COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Strengthening the EU through ambitious reforms and investments
Date: 2024-02-21
Institutions: European Commission, Secretariat-General
Subjects: EU Member State, EU energy policy, EU financial instrument, EU financing arrangements, economic recovery, economic reform, innovation, investment, reduction of gas emissions, structural adjustment

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 21.2.2024  COM(2024) 82 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Strengthening the EU through ambitious reforms and investments {SWD(2024) 70 final}  
 
 
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Strengthening the EU through ambitious reforms and investments 

This Communication marks the half-way point of the Recovery and Resilience Facility 
(RRF).  Designed  as  a  response  to  the  economic  and  social  fall-out  from  the  COVID-19 
pandemic and established in February 2021, the RRF is the centrepiece of NextGenerationEU 
(NGEU), the EU’s recovery instrument. Set to last until end 2026, the RRF is unprecedented 
both in scale and ambition. It has the two-fold objective of helping Member States recover and 
emerge stronger from the devastating economic and social effects of the pandemic as well as 
boosting  the  EU’s  resilience  and  making  our  economies  and  societies  fit  for  the  future, 
especially  by  supporting  the  green  and  digital  transitions.  The  RRF  is  the  EU’s  first  major 
performance-based  funding  programme,  disbursing  funds  to  Member  States  against  the 
progress made towards the ambitious reforms and investments put forward in their national 
Recovery and Resilience Plans (RRP). These reforms and investments must be in line with the 
EU priorities identified in the RRF Regulation and address the national challenges identified 
in the European Semester for economic and employment policy coordination through country-
specific recommendations (CSRs).  

In the three years since the entry into force of the RRF Regulation, Member States have 
used the RRF strategically to advance their reform and investment agendas and tackle 
both long-standing and new challenges. EUR 225 billion have already been disbursed and 
around  75%  of  the  milestones  and  targets  planned  to  be  achieved  by  end  2023  either  have 
already been assessed by the Commission as satisfactorily fulfilled or are reported as completed 
by Member States.  Furthermore, through their RRPs, Member States have made significant 
progress in addressing the CSRs issued in the context of the European Semester. 

The RRF effectively supports the economic recovery in the EU. Around half of the increase 
in public investment expected in the EU between 2019 and 2025 is estimated to result from 
investments  financed  by  the  EU  budget,  particularly  by  the  RRF1.  Commission  modelling2 
suggests that NGEU3 has the potential to increase EU real GDP by up to 1.4% in 2026 above a 
no-NGEU scenario. The model simulations also suggest a sizeable, short-run increase in EU 
employment (by up to 0.8%). This is projected to be accompanied by persistently higher real 
wages in the medium term, reflecting potential productivity gains from investments carried out 

1   See European Economic Forecast – Autumn 2023, available at: https://economy-finance.ec.europa.eu/economic-forecast-
and-surveys/economic-forecasts/autumn-2023-economic-forecast-modest-recovery-ahead-after-challenging-year_en. 
The RRF and Cohesion Policy funds together are the main source of financing for investment under the EU budget. 
2   QUEST is the global macroeconomic model that the Directorate General for Economic and Financial Affairs (DG ECFIN) 
uses for macroeconomic policy analysis and research, see https://economy-finance.ec.europa.eu/economic-research-and-
the  Staff  Working 
databases/economic-research/macroeconomic-models/quest-macroeconomic-model_en.  See 
Document on the RRF Mid-term evaluation for further information on QUEST’s results regarding the macroeconomic 
impacts of the RRF. 

3   NGEU has a total budget of EUR 806.9 billion (2021 prices), of which EUR 723.8 billion is dedicated to the RRF (grants 
and loans). Other beneficiaries of NGEU are REACT-EU, which topped up 2014-2020 Cohesion policy programmes with 
EUR 50.6 billion, the Just Transition Fund (EUR 10.9 billion), Rural development (EUR 8.1 billion), InvestEU (EUR 6.1 
billion), Horizon Europe (EUR 5.4 billion) and rescEU (EUR 2 billion).  

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by Member States. Between a quarter and a third of the total estimated GDP impact of the RRF 
is projected to be due to positive spillovers between Member States, which are generated by 
the simultaneous implementation of investments across Member States. 

The  RRF  has  proven  to  be  an  agile  instrument,  helping  Member  States  face  new 
challenges  and  circumstances.  Russia’s  unprovoked  aggression  against  Ukraine  caused 
unimaginable  hardship  in  Ukraine  and  led  to  global  energy  market  and  supply  chain 
disruptions. Soaring prices, unseen in decades, of energy and consumer goods caused a ‘cost 
of living’ crisis for many households across Europe, hitting vulnerable ones the hardest. In this 
context, Member States were able to request changes to their existing RRPs to take into account 
new,  objective  circumstances,  such  as  high  inflation  and  supply  chain  disruptions. 
Furthermore,  in  the  context  of  the  REPowerEU  plan,  Member  States  could  benefit  from 
additional resources to introduce REPowerEU chapters and boost reforms and investments that 
diversify  the  EU’s  energy  supplies,  accelerate  the  green  transition  and  support  vulnerable 
households.  

At  the  half-way  point  of  this  unique  and  time-bound  instrument,  the  Commission  is 
publishing its mid-term evaluation. In line with the requirements of the RRF Regulation, the 
mid-term evaluation assesses how the RRF is delivering against its objectives, based on the 
evidence available so far. It does so by considering the five evaluation criteria of effectiveness, 
efficiency, relevance, coherence and European added value. The staff working document that 
accompanies  this  Communication  provides  further  details  on  the  Commission’s  mid-term 
evaluation.  The  evaluation  is  based  on  diverse  sources,  including  an  independent  study 
conducted by a consortium of external contractors, which is published in parallel, and broad 
consultations4.  

This Communication presents the main insights from the mid-term evaluation and takes 
stock  of  the  implementation  of  the  RRF.  Section  1  assesses  the  progress  made  so  far  in 
implementing the RRF, focusing on concrete results achieved on the ground. Section 2 looks 
at what has worked well and what could be improved, and identifies the key lessons learnt so 
far. Section 3 summarises and concludes, outlining the way ahead. 

