proposals or interest

6-10

C6.I4 Space

Target

Award of contracts to beneficiaries

6-11

C6.I4 Space

Target

Number of beneficiaries

7-1

C7.R1 4D Law

Milestone

Entry into force of the 4D law

7-5

C7.R3 Civil service transformation

Milestone

Implementation of actions identified as part of the projects launched on recruitment and equal opportunities

7-12

C7.R5 Assessment of the quality of public spending

Milestone

Exit emergency measures under sanitary conditions

7-13

C7.R5 Assessment of the quality of public spending

Milestone

Construction of financial laws articulated with public expenditure evaluations covering the scope of public administration in compliance with the expenditure trajectory of the public finance programming law

7-15

C7.I1 Digital upgrade of companies

Target

Number of companies that received a subsidy to foster digital investments

7-20

C7.I4 Digital upgrade of the State – digital ID

Target

Number of digital ID cards produced

7-26

C7.I9 Digital transformation of the school

Target

Number of school classes digitally equipped

7-32

C7.I11 Culture

Milestone

Investment in the “The Press Sector Plan”

7-33

C7.I11 Culture

Milestone

Investment in “The Book Sector Plan”

7-34

C7.I11 Culture

Milestone

Investment in the “The Cinema Sector Plan”

8-1

C8.R1 Reform of the provision of services by the unemployment agency

Target

Agencies having integrated Cap’Emploi services

8-2

C8.R1 Reform of the provision of services by the unemployment agency

Target

Agencies with a compensation counsellor

8-7

C8.R4 Reform of the unemployment insurance

Milestone

Automatic entry into force of the remaining measures once economic conditions improve

8-8

C8.I1 FNE-Training

Target

Participants in FNE-Formation training courses

8-11

C8.I4 Hiring subsidy for professionalisation contracts

Target

Hiring subsidies paid for professionalisation contracts

8-14

C8.I7 Boarding schools for excellence

Target

Places either built or renovated

8-16

C8.I9 State-backed guarantees for student loans

Target

Beneficiaries of State-guaranteed student loans

8-17

C8.I10 Personalised courses for NEET youth aged 16-18

Target

Youth entering the AFPA activities

8-18

C8.I11 Creation of places in higher education

Target

Places in higher education created

8-20

C8.I13 PACEA and Youth guarantee

Target

Additional beneficiaries of the PACEA and youth guarantees as of 2021

8-21

C8.I14 Aided contracts for youth (PEC and CIE)

Target

Additional aided contracts

8-26

C8.I18 Digital educational content: platforms for digital content

Milestone

Support for project management assistance to support the design and dissemination of digital content

8-27

C8.I19 Additional allocation for the “Pro transitions” associations (AT pro) for the financing of professional transitions

Target

Additional professional transitions financed

8-28

C9.I20 Top-up of individual learning accounts for digital skills

Target

Persons having used their topped-up ILA to sign up to a training for digital skills registered in the national repository of professional skills

8-31

C8.I22 Increase in the resources of Pôle Emploi

Target

Pôle Emploi counsellors recruited

9-11

C9.I3 Renovation of medico-al and social establishments

Target

Number of nursing homes having benefited from assistance with equipment to improve reception conditions for the elderly ("daily investment") (cumulative)

9-13

C9.I4 National suicide prevention hotline

Milestone

Activation of the telephone line service to prevent suicide

9-14

C9.I5 Very fast broadband plan (‘Plan France très haut débit’)

Target

Additional housing and business premises that are eligible to be connected to fibre

9-16

C9.I6 Digital inclusion

Target

France Services digital advisers trained

9-17

C9.I7 R&D recovery

Target

Global success rate for generic and specific calls for projects

Instalment Amount

EUR 14 597 701 149

1.3.Third Instalment (non-repayable support):

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

1-2

C1.R1 Housing policy

Milestone

Reform of the Pinel / PTZ schemes

1-10

C1.I3 Energy renovation of public buildings

Target

Number of m² of floors of public sites belonging to the State where the energy renovation works have been completed

1-13

C1.I4 Energy renovation of VSEs and SMEs

Target

Number of companies benefitting from the tax credit and the support schemes

2-8

C2.I3 Urban densification: brownfield

Target

Number of projects for which a grant has been signed for recycling operation of wasteland or of urbanized area

2-10

C2.I5 Prevention of seismic risks in the DOM

Target

Number of buildings concerned – seismic risks in the DOM

2-17

C2.I10 Forests

Target

Surface area of forests for which a grant has been committed in order to improve, adapt, regenerate or reconstitute the forest

