Recovery and Resilience Facility: budget, States and sectors
The Recovery and Resilience Facility will provide an unprecedented €672.5 billion of loans and grants in front-loaded financial support for the crucial first years of the recovery. It is a temporary instrument (2021-2023 commitments) that will provide large-scale financial support to reforms and investments in order to mitigate the social and economic impacts of the crisis, advance the green and digital transition and make the EU more resilient.
The Recovery and Resilience Facility will provide Member States with €312.5 billion in grants, while the remaining €360 billion will be made available in loans, on a voluntary basis.
Each country will have a maximum grants envelope, determined based on a pre-defined allocation key, which takes into account population, GDP per capita and unemployment. This means that countries most affected by the pandemic and those with low per capita income and high unemployment will receive a larger envelope of funding.
Italy, Spain, France, Poland and Germany will most benefit from the new instrument.
Green and Digital priorities
The EU has expressed a strong intention to make Europe's economic recovery consistent with the achievement of the bloc's longer-term climate and digital objectives. The Recovery and Resilience Facility brings a unique opportunity to mitigate the social and economic impacts of the crisis and to speed up the recovery in Europe.
The National Recovery and Resilience Plans will reflect the twin green and digital dimensions:
37% of expenditure should be allocated to green investments and reforms
- 20% of expenditure will be dedicated to digital investments and reforms
Considering the grants envelopes alone, at least €115 bn will be invested in green priorities and €62.5 bn will support the digital transition across the EU in the next three years.
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