4   Recovery and Resilience Facility (2020-2024) – mid-term evaluation (europa.eu) 

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1. The implementation of the RRF has made visible progress  

1.1. Implementation has led to tangible results in Member States  

Member States are delivering on the reforms and investments included in their RRPs. By 
the  end  of  2023,  more  than  1150  milestones  and  targets  had  already  been  assessed  by  the 
Commission  as  satisfactorily  fulfilled5.  Achieving  these  milestones  and  targets  has  led  to 
concrete results on the ground, with clear signs that the RRF is making a real difference across 
the EU. Box 1 illustrates this, with telling examples of investments and reforms with tangible 
progress already achieved on the ground, for instance  on aggressive tax planning, equal access 
to education, social inclusion, and support for sustainable mobility and transport.  

Box 1: The RRF is delivering tangible results on the ground 

Cyprus has strengthened its efforts in addressing aggressive tax planning. To ensure that 
payments  by  Multinational  Enterprises  do  not  leave  the  EU  untaxed,  Cyprus  adopted  a 
reform  which  introduces  a  withholding  tax  on  outbound  payments  to  “non-cooperative” 
jurisdictions. This is an important step and will pave the way for future actions on this issue. 

Bulgaria has taken steps to improve the adequacy and coverage of its minimum income 
scheme. Through the adoption of legislative amendments, Bulgaria introduced a gradual 
increase from 2022 to 2024 of the income thresholds for all potential beneficiaries of the 
minimum income scheme. This is a major step in addressing long-standing social challenges 
in the country. 

Austria has introduced the ‘KlimaTicket’, which is making climate-friendly mobility easy 
and  affordable.  It  introduces  a  single  flat-rate  ticket  providing  nearly  unlimited  public 
transport  across  Austria  and  has  discounted  prices  for  students,  seniors,  persons  with 
disabilities and families. Since its launch in October 2021, more than 260,000 Austrians 
have already bought the climate tickets.  

Lithuania has adopted the Millennium School Progress Programme, to reorganise and 
improve  school  infrastructure  and  ensure  equal  access  to  education  for  Lithuanian 
children.  The  programme  aims  to  ensure  that  all  children  have  access  to  high-quality 
schools,  regardless  of  their  background.  This  is  crucial  as  Lithuania  faces  urban-rural 
disparities and a socio-economic gap in education outcomes above the EU average. At least 
80% of Lithuanian municipalities will implement the Programme, resulting in 150 schools 
being supported by the end of June 2026. 

5   When Member States submit payment requests, the Commission assesses the evidence provided and establishes whether 
the requirements of the relevant milestones and targets laid down in the Annex to the Council Implementing Decision are 
met. This is a prerequisite to disburse funds.  

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In  line  with  the  progress  made  and  the  results  achieved,  EUR 225  billion  have  been 
disbursed in support of EU economies. Close to EUR 67 billion have been disbursed in pre-
financing, which helped alleviate the short-term impact of the crisis on Member States budgets 
and kickstart implementation.6 In addition, EUR 157.2 billion have been disbursed upon the 
satisfactory  fulfilment  of  milestones  and  targets,  reflecting  the  progress  with  reforms  and 
investments on the ground. A large part of these disbursements is linked to progress made in 
the implementation of reforms, which have deliberately been frontloaded to lay the groundwork 
for successful investments in the second half of the RRF lifetime.   

Around  75%  of  the  milestones  and  targets  planned  to  be  achieved  by  end  2023  have 
already either been assessed by the Commission as fulfilled or reported as completed by 
Member  States.7  Even  those  Member  States  that  have  so  far  neither  submitted  payment 
requests nor received funds from the RRF have already recorded progress with implementing 
the reforms and investments set out in their RRPs.  

1.2. All plans have been revised to maximise the RRF’s impact in a changing context 

In  2023,  Member  States  focused  on  making  their  RRPs  fit  to  address  new  challenges, 
while  advancing  with  their  implementation.  Increased  energy  prices,  high  inflation  and 
supply chain disruptions caused by Russia’s unprovoked war of aggression against Ukraine, 
and,  in  some  cases,  natural  disasters  made  it  challenging  for  Member  States  to  implement 
certain reforms and investments in their RRP. The Commission supported Member States8 in 
their efforts to mitigate these external constraints and to revise the relevant measures in their 
RRPs using the flexibility embedded in the RRF Regulation. Revisions were also the occasion 
to update the RRPs to take account of the revised financial allocation to Member States9 and 
tap into the remaining loan support10 available under the RRF. 

Plan revisions ensured that RRPs remain both ambitious and fit for purpose. All RRPs 
were updated in 2023, paying particular attention not only to the quality of the measures but 
also to their degree of maturity and their implementation horizon, given the timebound nature 
of the RRF. Commitments that were no longer achievable due to objective circumstances were 
adjusted and, in many cases, replaced by more suitable alternatives, while keeping the original 
ambition of the RRP intact. The RRF’s broad scope has provided the necessary flexibility for 
Member States to allocate resources according to their evolving priorities, in line with the RRF 
objectives. Box 2 provides examples of how the revisions have maximised the RRF’s impact 
in  areas  such  as  disaster  prevention,  quality  of  public  services  or  financial  instruments  to 
support SMEs. 

6   Out of the EUR 67 billion in pre-financing, EUR 10.4 billion has been disbursed at the end of 2023 and in early 2024 

upon the approval of the REPowerEU chapters.  

7   The data on completed milestones and targets is self-reported by Member States in the context of the bi-annual reporting. 
8   Guidance on Recovery and Resilience Plans in the context of REPowerEU - European Commission (europa.eu) 
9 

In line with Article 11(2) of the RRF Regulation, the maximum financial contribution for non-repayable financial support 
of each Member State was updated in June 2022 on the basis of Eurostat outturn data on the change in real GDP growth 
over 2020 and the aggregate change in real GDP for the period 2020-2021. 

10   Member States could request (additional) loan support until 31 August 2023, as stipulated in Article 14(2) of the RRF 
Regulation. Of the overall envelope of EUR 385.8 billion available for loan support under the RRF, close to EUR 291 
billion have been committed by end-2023.  

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Through the revisions, the size of EU support to Member States has grown significantly. 
Close to EUR 150 billion in financial support was made available to EU economies in 2023 
through both additional grants for the REPowerEU chapters and EUR 125.5 billion of loans. 
The large uptake of loan support demonstrates the continued attractiveness of the RRF as an 
instrument in supporting and transforming EU economies for the future. In total, and provided 
that all milestones and targets will be met, the RRF will inject EUR 650 billion in financial 
support to our EU economies.11  

Box 2: RRPs have been revised to maximise their impact in a changing context 

Slovenia has requested additional loan support to cater for the devastating effects of the 
floods  that  hit  the  country  in  August  2023.  The  additional  loans  will  further  support 
Slovenia’s resilience against the effects of climate change and boost its green transition, 
for example by investing in the sustainable renovation of buildings and the reconstruction 
of two regional railway lines, affected by the floods and storms.   