3-3

C3.R1 Mobility law

Milestone

Article 3 of Law No 2019-1428 of 24 December 2019

3-11

C3.I1 Support to railway

Target

Local railways lines

3-12

C3.I1 Support to railway

Target

Renovated freight lines

3-23

C3.I4 Acceleration of transport infrastructure works

Target

Charging stations

3-24

C3.I4 Acceleration of transport infrastructure works

Target

Kilometres of reserved lanes completed

3-26

C3.I4 Acceleration of transport infrastructure works

Milestone

Modernisation of the CROSS network and numerical system for the maritime affairs

3-28

C3.I5 Greening of the State car fleet

Target

Number of electric and plug-in hybrid vehicles purchased by the French administration

3-31

C3.I6 Greening of harbours

Milestone

Purchase of vessels

3-32

C3.I7 Strengthening the resilience of electricity grids

Milestone

Beginning of projects

4-4

C4.I1: Innovate for the green transition

Milestone

Award of the contracts – implementing decision of the Prime Minister

5-2

C5.R2

Enterprises’ contributions to economic, social and environmental transformations

Milestone

Article 244 of Law n° 2020-1721 (loi de finances 2021)

6-1

C6.R1 Research Programming Law

Target

Loi n° 2020-1674 du 24 décembre 2020 – entry into force of decrees

6-6

C6.I2 PIA – Key digital technologies

Milestone

Launch of the call for proposals or interest

7-9

C7.R4 Governance of public finances

Milestone

New Public Finances Programming Law (LPFP, ‘Loi de Programmation des Finances Publiques’)

7-17

C7.I2 Digital upgrade of the State and local authorities

Target

Number of companies benefitting from public orders

7-18

C7.I2 Digital upgrade of the State and local authorities

Target

Percentage of civil servants equipped for teleworking

7-21

C7.I4 Digital upgrade of the State – digital ID

Target

Number of citizens using the digital ID application

7-22

C7.I5 Equipment of Ministry of Interior

Milestone

Investment to reinforce the digital equipment of the Ministry of Interior

7-24

C7.I7 Teleworking in the Ministry of Interior

Milestone

Investment to reinforce the digital connectivity of the Ministry of Interior

8-9

C8.I2 Reskilling through dual training programmes (Pro A)

Target

Employees benefitting from the Pro-A programme

8-13

C8.I6 Creation of jobs for youth in the sports sector

Target

Jobs created in the sports sector which benefit from a subsidy

8-23

C8.I16 Extension of the “accompanied employment” plan

Milestone

Full deployment of the extension of the “accompanied employment” plan

8-24

C8.I17 Distance training courses

Target

Entries into distance training courses

8-25

C8.I18: Digital educational content: platforms for digital content

Target

Training bodies declaring having trained participants either in part or fully through distance learning

8-30

C8.I21 Increase in the resources of France Compétences

Target

Additional apprenticeship contracts signed

9-2

C9.R1 National Strategy for the Transformation of the Health System

Target

Credit commitment rate for the upgrading of human resources in health

9-7

C9.I2 Modernisation and restructuring of hospitals and health care supply

Target

Establishments supported in their investments in technical installations, equipment or light renovation

9-15

C9.I5 Very fast broadband plan (‘Plan France très haut débit’)

Target

Additional housing and business premises that are eligible to be connected to fibre

9-19

C9.I8 PIA4 - Support to teaching, research, promotion and innovation ecosystems

Milestone

Awards of contracts - implementing decision of the Prime Minister

Instalment Amount

EUR 7 931 034 483

1.4.Fourth Instalment (non-repayable support):

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

1-11

C1.I3 Energy renovation of public buildings

Target

Number of m² of floors of public sites belonging to the State where the energy renovation works have been completed

1-12

C1.I3 Thermal renovation of public buildings

Target

Number of schools, colleges or high schools where the energy renovation works have been completed

3-19

C3.I3 Daily mobility

Target

Public transport reserved lanes

3-25

C3.I4 Acceleration of transport infrastructure works

Target

Projects realised on waterways

6-7

C6.I2 PIA - Key digital technologies

Milestone

Awards of contracts – implementing decision of the Prime Minister

6-9

C6.I3 PIA – innovative businesses

Milestone

Awards of contracts – implementing decision of the Prime Minister

6-12

C6.I4 Space

Milestone

Investments in Ariane 6

7-14

C7.R5 Assessment of the quality of public spending

Milestone

Annual assessment of measures taken to improve the quality of public spending implemented in the 2023 budgetary law

