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(1) In accordance with Articles 120 and 121 of the Treaty on the Functioning of the European Union (TFEU), Member States are required to conduct their economic policies with a view to contributing to the achievement of the objectives of the Union and in the context of the broad guidelines that the Council formulates. Article 148 TFEU requires Member States to implement employment policies that take into account guidelines for employment drawn up by the Council. The coordination of Member States’ economic policies is therefore a matter of common concern.

(2) Article 175 TFEU requires, inter alia, Member States to coordinate their economic policies in such a way as to attain the objectives on economic, social and territorial cohesion set out in Article 174 thereof.

(3) The COVID-19 outbreak in early 2020 changed the economic and social outlook for the years to come in the Union and in the world. In the Union, new priorities have emerged, linked with the crisis, specifically focussing on recovery and resilience. Those priorities require an urgent and coordinated response from the Union in order to cope with the economic, social and health-related consequences for Member States as well as to mitigate the social and economic fallout. In particular, women have been hit especially hard by the economic consequences of the COVID-19 crisis. The COVID-19 crisis, as well as the previous economic and financial crisis, has shown that developing sound and resilient economies and financial systems built on strong and sustainable economic and social structures helps Member States to respond more efficiently to shocks and to recover more swiftly from them. The need for preparedness of health systems, essential public services and effective social protection mechanisms was also clearly demonstrated. Growth-enhancing, sustainable, smart and socially responsible reforms and investments, sound fiscal policies and the creation of high-quality jobs to respond to the new challenges, address structural economic weaknesses and strengthen economic resilience will therefore be essential to setting the economy and society back on a sustainable recovery path and to overcoming the economic, social and territorial divergences in the Union. This should be done in the interest of the well-being of Union citizens and in accordance with relevant fundamental rights principles.

(4) Regulation (EU) 2017/825 of the European Parliament and of the Council established the Structural Reform Support Programme for the period 2017 to 2020, with a budget of EUR 142 800 000 at the moment of adoption. The Structural Reform Support Programme was established to strengthen the capacity of Member States to prepare and implement growth-sustaining administrative and structural reforms, including through assistance for the efficient and effective use of the Union funds. Technical support under the Structural Reform Support Programme is provided by the Commission, upon request from a Member State, and can cover a wide range of policy areas. This Regulation is designed as a continuation of that programme, which has been positively received by Member States, while incorporating relevant adjustments.

(5) Member States have increasingly taken up technical support under the Structural Reform Support Programme. Therefore, this Regulation should establish a technical support instrument with a view to continuing and enhancing support for Member States in the implementation of reforms (the ‘instrument’).

(7) Reflecting the European Green Deal as the Union’s growth strategy and the translation of the Union’s commitments to implement the Paris Agreement on climate change and the United Nations’ Sustainable Development Goals, the instrument will contribute to the implementation of the European Green Deal, the mainstreaming of climate actions and the achievement of the overall target of 30 % of Union budget expenditure supporting climate objectives and the ambition of providing 7,5 % of annual spending under the Multiannual Financial Framework to biodiversity objectives from 2024 and 10 % in 2026 and 2027, while considering the existing overlaps between climate and biodiversity objectives. Relevant actions should be identified during the instrument’s preparation and implementation and reassessed in the context of the relevant evaluations and review processes. The instrument should also tackle broader environmental and social challenges within the Union, including the protection of natural capital, preserving biodiversity and the support to the circular economy and the energy transition, in accordance with the 2030 Agenda for Sustainable Development. The instrument should also support the digital transition and contribute to the creation of the Digital Single Market.

(8) The general objective of the instrument should be to promote the Union’s economic, social and territorial cohesion by supporting Member States efforts to implement reforms. This is necessary to encourage public and private investments, support sustainable and fair economic and social recovery and convergence, achieve resilience, reduce poverty and inequality, promote gender equality, increase competitiveness, effectively address the challenges identified in the adopted country-specific recommendations and implement Union law. This is also necessary to support Member States’ efforts to strengthen their institutional and administrative capacity and judicial framework, including at regional and local level, and their efforts to implement policy objectives to facilitate socially inclusive, green and digital transitions, in accordance with the Paris Agreement on climate change, the Union’s 2030 climate and energy targets and climate neutrality by 2050 target, the United Nations Sustainable Development Goals and the European Pillar of Social Rights.

(11) This Regulation lays down a financial envelope for the instrument, which is to constitute the prime reference amount, within the meaning of the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources , for the European Parliament and for the Council during the annual budgetary procedure. The annual appropriations should be authorised by the European Parliament and by the Council in the framework of the annual budgetary procedure, within the limits of the Multiannual Financial Framework and taking into account demand for the instrument.

(12) In order to cater for additional needs under the instrument, Member States should have the possibility to transfer to the budget of the instrument resources programmed in shared management under Union funds and transfer back uncommitted resources, in accordance with a Regulation laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument. Transferred resources should be implemented in accordance with the rules of the instrument and should be used exclusively for the benefit of the Member State concerned. The Commission should provide feedback to that Member State on the use of the transferred resources.

(13) In order to cater for additional needs under the instrument, a Member State should be able to request additional technical support and should pay for the expenses pertaining to such additional support. Such payments should constitute external assigned revenue in accordance with the Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (the ‘Financial Regulation’) and should be used exclusively for the benefit of that Member State.

(14) Technical support should be provided on request, in order to support the implementation of reforms undertaken at the initiative of Member States, reforms in the context of economic governance processes, in particular those effectively addressing the country-specific recommendations or actions related to the implementation of Union law, and reforms in relation to the implementation of economic adjustment programmes. The instrument should also provide technical support for the preparation, amendment, implementation and revision of recovery and resilience plans pursuant to Regulation (EU) 2021/241.

(15) In line with the rules and practice already existing under the Structural Reform Support Programme, a light process for the submission of requests for technical support should be established. For that reason, requests by Member States should be submitted by 31 October unless otherwise specified in the additional dedicated calls for requests. Respecting the overarching principle of equal treatment, sound financial management and transparency, appropriate criteria for the analysis of the requests submitted by Member States should be laid down. Those criteria should be based on the urgency, severity and extent of the problems, as well as on the support needs identified in respect of the policy areas where technical support is envisaged. The Commission should organise additional dedicated calls in response to specific emerging needs of Member States, including, as a matter of priority, for the preparation, amendment, implementation and revision of recovery and resilience plans pursuant to Regulation (EU) 2021/241.

(16) Member States should be able, before requesting technical support, to consult, where appropriate, relevant stakeholders, such as local and regional authorities, social partners and civil society in accordance with national law and practices.

(17) The content of the cooperation and support plans detailing the measures for the provision of technical support to Members States should also be specified. To that end, the technical support measures envisaged and the related estimated global financial contribution should take into account the actions and activities financed by Union funds or Union programmes.

(18) For the purposes of accountability and transparency, and to ensure visibility of the Union action, subject to certain conditions that protect sensitive information, the Commission should transmit the cooperation and support plans simultaneously to the European Parliament and to the Council. The Commission should be able to engage in communication activities. The Commission should publish on its website a list of approved requests for technical support.