Italy has introduced targeted actions to reinforce the tools to reduce backlog in the civil 
justice system. This includes measures to strengthen the office of the trial and the set-up of 
incentive  schemes  for  judicial  offices  to  reach  their  objectives  in  terms  of  reducing  the 
number  of  pending  cases.  The  ultimate  objective  is  to  create  a  more  business  friendly 
environment, attracting more investments and fostering growth. 

Croatia has used additional loan support to cater for the effects of high inflation on its 
project on the public water supply network. Increased construction prices made part of the 
target  on  constructed  or  reconstructed  kilometres  of  the  public  water  supply  network 
unattainable. However, Croatia decided to request additional loan support not only to cater 
for the increased construction costs, but even to increase the ambition of the measure. The 
revised RRP now increases the final target from 956 to 1087 kilometres of constructed or 
reconstructed public water supply network. This will further increase the number of citizens 
that benefit from improved access to water supply.  

Spain has included financial instruments to improve SMEs’ access to finance. Given that 
SMEs play a key role in the Spanish economic landscape, Spain requested additional loans 
to improve SMEs’ access to capital markets and incentivise private investment, notably for 
SMEs operating in the green and digital sectors.  

11   By end-2023 (the deadline for committing NGEU-related RRF funds), close to EUR 650 billion in financial support to 
EU economies have been committed. This breaks down in EUR 357 billion in grants and EUR 291 billion in loans. 

5 

 
 
 
1.3. REPowerEU will further accelerate the green transition 

The RRF helps accelerate the EU’s green transition. The RRF Regulation requires that all 
RRPs dedicate at least 37% of the total allocation to measures supporting the green transition. 
All  Member  States  have  exceeded  this  target  (40%  on  average)  with  some  Member  States 
dedicating over 50% of their total plan to  climate objectives. In total, the estimated climate 
expenditure amounts to around EUR 275 billion. On top of that, all measures supported by the 
RRF must respect the principle of ‘do no significant harm’ (DNSH), making the RRF the first 
EU instrument where this principle is a horizontal general eligibility criterion. In addition, the 
RRF,  together  with  the  European  Social  Fund  Plus  and  the  Just  Transition  Fund,  supports 
employment and social policies, helping to make the green transition fair.  

REPowerEU contributes further to saving energy, speeding up the production of clean 
energy,  and  diversifying  the  EU’s  energy  supplies.  In  March  2023,  the  amended  RRF 
Regulation entered into force, requesting Member States to introduce REPowerEU chapters in 
their RRPs. Since then, 23 REPowerEU chapters12 have been approved. They include reforms 
and investments  that will help  save energy, contribute to  renewable energy production, and 
reduce our dependency on Russian fossil fuels by establishing more resilient energy networks.  

Through  the  REPowerEU  chapters,  an  additional  EUR  60  billion  will  be  dedicated  to 
speeding up the green transition. Newly requested loans for REPowerEU chapters make up 
EUR 40 billion of that, while additional grants for REPowerEU measures from resources under 
the Emission Trading System and the Brexit Adjustment Reserve make up the remainder. The 
reforms and investments introduced with the REPowerEU chapters complement and accelerate 
those already included in the RRPs. Box 3 provides examples of how the REPowerEU chapters 
accelerate  the  green  transition.  The  REPowerEU  measures  will  bring  forward  substantial 
investments with the aim, for example: to deploy renewable energy capacity, including more 
recently maturing technologies such as offshore wind; to install electricity storage capacity; to 
decarbonise  heating  systems;  to  develop  capacity  for  hydrogen  production;  and  to  support 
measures  to  alleviate  energy  poverty.  Moreover,  Member  States  have  included  ambitious 
reforms in their REPowerEU chapters, for instance to simplify administrative procedures and 
to  facilitate  the  deployment  of  renewable  energy  sources,  or  to  develop  green  skills  which 
should facilitate the transition for workers and SMEs.  

REPowerEU  will  also  promote  the  objectives  of  the  Green  Deal  Industrial  Plan13  and 
provide a more supportive environment to boost the EU industry’s competitiveness and 
to scale up the manufacturing capacity of net-zero-tech industries. RRPs, including their 
new  REPowerEU  chapters,  can  and  should  be  used  to  support  clean  tech  manufacturing. 
Examples of investments or reforms directly targeted at the net-zero industry can be seen in 
Spain,  Croatia,  Italy,  Poland  or  Portugal.  Examples  of  support  to  the  decarbonisation  of 
industry  can  be  seen  in  Belgium,  Germany,  Greece,  France,  Hungary,  Italy,  Portugal  or 

12   The remaining four Member States (Bulgaria, Germany, Ireland and Luxembourg) have not submitted a REPowerEU 

chapter to the Commission so far. 

13   Communication: A Green Deal Industrial Plan for the Net-Zero Age | European Commission (europa.eu) 

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Slovenia. All in all, EUR 68 billion from the RRF will support clean tech, clean energy and the 
decarbonisation of Europe’s industries. 

Box 3: REPowerEU accelerates the green transition 

The RRPs, with their unique mix of reforms and investments, significantly contribute to the 
decarbonisation  of  the  European  power  system.  Taking  into  account  the  EU  goals  of 
achieving  climate  neutrality  by  2050  and  the  intermediate  target  of  at  least  55%  GHG 
emissions reduction by 2030, as well as the ongoing dialogue on setting a reduction target 
for  2040  (see  the  recent  Commission  Communication  on  the  2040  climate  target,  COM 
(2024)63),  the  decarbonisation  of  the  electricity  markets  will  require  not  only  a 
technological  shift  to  renewable  energy  sources,  but  also  to  build  the  necessary 
infrastructure  to  ensure  energy  security  and  affordability  for  all  citizens.  To  this  end, 
Member States included further measures in their REPowerEU chapters. 

Decarbonise and make energy markets renewables-based: Member States accelerate and 
massively deploy renewable energy sources 

• Czechia has introduced far-reaching reforms that will remove permit requirements 
for  renewable  power  installations  of  up  to  50  KW,  shorten  permit  granting 
processes and provide a digital one-stop shop to help applicants with the permitting 
processes.  

• Belgium will develop an “energy island” in the Belgian North Sea that will enable 
the connection of at least 3.15 GW of future offshore wind energy to the onshore 
electricity grid.  