7-16

C7.I1 Digital upgrade of companies

Target

Number of digital solutions provided to companies

7-19

C7.I3 Cybersecurity of central government

Milestone

Investment to increase governmental cybersecurity

7-27

C7.I10 Digital access to higher education

Target

Number of students having access to digital training

7-30

C7.I11 Culture

Target

Number of renovated art and architecture schools

7-31

C7.I11 Culture

Milestone

Schemes to support art creation

9-4

C9.I1 Catching up on technical standards for digital health

Target

State digital infrastructure in the field of health

9-5

C9.I1 Catching up on technical standards for digital health

Target

Finalisation of interoperability and security of installed fleet software and support and incentivise healthcare

9-6

C9.I1 Catching up on technical standards for digital health

Target

Digital catch-up of the social medicine

9-8

C9.I2 Modernisation and restructuring of hospitals and health care supply

Target

Number of investment projects in the construction, energy renovation and modernization of medical establishments (> € 20 million) (cumulative)

Instalment Amount

EUR 3 793 103 448

1.5.Fifth Instalment (non-repayable support):

Sequential Number

Related Measure (Reform or Investment)

Milestone / Target

Name

2-2

C2.R1 Law Climate & Resilience

Milestone

Law Climate & Resilience – Implementing Act

2-14

C2.I7 Modernisation of sorting centers

Target

Number of sorting centers modernised

2-15

C2.I8 Recycling and reuse

Target

Quantity of plastic materials avoided

3-13

C3.I1 Support to railway

Target

Local railways lines

3-14

C3.I1 Support to railway

Target

Renovated freight lines

3-20

C3.I3 Daily mobility

Target

Public transport reserved lanes

4-7

C4.I2: Develop decarbonised hydrogen

Target

Volume of hydrogen produced under the support mechanism

4-9

C4.I2: Develop decarbonised hydrogen

Target

Electrolyser production capacity

4-12

C4.I3: Support plan to the aeronautics sector

Target

Number of projects completed, under the investment support fund

6-3

C6.R1 Research Programming Law

Target

Loi n° 2020-1674 du 24 décembre 2020- increase in public research funding

7-2

C7.R1 4D Law

Milestone

Evaluation of the 4D law

7-4

C7.R2 Organic law Experimentation

Milestone

State of play of the first experiments carried out

7-23

C7.I6 Applications of the Ministry of Interior

Milestone

Investment in digital applications developed by the Ministry of Interior

7-25

C7.I8 Digital upgrade of the education system

Milestone

Investment to upgrade the digital services of the Ministry of National Education

7-28

C7.I11 Culture

Target

Cathedrals and national historical monuments

7-29

C7.I11 Culture

Milestone

Monuments belonging to local authorities and private owners

8-5

C8.R3 Reform of health and security at work

Target

Services for health and security at work equipped with secure digital tools

9-9

C9.I2 Modernisation and restructuring of hospitals and health care supply

Target

Number of investment projects in the construction, energy renovation and modernisation of medical establishments (> € 20 million)

9-10

C9.I2 Modernisation and restructuring of hospitals and health care supply

Target

Establishments supported in their investments in technical installations, equipment or light renovation

9-12

C9.I3 Renovation of medico-al and social establishments

Target

Accommodation solutions for the elderly who have benefited from aid for real estate investment

Instalment Amount

EUR 4 540 732 267

 

SECTION 3: ADDITIONAL ARRANGEMENTS

1.Arrangements for monitoring and implementation of the recovery and resilience plan

The implementation of the French recovery and resilience plan is administratively led by the Ministry of Economy, Finances and Recovery, in close cooperation with the General Secretariat of European Affairs (SGAE), attached to the Prime Minister. The SGAE is coordinating central administrations involved in the plan, and is supported in the implementation and monitoring process by the “Recovery Secretariat” in charge of the “France Relance” plan” (of which the investments of the French recovery and resilience plan constitute a sub part). The Recovery Secretariat is directly attached to the Prime Minister and the Minister of Economy, Finance and Recovery. The Recovery Secretariat is monitoring the implementation of the plan at the level of each measure, in close cooperation with regional prefects and Heads of each Ministry.

The implementation of the reforms shall be more closely monitored by each relevant Ministry. Attached to each Minister, an advisor is specifically responsible for monitoring, implementing and reporting on the reforms included in the recovery and resilience plan. The inter-ministerial coordination is ensured by the SGAE who shall be in charge of collecting, together with the Ministry of Economy, Finance and Recovery, the supporting documents demonstrating the completion of the milestones of the reforms planned under the recovery and resilience plan.

