Aktualisiert: 29. Juli 2022
You have certainly heard of the EU Recovery Plan and a total of €800 billion. The objective is clear – to boost the EU economy recovery after the pandemic. But what is this sum composed of and how is it distributed?
Well, to start with, it is actually part of an even bigger number. A long-term EU budget 2021-2027 of €2 trillion was agreed in December 2020. This is the total of
- A “normal” multiannual financial framework (MFF) of €1,2 trillion and
- The NextGenerationEU budget of beforementioned €800 billion, an exceptional temporary boost for the recovery
Both budget parts are allocated as follows
Let’s concentrate now on the NextGenerationEU. As seen in the image, more than 90% of it are dedicated to the Recovery and Resilience Facility (RFF): supporting reforms and investments undertaken by EU countries.
The aim is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the twin transitions, climate neutrality and digital transition.
By the way, the RFF is roughly divided into 53% grants and 47% loans.
The RRF entered into force on 19 February 2021. It finances reforms and investments in Member States from the start of the pandemic in February 2020 until 31 December 2026.
To benefit from the support of the Facility, Member States submit their recovery and resilience plans to the European Commission. Each plan sets out the reforms and investments to be implemented by end-2026.
These plans should effectively address challenges identified in the European Semester, particularly the country-specific recommendations of 2019 and 2020 adopted by the Council. It should also advance the green and digital transitions and make Member States’ economies and societies more resilient.
How is the RFF divided up between countries?
On 30 June 2022 an update on the allocated grants per country was published. Main receivers are
- Spain: €77 billion = 23%
- Italy: €69 billion = 20%
- France: €37 billion = 11%
- Germany: €28 billion = 8%
- Poland: €23 billion = 7%
It came into my mind occasionally during past months, I had heard about the total of €800 billion. But now what? Is the money getting spent? Well, I found it. You can follow the process when countries are submitting their plans, getting approvals and receiving payments. It is ongoing and you can monitor the progress here. Also the milestones per country and target achievements per country are monitored and you can find them here.