Ensure security of energy supply and affordable energy: Member States secure energy 
grids by improving infrastructure and addressing bottlenecks  

• Slovakia will upgrade 250 km of transmission lines, enhancing electricity trade with 
neighbouring Member States and optimising the use of electricity from renewable 
sources. 

• Latvia will increase the security and stability of energy supply to accelerate the 
cross-border project currently being implemented by Latvia, Lithuania, Estonia 
and Poland aimed at ensuring the synchronisation of the Baltic States’ electricity 
networks with the Continental Europe network. 

Boost  the  EU  industry’s  competitiveness:  Member  States  are  scaling  up  the 
manufacturing capacity of net-zero-tech industries 

Portugal  will  support  investments  in net-zero  technology  manufacturing projects 
with the goal of enhancing the competitiveness of the Portuguese industry. A total 
of EUR 50 million is allocated to support individual companies or projects to invest 
in technologies aligned with the Net-Zero Industry Act such as solar PV, onshore 
and offshore wind, and batteries and storage. 

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1.4. Implementation and disbursements are expected to pick up going forward 

Disbursements under the RRF slowed down in the first half of 2023 before catching up 
again in recent months. During much of 2023, Member States focused on revising their RRPs 
and  adding  REPowerEU  chapters,  notably  in  light  of  the  external  developments  mentioned 
above, leading to a slowdown in the submission of payment requests. As revisions of RRPs 
advanced, the submission of payment requests significantly picked up pace in the second half 
of 2023. Specifically, between May and December 2023, 26 payment requests were submitted 
and EUR 60.9 billion was disbursed. Most of these disbursements took place in the last quarter 
of 2023. By the end of 2023, eight Member States had already received more than 40% of their 
grant  allocation  and  overall,  more  than  34%  of  the  total  envelope  of  the  RRF  had  been 
disbursed. 

This  positive  momentum  is  expected  to  continue  with  a  faster  pace  of  implementation 
during the second half of the RRF’s lifetime. With 18 payment requests submitted towards 
the  end  of  2023,  over  650  milestones  and  targets  are  currently  under  assessment  by  the 
Commission.  Should  these  milestones  and  targets  be  assessed  as  satisfactorily  fulfilled,  an 
additional EUR 41 billion would be disbursed, bringing total disbursements by June 2024 to 
over 40 % of the RRF envelope This momentum is expected to continue in the second half of 
the  year.  Overall,  according  to  current  planning,  based  on  the  information  provided  by  the 
Member States, the Commission expects to receive more than 20 further payment requests this 
year, which would correspond to the disbursement of more than EUR 100 billion in 2024. 

Member States are expected to push ahead with implementation given that the RRF lasts 
until 2026. Implementation  must  accelerate for all reforms  and investments  included in the 
plans. The revisions of the plans in 2023 paved the way for this acceleration.  

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2.  The RRF has supported the recovery and brought innovation in EU spending 

2.1. The RRF effectively supports economic recovery in the EU 

While it is too early to assess the full extent of its impact, the RRF paved the way for the 
EU’s economic recovery. The determined and coordinated action at EU level under NGEU 
gave a strong signal of European unity that boosted economic confidence and helped stabilise 
market  expectations.  Following  the  creation  of  the  RRF,  most  initial  RRPs  were  prepared 
remarkably quickly by Member States in 2021 and implementation started rapidly. Economic 
activity bounced back to pre-pandemic levels by the third quarter of 2021. Employment rates 
reached record-high levels, while unemployment declined to record-low levels of around 6% 
in  May  2023  and  has  remained  close  to  these  record  lows  ever  since.  This  is  even  more 
remarkable  given  the  two  “once-in-a-generation  economic  shocks”  of  COVID-19  and  the 
energy crisis. The long-time scars on EU labour markets that they risked creating have been 
avoided.  These  positive  economic  and  employment  outcomes  are  of  course  not  solely 
attributable to the RRF. Other EU instruments – such as cohesion policy funds or the SURE 
instrument  of  support  to  mitigate  unemployment  risks  in  an  emergency  –  and  actions  by 
Member States and other EU institutions played a key role as well.  

The RRF has provided financial support to Member States, many of which lacked fiscal 
space  to  mitigate  the  social  and  economic  impact  of  the  COVID-19  crisis.  The  RRF 
delivered a swift response, disbursing EUR 56.5 billion as pre-financing in 2021 and 2022, and 
an additional EUR 10.4 billion of pre-financing in 2023 and early 2024, upon the approval of 
the REPowerEU chapters. This provided fast and direct support to Member States, in addition 
to  the  flexibilities  and  additional  funding  made  available  under  the  cohesion  policy  funds, 
playing a vital stabilising role in the aftermath of the crisis. These disbursements reduced urgent 
financing needs in Member States, supported early action to help businesses and citizens, and 
enabled  Member  States  to  implement  much-needed  immediate  investments  that  otherwise 
might  not  have  materialised.  The  considerable  narrowing  of  EU  sovereign  bond  spreads 
following the historic agreement to issue common EU bonds to finance NGEU and the RRF 
further contributed to reducing fiscal pressure.  

In  contrast  to  previous  crises,  public  investment  in  the  EU  was  maintained  and  even 
increased in the aftermath of the COVID-19 pandemic and the energy crisis, from 3.0% 
in 2019 to an expected 3.3% in 2023. The RRF has significantly contributed to this positive 
outcome. This encouraging trend is expected to continue in 2024 and 2025, as the aggregate 
public investment ratio is expected to rise to 3.5% of GDP by 2025. The Commission’s Autumn 
Economic  Forecast14  finds  that  around  half  of  the  expected  increase  in  public  investment 
between 2019 and 2025 is related to investments financed by the EU budget, particularly by 
the RRF.  

14   Autumn 2023 Economic Forecast: A modest recovery ahead after a challenging year - European Commission (europa.eu) 

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The  Commission’s  economic  modelling15  suggests  sizeable  macroeconomic  effects  of 
NGEU investment16. The model suggests that NGEU17 has the potential to increase EU real 
GDP by up to 1.4% in 2026 above a no-NGEU scenario18. This is similar to the estimates of 
other organisations19. The model also estimates that NGEU could increase EU employment by 
up to 0.8% in the short run, delivering persistently higher real wages in the medium term that 
reflect potential productivity gains of productive investment20.  