The controls on the milestones and targets are delegated to the Ministries in charge of the implementation of the components through the “convention de délégation de gestion”. This delegation of responsibility implies that each ministry sets out within its scope the internal control system defined by the Ministry of the Economy, Finance and Recovery. Verification, inspection and audit missions shall be organised to ensure the effectiveness of these systems and to control the quality of the data transmitted. The “conventions de délégation de gestion” detail the budget allocation, while the management and verifications to be carried out by the line ministries shall be featured in the “chartes de gestion”, still under development.

2.Arrangements for providing full access by the Commission to the underlying data

The completion of the targets and milestones related to investments shall be subject to regular and centralised monitoring by the Recovery Secretariat, on the basis of information collected and reported by the public administrations concerned. Data on indicators attached to milestones and targets shall be provided in a dedicated IT collection tool (Propilot), set up by the Recovery Secretariat. These data shall be collected at local level and centralized at national level, and shall be used to report on the achievement of milestones and targets under the recovery and resilience plan. The Recovery Secretariat shall extract them from the IT tool “Propilot” and send them to the Budget Directorate of the Ministry of Economy, Finances and Recovery at regular intervals in order to finalise payment requests to be sent to the European Commission.

In accordance with Article 24(2) of Regulation (EU) 2021/241, upon completion of the relevant agreed milestones and targets in Section 2.1 of this Annex, France shall submit to the Commission a duly justified request for payment of the financial contribution. France shall ensure that, upon request, the Commission has full access to the underlying relevant data that supports the due justification of the request for payment, both for the assessment of the request for payment in accordance with Article 24(3) of Regulation (EU) 2021/241 and for audit and control purposes.

(1) ELAN Law stands for « loi pour l'évolution du logement, de l'aménagement et du numérique ».
(2) APL: aides personnelles au logements, i.e. housing benefit for low-income households; Pinel scheme: income tax reduction for rental investments; PTZ: prêt à taux zero, i.e. zero rate loan.
(3) BBC stands for “Bâtiment Basse Consommation”, i.e. with a maximum primary energy consumption of 50 kWh per m2.
(4) Éco-PLS : éco-prêt logement social (implemented in 2009, this scheme has been revised in 2019 and provides advantageous loans to social landlords to renovate their building stock). CEE (certificats d’économies d’énergie): the scheme was created in 2005, and imposes energy savings obligations to energy providers through certificates.
(5)  Decree No. 2019-771 of July 23, 2019 related to obligations to reduce final energy consumption in buildings for tertiary use
(6) E.g. municipalities, grouping of municipalities and other local authorities such as « départements ».
(7)  The list of eligible measures shall be specified in a decree.
(8) 18 cities are concerned, representing around 7 million inhabitants (more at the scale of the catchment basins).
(9) Cf. https://www.certificat-air.gouv.fr/docs/tableaux_classement.pdf  
(10)

Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities and installations falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.

(11) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 OJ L 198, 22.6.2020, p. 13–43
(12) Regulation (EU) 691/2011 of the European Parliament and of the Council of 6 July 2011 on European environmental economic accounts, Article 2
(13)

‘Autorités organisatrices de la distribution publique d’électricité’ (AODE) pursuant to Article L.322-6 of the energy code.

(14)

Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

(15)

Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.

(16)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(17)

This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(18)

IPCEIs are subject to the notification requirement and stand-still obligation in Article 108(3) of the Treaty on the Functioning of the European Union. The selection and specificities of the proposed projects may require adjustments to ensure compliance with the applicable State aid rules.

(19) Loi n°2020-1525 du 7 décembre 2020.
(20)   France relance : découvrez les priorités du plan | Gouvernement.fr .
(21) It covers “scope 1” within the meaning of ISO 14064-1.
(22) See, e.g. : https://travail-emploi.gouv.fr/droit-du-travail/egalite-professionnelle-discrimination-et-harcelement/indexegapro .
(23)  See, e.g.: https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000037385809/ .
(24)  Loi n° 2020-1674 du 24 décembre 2020.
(25)

EdTech — usually referred to as EdTech for “educational technology” — brings together technological resources and digital solutions for knowledge, for transmission, learning and application.

(26)

Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

(27)

Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.

(28)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(29)

This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(30)  See e.g. https://www.insee.fr/fr/metadonnees/definition/c2034 .
(31)

Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

(32)

Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.

(33)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(34)

This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(35)

Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

(36)

Where the activity supported achieves projected greenhouse gas emissions that are not significantly lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.

(37)

This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

(38)

This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

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