Next Generation EU drives sustainable growth across the EU

As the Recovery and Resilience Facility (RRF) approaches its 2026 deadline, it continues to drive positive reforms and investments across the EU. As a cornerstone of NextGenerationEU, the RRF has already disbursed €367 billion across Member States, contributing to key objectives such as economic and social resilience, and the green and digital transitions. Today, the Commission presents its fourth annual report, underscoring the Facility’s progress and calling for action to maximize its benefits.

Building a resilient future

The report published today shows that the RRF has enhanced public investment – expected to rise to 3.8% of GDP in 2025, up from 3.2% in 2019 – for instance by supporting the decarbonisation and digitalisation of industrial production and services, or deploying over 900,000 clean vehicle recharging stations and connecting 16 million households to high-speed internet.

The Facility has also supported a wide range of structural reforms, also aimed at boosting long-term growth and economic and social resilience. They include speeding up planning and permitting, digitalising public services, addressing labour market vulnerabilities or enhancing quality of education across Member States.

The combination of reforms and investments has helped to maximise their impact and has led to improvements in public services and the business environment, as well as the quality of life for citizens in areas such as healthcare, education or infrastructure.

A win for all EU Member States

In addition to its positive impact on production and employment in each Member State, the RRF generates strong spillover effects across borders. When demand rises in one Member State, it fuels demand for imports from other Member States, supporting growth and employment throughout the EU. All Member States benefit, and for some, the overall economic impact is more than double the size of their national RRF envelope thanks to these cross-border spillovers. This reflects the deep economic integration within the EU.

Protecting EU financial interests

Protecting the financial interests of the Union remains central in the RRF implementation. The Commission continued to constructively engage with the European Court of Auditors (ECA) over the last year, swiftly acting on its recommendations. While conducting its own audits, the Commission supported the ECA’s scrutiny on all grant payments and several RRF-related performance audits. Drawing on its audit findings, the Commission has strengthened audits and reinforced controls to ensure transparency and accountability.

Accelerated implementation remains a priority

The pace of implementation differs among Member States. With the RRF coming to an end in 2026 (a total financial envelope of €650 billion), the Commission urges them to accelerate the implementation of their Recovery and Resilience Plans (RRPs). Member States must meet all milestones and targets by 31 August 2026, with the Commission making the final payments by 31 December 2026. In its June Communication NextGenerationEU – The Road to 2026, the Commission provided guidance to support Member States in planning ahead for the submission of the last payment requests in 2026, emphasising the importance of streamlining and simplifying RRPs. By ensuring that the measures in the plans are clear and implementable, Member States can deliver on the agreed objectives without compromising on the plans’ ambition. In this context, the Commission is currently reviewing a number of payment requests and revised RRPs submitted by several Member States.

Background

This report is the fourth in a series of annual publications on the implementation of the RRF, in line with the requirements of Article 31 of the RRF Regulation.

The cut-off date for all data and information included in this report is 31 August 2025, unless otherwise specified. Progress in the implementation of recovery and resilience plans can be followed on the Recovery and Resilience Scoreboard. You can explore the list of the 100 largest RRF funds recipients online. More general information on the RRF, including an interactive map of projects financed by the RRF can be equally found online.

More information: European Commission