The  simultaneous  implementation  of  the  RRF  by  all  Member  States  is  estimated  to 
generate a sizeable positive spillover effect that increases average GDP, compared with a 
world without joint and coordinated action. These spillovers are estimated to generate an 
added value for the EU that amounts to between a quarter and a third of the total impact of the 
RRF. While all Member States are estimated to benefit from sizeable cross-border spillover 
effects  because  of  rising  demand  across  the  integrated  EU  economy,  the  joint  investment 
impulse from the RRF is also supporting upward economic convergence in the EU. The results 
predict  that  Member  States  with  below-average  GDP  specifically  gain  from  these  spillover 
effects, as they spur greater economic activity and cross-border trade. 

The RRF has been designed to concentrate support on lower-income and more vulnerable 
Member States hit hardest by the pandemic. The RRF allocation key, which determines how 
much  funding  each  Member  State  can  receive,  was  tailored  to  the  exceptional  crisis 
circumstances  at  the  time,  including  the  significant  uncertainty  on  the  effects  that  the  still 
evolving pandemic would have across the EU. Therefore, it considers both the socio-economic 
context at the onset of the pandemic and how Member States recovered from the crisis up until 
June 2022. At the same time, the RRF allocation key is still firmly grounded in the logic of 
economic  cohesion,  as  it  reflects  the  differences  in  GDP  per  capita  across  Member  States. 
Thanks to this, the RRF helps to counteract economic divergence, fostering economic stability 
and growth where it is most needed. Based on the Commission’s modelling, the increase in 
economic output in 2026 reaches up to 4.5% in Greece, more than 4% in Croatia, and around 
3.5% in Spain and Bulgaria, compared with the EU average impact of 1.4%. 

15   QUEST model (cf. footnote 2).   
16   To estimate the macroeconomic impact of the RRF, the European Commission has produced stylised ex-ante assessments 
of the macroeconomic impact of NGEU investment. These model simulations are not an ex-post evaluation of the actual 
impact, but rather an ex-ante model prediction based on stylised assumptions. Nonetheless, the simulations presented here 
integrate up-to-date information on loan requests, inflation, and expected spending profiles. They focus on investments 
as the macroeconomic effects of structural reforms is much more challenging to model. For further information, see in 
particular, Pfeiffer P., J. Varga and J. in 't Veld (2023) Quantifying spillovers of coordinated investment stimulus in the 
EU,  Macroeconomic  Dynamics  (27),  p.  1843–1865.  See  also  the  ECFN  Discussion  Paper  (2021):  https://economy-
finance.ec.europa.eu/publications/quantifying-spillovers-next-generation-eu-investment_en.  

17   The QUEST model results have been computed based on NGEU and not RRF investments. However, the investments 

(loans and non-repayable support) based on the RRF make up for around 90% of NGEU investments. 

18   Please  see  Annex  II  of  the  Staff  Working  Document  on  the  mid-term  evaluation  for  a  detailed  discussion  of  the 

assumptions and model specifications. 

19   See International Monetary Fund 2023 Article IV Consultation on the Euro Area (page 44), July 2023. 
20   Note  that  because  the  simulations  focus  on  public  investment  (without  accompanying  labour-market  reforms),  the 
employment effects are relatively short-lived and real wage increases reflect most medium and long-run labour market 
benefits in the simulations. By contrast, reforms targeting labour markets and increasing participation, which are included 
in numerous RRPs, can lead to large employment gains and higher potential growth in the medium and long run. 

10 

 
 
 
 
 
2.2. The  RRF  plays  a  key  role  in  supporting  structural  reforms  and  common  EU  policy 

priorities 

One  of  the  most  notable  successes  of  the  RRF  is  its  proven  ability  to  incentivise  the 
implementation  of  structural  reforms.  Making  RRF  disbursements  conditional  upon  the 
implementation  of  coherent  packages  of  investments  and  reforms  has  created  effective 
incentives for reform implementation. This notably includes reforms recommended for many 
years by the  EU in  the context of the European  Semester. All  plans had  to  address  all or  a 
significant  subset  of  the  relevant  country-specific  recommendations  (CSRs).  The  European 
Court of Auditors (ECA) confirmed that the RRPs contribute to addressing a significant subset 
of CSRs21. In the two years preceding the RRF, the share of 2016-2017 CSRs reaching at least 
‘some progress’ increased by only six percentage points from 53% in 2018 to 59% in 2020. In 
comparison, the share of 2019-2020 CSRs reaching at least ‘some progress’ increased by 17 
percentage points from 52% in 2021 before the implementation of the RRF to almost 69% in 
2023. Most progress has been made in the areas of access to finance and financial services, 
labour market functioning, anti-money laundering and the business environment. As Member 
States continue with the implementation of their plans, which address all or a significant subset 
of their CSRs, progress in addressing CSRs is expected to increase significantly going forward.  

RRF-supported structural reforms and investments have fostered progress on common 
policy  priorities  and  supported  socio-economic  convergence  in  the  EU.  Reforms  and 
investments supported by the RRF notably foster the green and digital transitions, as well as 
socio-economic convergence and implementation of the European Pillar of Social Rights. The 
RRF also  supports  reforms that enhance institutional  resilience,  for instance to  improve the 
functioning of public administrations as well as the effectiveness of judicial systems. Examples 
of relevant reforms and investments are showcased in Box 4. They include energy efficiency, 
digital public services,  sustainable transport, research and innovation, social protection, and 
access to the labour market, promoting gender equality. Looking ahead, the implementation of 
reforms and investments in line with the EU's policy priorities will continue to be a key goal 
of the EU’s policy framework, including  as part of fiscal surveillance. In the context of the 
review  of  the  EU  fiscal  rules,  the  Commission  placed  particular  importance  on  the  role  of 
reforms  and  investments  that  enhance  fiscal  sustainability  and  address  EU  priorities  and 
country-specific challenges.  

