NextGenerationEU is proving its strong track record as implementation draws to a close

The European Commission presents the fifth annual report on the Recovery and Resilience Facility (RRF). As the EU’s flagship recovery instrument under NextGenerationEU, the RRM has already disbursed €450,000 million in grants and loans, representing almost 80 per cent of the total amount requested by Member States.

Established in 2021 as an immediate response to the COVID-19 crisis, the RRM has become a key driver of reform and investment, whilst strengthening the Union’s economic resilience. From boosting research and development in Ireland to supporting family businesses in Greece and modern healthcare facilities in Cyprus, the MRR has a strong track record of delivering tangible change.

Member States had until 31 August 2026 to complete the milestones and targets reflecting the reforms and investments set out in their Recovery and Resilience Plans. The Commission is currently assessing the 32 final payment requests, with the remaining disbursements – totalling €123 billion (21 per cent of the allocation) – due to be completed by the end of 2026.

Throughout the programme’s duration, Member States have worked to achieve nearly 6,000 milestones and targets, carrying out reforms and investments that support the green and digital transitions and benefit citizens and businesses on the ground. Of these, 4,082 milestones and targets have already been met, whilst 1,899 are currently under assessment.

Driving Europe’s digital transformation:

Digital investments supported by the MRR, totalling €140,000 million, are driving the digital transformation, with great potential to boost productivity. It is estimated that every euro invested in digital measures under the MRR could generate 1.5 euros of economic output within the EU by 2030. Funding is particularly focused on high-tech sectors, which are a key driver of Europe’s competitiveness.

Examples include Austria’s expansion of its high-capacity broadband network, support for microelectronics in Germany, and the digitisation of judicial systems in Bulgaria, Malta, the Netherlands and Portugal. The Facility has also supported electronic payments in Greece to reduce the administrative burden on businesses and improve compliance with tax obligations; Italy’s ‘single customs window’ to better coordinate customs procedures; and Estonia’s reform to develop ten digitalised services relating to life events for citizens, such as military service, a change of name or divorce.

Digital skills also receive significant support from the MRR. For example, Latvia introduced training modules to increase the number of specialists with advanced digital skills, whilst Finland improved the general public’s basic cybersecurity skills.

Supporting the green transition:

The MRR is also making a concrete contribution to the Union’s 2030 climate targets, with €287,000 million earmarked for the green transition. It is estimated that the subsidised investments will reduce annual greenhouse gas emissions by 1.5 per cent of the EU’s emissions (using 2021 as a baseline). Furthermore, the reforms supported by the MRR could lead to an additional reduction equivalent to 1.4 per cent of the EU’s annual emissions.

MRR support has, for example, helped the Czech Republic to roll out low-emission heating systems and renewable energy technologies, including photovoltaic and solar thermal installations. These measures are expected to save at least 500,000 tonnes of CO₂ equivalent each year. In the case of Poland, the support has enabled regulatory changes to be introduced to promote renewable energy generation and a commitment to increase the capacity of wind farms and photovoltaic installations. It is estimated that this second measure alone will result in an annual reduction in greenhouse gas emissions equivalent to around 4 per cent of Poland’s emissions recorded in 2021.

Reforms that transform economies:

The MRR has also supported the implementation of major reforms across all Member States, the full impact of which will become increasingly apparent over time.

For example, Italy has launched a wide-ranging reform of its judicial system covering civil, criminal, insolvency and administrative justice. Initial findings also show that reforms driving the digitalisation of public administrations are helping to reduce red tape and speed up procedures – for example, in Germany through electronic identification and in Cyprus through the fast-track processing of value added tax (VAT).

Furthermore, labour market reforms supported by the MRR are showing encouraging signs in Greece, France, Spain and Portugal. For example, in Spain, it is estimated that the labour market reform supported by the MRR has helped to reduce temporary employment and increase overall employment by 3 per cent in 2023.

Background:

This is the fifth annual report on the implementation of the MRR, published in accordance with the requirements of Article 31 of the MRR Regulation.

The cut-off date for the data and information included in this report is 31 August 2026, except in the case of data relating to payment requests and disbursements, for which the cut-off date is 2 October 2026. Progress in the implementation of recovery and resilience plans can be tracked via the recovery and resilience scoreboard. Further information is available online, including the list of the 100 largest recipients of MRR funds, data on the impact of the MRR and an interactive map of projects funded by the MRR.

Citation(s):

“NextGenerationEU has given Member States a boost, making Europe stronger and more competitive. From the digitalisation of public administrations and judicial systems to cutting red tape, improving efficiency and strengthening our energy security, it has driven reforms and investments that are modernising our economies and creating new opportunities for citizens and businesses. Europe responded to an unprecedented crisis with an unprecedented joint effort. We are now building on these results, completing the work and ensuring that this investment leaves Europe stronger and better prepared for the future.” – Raffaele Fitto, Executive Vice-President for Cohesion and Reforms

“The Recovery and Resilience Facility has turned European ambition into concrete results. €450,000 million has already been disbursed to Member States to support investment, drive reforms and make a real difference on the ground for citizens and businesses across Europe. I have seen this first-hand whilst travelling across our Union: investment, coupled with reforms, strengthens our economies and improves people’s lives. We will now focus on assessing the final payment claims and bringing the Mechanism to a successful conclusion.” – Valdis Dombrovskis, Commissioner for Economy and Productivity, Implementation and Simplification

 

More information:European Commission