There are major synergies between the RRF and other EU funds, notably in the area of 
cohesion  policy.  With  the  parallel  implementation  of  the  RRF  and  cohesion  policy 
programmes, Member States had to make strategic decisions on which funds to use to finance 
qualifying  investments.  These  decisions  depended  on  the  respective  scope,  timeline  and 
eligibility  criteria of the funds. Several  Member  States have used the possibility to  finance, 
with  both  the RRF and  structural  funds,  enabling  reforms and investments  to  maximise the 
impact  of  EU  funding.  For  example,  the  Italian  RRP  includes  a  reform  to  improve  the 
effectiveness  of  public  investments  in  the  water  sector,  which  is  expected  to  help  address 
barriers to cohesion policy investments in sustainable water management. Similarly, under the 
RRF, Slovakia updated its legal framework to facilitate connecting new renewables to the grid, 
which will support the implementation of investments under cohesion policy to develop smart 

21 Special report 21/2022: Recovery and Resilience Facility and the NRRPs (europa.eu) 

11 

 
 
 
energy systems, grid and storage. While it is too early to provide a comprehensive assessment 
of  their  impact  on  the  ground,  these  synergies  between  the  RRF  and  other  EU  funds  are 
expected to  increase  as implementation of the RRF and cohesion policy  progresses  further. 
This  will  also  require  continued  engagement  and  coordination  between  all  stakeholders 
involved.  At  the  same  time,  the  focus  on  RRPs  implementation,  has,  among  other  factors, 
contributed to delays in implementing structural funds in some Member States, and there is 
scope to exploit synergies between the RRF and other EU funds even further. 

Box 4: The RRF accelerates the realisation of EU policy priorities 

With its wide scope and large financial envelope, the RRF provides substantial funding to 
advance the implementation of common EU policies.  

Enhancing energy efficiency in buildings is an EU priority, in order to achieve the EU’s 
climate  and  environmental  goals,  while  reducing  energy  bills  for  households  and 
businesses.  Thanks  to  the  RRF  more  than  EUR  102  billion  investment  will  be  made  in 
energy efficiency, together with ambitious reforms to tackle administrative barriers. 

• France invests EUR 1.9 billion through the RRF to support the energy renovation 
of social housing and the “MaPrimeRenov’” subsidy scheme for private housing. 
Through  the  plan,  more than  1.5 million  households will be supported (of which 
750 000 have already received the subsidy) in their energy renovation works. Spain 
will deliver on average 57 000 energy efficiency renovations of dwellings per year. 
This is above the initial target that was set out by the Spanish national energy and 
climate plan of 50 000 dwellings per year. 

Digitalisation of public administration will be significantly supported by the RRPs. The 
current EU objective, as set out in the Digital Decade policy programme and in the Digital 
Compass, is to ensure that by 2030 all key public services will be fully accessible online for 
everyone, including persons with disabilities. Key public services should comply with high 
security and privacy standards. Thanks to the RRF, more than EUR 48 billion are being 
invested in the digitalisation of public administration. 

• Greece  is  investing  EUR  2.8  billion  in  the  digital  transformation  of  its  public 
sector  entities.  The  reforms  and  investments  are  focused  on  the  digitisation  of 
archives  and  enhanced  digital  services,  incorporating  modern  IT  systems  and 
increased interoperability between systems and data. 

Research  and  Innovation  are  amongst  the  most  powerful  tools  to  boost  the  Union’s 
economies and competitiveness at global scale. CSRs were regularly addressed to Member 
States  to  enhance  the  effectiveness  of  policies  and  investments  supporting  research  and 
innovation. Thanks to the RRF, more than EUR 47 billion are being invested to accelerate 
the  development  and  transformation  of  the  R&I  system  in  Member  States  and  boost  the 
support to key technological areas.  

12 

 
 
 
• Czechia awarded public contracts of more than EUR 195 million to conduct R&D 
in  medical  sciences.  The  contracts  aim  for  five  consortia  (established  between 
universities, public research institutions and other public and private entities)  to 
conduct  R&D  in  priority  medical  sciences,  including  research  on  infectious 
diseases, cancer, neurosciences, metabolic disorders, cardiovascular diseases, as 
well as research on the socio-economic impact of diseases. 

Sustainable mobility is at the core of the EU’s policy priorities and transport had long been 
one of the hardest sectors to decarbonise. Thanks to the RRF, more than EUR 38 billion 
are being invested in railway infrastructure and networks. The measures also improve rail 
connectivity in Europe through the expansion of the TEN-T network. Many Member States 
support  this  expansion  with  the  introduction  of  the  European  Rail  Traffic  Management 
System  (ERTMS),  which  will  increase  safety  and  enhance  interoperability  of  trains  in 
Europe.  

•

Italy  is  rolling  out  2800km  of  ERTMS  thanks  to  the  Italian  RRP  to  fulfil  its 
objectives under the European Deployment Plan of ERTMS. In Germany, the RRP 
is supporting the digitalisation of railways for subsequent versions of ERTMS. 

Social  protection:  The  European  Pillar  of  Social  Rights  Action  Plan,  published  by  the 
Commission  in  March  2021,  inter  alia  sets  out  the  way  forward  for  strengthening  and 
modernising social protection systems. It includes a headline target to reduce the number 
of people at risk of poverty or social exclusion. Thanks to the RRF, more than EUR 14.1 
billion  are  being  invested  in  social  protection  in  complement  of  the  amounts  spent  with 
other EU spending. 

• Croatia  introduces  a  reform  and  an  investment  to  provide  social  mentoring  to 
individuals at risk of discrimination or in a marginalised position in society. These 
measures  will  roll  out  a  new  individualised  mentoring  service  at  social  welfare 
centres. This  new service will  focus on the  inclusion  of  persons with  disabilities, 
victims  of  violence,  homeless  people,  migrants,  Roma,  young  people,  persons 
serving prison sentences and members of other socially vulnerable groups. 

• Poland will implement a reform and an investment to improve the labour market 
situation  of  parents,  and  in  particular  of  women,  by  increasing  access  to  and 
availability  of  high-quality  childcare.  The  reform  is  expected  to  introduce  a 
framework  for  quality  standards  for  childcare,  including  binding  educational 
guidelines  and  standards  of  care  services  for  children  under  three  years  of  age, 
which will be accompanied by the implementation of an IT system to manage the 
financing  and  creation  of  childcare  facilities  and  the  creation  of  new  places  in 
childcare facilities. 

13 

 
 
 
 
 
 
 
2.3. The RRF fosters holistic policymaking and boosts national ownership, but there are calls 

for flexibility to be enhanced 

The mid-term evaluation highlights that combining reforms and investments under one 
instrument  through  comprehensive  national  medium-term  plans  (RRPs)  is  one  of  the 
most effective aspects of the RRF. The RRF supports a holistic and coherent set of reforms 
and investments that address both EU policy priorities and country-specific challenges. This 
approach incentivises methodical planning in each Member State and facilitates more efficient 
implementation. Coherent sequencing between reforms and investments allows, for instance, 
reforms  to  be  undertaken  first,  which  will  support  the  impact  of  subsequent  investments. 
Moreover,  synergies  between  reforms  and  investments  can  more  easily  be  exploited  where 
their implementation is coordinated in an integrated manner.  

Under the RRF, Member States can design reforms and investments in line with their 
priorities and needs, ensuring a targeted country-specific approach while supporting EU 
common policies. While the RRF Regulation sets out overarching criteria that the plans need 
to comply with, Member States are responsible for designing their plans and deciding on the 
reforms and investments to put forward, creating a strong sense of ownership, commitment, 
and accountability, which facilitates implementation. This is particularly the case for reforms, 
which often require national parliamentary approval. In addition, the close cooperation that is 
required between the Commission, national ministries and implementing bodies has brought 
positive externalities in terms of policy planning and improved inter-institutional coordination. 
At  the  EU  level,  the  European  Parliament  has  an  important  role  in  monitoring  the 
implementation of the RRF. This is illustrated by the 14 Recovery and Resilience Dialogues 
and 34 working group meetings that have taken place so far with the European Parliament. To 
further increase the visibility and transparency of the RRF, the Commission has launched an 
interactive map of projects supported by the RRF in each Member State22. 

The  involvement  of  regional  and  local  authorities,  social  partners,  civil  society 
organisations  and  other  relevant  stakeholders  is  a  key  factor  in  the  planning  and 
implementation  of  RRP  measures.  While  the  RRF  Regulation  requires  Member  States  to 
include information on the consultations conducted when drafting their national RRPs, the level 
and form of involvement of these stakeholders depends on national legal frameworks and can 
differ significantly from one Member States to another. Alongside national authorities, who 
take  on  the  main  coordination  and  oversight  role  under  the  current  legal  setting,  local  and 
regional  authorities,  as  well  as  social  partners,  civil  society  organisations  and  other 
stakeholders,  also  have  a  crucial  role  to  play.  Local  and  regional  authorities  and  relevant 
stakeholders, including social partners, have been pointing to their insufficient involvement in 
the design, implementation and monitoring of measures included in the RRPs. While this may 
be partly explained with the need for speed in designing RRPs in a crisis context, it is key that, 
going forward, their close involvement supports ownership and implementation on the ground. 
For  instance,  social  partners  should  play  a  pivotal  role  in  implementing  labour  market  and 
social policy reforms.  

22  https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-

facility_en#map 

14 

 
 
 
Sufficient  flexibility  in  the  design  and  implementation  of  RRPs  is  necessary  to  ensure 
continued added value and smooth implementation. Under the mid-term evaluation of the 
RRF,  Member  States  called  for  more  flexibility  in  the  implementation  of  their  plans.  For 
instance, Member States found  the definition of milestones  and targets too  detailed and the 
fixed composition of groups of milestones and targets for each instalment too rigid, in particular 
where unforeseen circumstances impact the originally planned implementation. This can cause 
implementation delays and administrative burden for all parties involved.  

The  Commission  acted  swiftly  upon  recommendations  that  transparency  in  the 
implementation of the RRF be enhanced. In line with  the recommendations made by the 
European Parliament and the European Court of Auditors, the Commission , with the help of 
Member States, used the opportunity of the plans’ revisions in 2023 to clarify the definition of 
milestones and targets, where relevant and necessary. In 2023, the Commission also published23 
its methodology for assessing milestones and targets, for partial suspension of payments and 
for reversal24 of milestones and targets  to clarify its application of the RRF Regulation  and 
provide Member States with greater awareness. While the additional guidance was welcomed, 
further reflections are needed on whether more could be done in this regard.  

RRPs  revisions  can  be  resource  –intensive,  but  targeted  adjustments  were  processed 
quickly. In general, revisions are considered cumbersome by Member States as they require 
extensive  justification  as  well  as  endorsement  by  the  Council,  thereby  weighing  on  the 
flexibility  of  the  instrument.  However,  provided  they  are  targeted,  they  can  be  undertaken 
relatively quickly. Germany’s and Luxembourg’s RRP revisions, for instance, were assessed 
by the Commission and approved by the Council in two months. This targeted approach could 
be  replicated  in  the  future  to  respond  promptly  to  new  implementation  challenges  while 
keeping the ambition of the plans intact and continuing to comply with the RRF Regulation’s 
requirements.  

Efforts  to  improve  the  administrative  capacity  of  Member  States  and  implementing 
bodies must continue. Some Member States have experienced difficulties in mitigating the 
increase  in  the  workload  of  administrations  since  the  inception  of  the  RRF.  Enhancing  the 
administrative capacity of Member States remains essential. It is key to make sure that Member 
States can reap the economic and social benefits of the RRF and other EU funds and contribute 
to  increasing  absorption.  Member  States  have  requested  and  received  support  from  the 
Technical Support Instrument (TSI), both for the design and implementation of their RRPs and 
REPowerEU chapters. Over 400 projects approved under the TSI are linked to the preparation 
or implementation of Member States’ RRPs. The Commission will continue to provide support 
and  advice  to  Member  States  to  address  administrative  capacity  issues  and  investment 
bottlenecks. Where needed, the Commission has encouraged Member States to include in their 
RRPs further support measures to facilitate the day-to-day management of the instrument (e.g. 
temporary staff, training, new IT systems) and improve the efficiency of public administrations 
(e.g.  reform  of  public  procurement  in  Slovakia  and  permitting  procedures  in  Poland; 
digitalisation of administrations and processes in Spain). 

23   Communication Implementation of the Recovery and Resilience Facility - European Commission (europa.eu) 
24   COM_2023_545_2_annex2_EN.pdf (europa.eu) 

15 

 
 
 
 
2.4. The RRF is the first major performance-based instrument at EU level  

Unprecedented  in  scale  and  ambition,  the  RRF  disburses  funds  based  on  concrete 
achievements, making it the first large-scale performance-based instrument at EU level. 
Rather than considering the costs incurred for the implementation of projects, as in cost-based 
instruments,  funds  are  unlocked  upon  the  achievement  of  milestones  and  targets,  which 
represent concrete steps in the implementation of reforms or investments by Member States, 
with a results-based or, also-called, performance-based approach.  

This  performance-based  approach  is  pivotal  to  the  RRF’s  effectiveness,  ensuring  the 
delivery of tangible results on the ground. The wide range of milestones and targets enables 
the effective monitoring of RRPs implementation , as they track the full life cycle of measures 
supported  by  the  RRF25.  The  approach  also  allows  for  disbursements  of  funds  upon  the 
achievement  of  intermediate  steps  in  reforms  and  investments,  rewarding  progress  towards 
results  and  actual  ‘performance’  on  the  ground.  Accordingly,  the  mid-term  evaluation 
highlights that because the RRF rewards progress along the way, disbursements are faster in 
comparison  with  other  EU  instruments.  Crucially,  this  approach  also  provides  effective 
incentives  for  Member States  to  deliver upon reforms, which do not  necessarily  come  with 
(financial) costs.  

Performance-based funding increases the coherence and predictability of EU spending. 
The  performance-based  nature  of  the  RRF  has  brought  a  more  holistic  approach  to  public 
spending, both at national and EU level. Providing direct financial support upon the fulfilment 
of  milestones  and  targets  yields  commitments  and  incentives  to  deliver  on  the  actual 
implementation  of  the  agreed  measures.  Furthermore,  RRPs  can  be  seen  as  contractual 
agreements between Member States and the EU where both parties willingly engage on the 
basis of clear commitments. In the context of the mid-term evaluation of the RRF, stakeholders 
noted that the performance-based approach has increased predictability and accountability. The 
specific  results  to  be  achieved  are  set  out  clearly  in  advance  (in  the  Council  Implementing 
Decisions), enhancing Member States’ ability to plan ahead. The approach requires an adequate 
specification of milestones and targets that avoids ambiguities regarding the implementation 
process and agreed measures. Overall, these features represent a shift in policy planning and 
implementation as well as in EU spending more broadly: the focus of spending is transferred 
from costs incurred to actual results and the delivery of agreed measures.  

2.5. The RRF’s reporting and control system will continue to require support and adjustments 

Despite the positive features of the performance-based approach, the RRF created entry 
costs  for  Member  State  administrations,  with  room  for  further  administrative 
simplification.  Concerning  the  design  of  the  instrument,  the  requirements  to  protect  the 
financial interests of the Union led to a similar amount of administrative work as for other EU 
funds  that  are  based  on  costs.  This  is  because  on  top  of  the  evidence  needed  to  prove  the 
fulfilment of milestones and targets, Member States need to collect different types of data for 
audit  and  control  purposes.  As  a  new  instrument,  the  RRF  created  entry  costs  for  national 

25   Additionally, the RRF Regulation introduces the concept of common indicators, which come on top of milestones and 
targets and whose purpose is to report on the overall performance and progress of the Facility towards its objectives. The 
mid-term evaluation highlighted weaknesses in the design of RRF common indicators, which should be taken into account 
in the reflection on future performance-based instruments. 

16 

 
 
 
 
administrations,  and  Member  States’  authorities  at  all  levels  found  the  audit  and  control 
procedures too complex. In addition, Member States complained about overlapping audits by 
national authorities, the Commission and the European Court of Auditors. This perception may 
have been exacerbated by the implementation of the RRF simultaneously with cohesion policy 
funds,  which  follow  different  rules  and  rely,  for  the  most  part,  on  cost-based  controls.  The 
complex audit and control framework has adversely affected the speed of implementation of 
the RRF. Identifying potential areas of simplification in this regard remains a priority for the 
Commission,  including  by  considering  the  very  thorough  work  carried  out  before 
disbursements are authorised, to verify  the satisfactory fulfilment of milestones and targets. 
This needs to be balanced, however, against the imperative to manage EU funds appropriately 
to  protect  the  financial  interests  of  the  Union  and  ensure  transparency  as  to  how  funds  are 
implemented, especially given the size of the instrument and the novel nature of the approach. 

17 

 
 
 
 
3.  The RRF will continue to deliver in the second half of its lifetime 

The RRF has been an effective response to the unprecedented economic and social impact 
of  the  COVID-19  pandemic.  It  has  been  vital  in  protecting  the  single  market,  avoiding 
increased economic divergences in the EU, fast-tracking the green and digital transition, and 
helping Member States transform their economies to make them fit for the future. The RRF has 
been  a  major  contributor  to  the  increased  levels  of  public  investment  during  and  after  the 
pandemic, and its establishment has constituted a step change in the EU’s capacity to respond 
to  economic  crises.  The  RRF  also  contributes  to  strengthening  Europe’s  long-term 
competitiveness and strategic autonomy. 

The RRF has brought a more holistic approach to EU spending. The RRF pays out based 
on progress and results achieved, rather than costs incurred, which provides predictability and 
accountability for both the Member States and the Commission. The consultations carried out 
under  the  mid-term  evaluation  show  that  there  is  broad  support  for  performance-based 
instruments  at  EU  level.  This  approach  to  EU  spending  has  already  inspired  major  new 
programmes, such as the Social Climate Fund and the Ukraine Facility. From this perspective, 
the  performance-based  nature  of  the  RRF  will  be  a  reference  point  in  discussions  on  EU 
spending instruments with a view to the next multiannual financial framework, and this mid-
term evaluation provides a relevant basis for drawing some lessons learnt.  

The  fast  roll-out  and  swift  disbursements  under  the  RRF  show  its  ability  to  support 
Member States in times  of  crisis, while the strong incentive  for implementing reforms 
helps  our  economies  and  societies  become  better  equipped  for  the  future.  The  RRF  is 
proving to be a key tool for delivering on long-standing reform needs in many Member States, 
and the combination of reforms and investments into one single instrument allows for better 
planning, synergies, and more coherent action in line with EU and national priorities.  

The  second  half  of  the  RRF’s  lifetime  has  now  started  and  implementation  should 
accelerate.  Delivering  on  the  ambitious  reforms  and  investments  by  2026  will  require 
significant efforts and continuous dedication from all Member States and the Commission. The 
Commission  will  continue  to  consider  ways  of  further  supporting  Member  States  in  the 
implementation of their plans and will seek to enhance complementarity among EU funding 
tools and between those tools and national budgets. While legislative changes do not appear 
appropriate  at  this  stage,  further  action  within  the  scope  of  the  RRF  Regulation  will  be 
considered to facilitate implementation.  

All  elements  are  in  place  to  ensure  that  the  RRPs  contribute  to  delivering  the  EU’s 
economic recovery and modernisation. In many cases, the reforms and investments included 
in each plan are already making a real and lasting difference on the ground. The revisions of 
the plans have laid the foundations for an acceleration of their implementation. In this way, the 
RRF’s reform and investment agenda is helping to create a more modern, prosperous, inclusive, 
climate-neutral, and sustainable EU that is resilient and better prepared for future opportunities 
and challenges. These goals must be achieved together, through close cooperation among all 
EU institutions, Member States, civil society, workers and businesses. 

18