The Recovery and Resilience Facility (RRF) вЂ“ How does it work?'

Fulfilment of agreed milestones and targets towards achieving the reforms and investments in the plans will unlock regular payment. The Recovery and Resilience Facility is performance based. It should also advance the green and digital transitions and make Member StatesвЂ™ economies and societies more resilient. Each plan sets out the reforms and investments to be implemented by end-2026 and Member States can receive financing up to a previously agreed allocation.Д®ach plan should effectively address challenges identified in the European Semester, particularly the country-specific recommendations of 20 adopted by the Council. To benefit from the support of the Facility, Member States submit their recovery and resilience plans to the European Commission. To finance NextGenerationEU, the European Commission, on behalf of the EU, will borrow on the capital markets. It finances reforms and investments in Member States from the start of the pandemic in February 2020 until 31 December 2026. The RRF entered into force on 19 February 2021. The Recovery and Resilience Scoreboard displays EU countriesвЂ™ progress in implementing their recovery and resilience plans and shows common indicators to report on progress and evaluate the Recovery and Resilience Facility and the national plans. 'Six pillars of the Recovery and Resilience FacilityвЂќ The Facility is structured around six pillars: green transition digital transformation economic cohesion, productivity and competitiveness social and territorial cohesion health, economic, social and institutional resilience policies for the next generation. 'Quantifying Spillovers of Next Generation EU Investment, Discussion Paper July 2021.'

The effects of NextGenerationEU on the EUвЂ™s real GDP (until 2024 in a high productivity scenario)

It also published a revised Guidance document on Recovery and Resilience Plans in the context of REPowerEU. This comes in addition to the large number of relevant reforms and investments which are already in the RRPs. In this respect, on, the Commission proposed to make targeted amendmentsВ to the RRF RegulationВ to integrate dedicated REPowerEU chapters in Member States' existing RRPs. The RRF is also at the heart of the implementation of the REPowerEU Plan, the CommissionвЂ™s response to the socio-economic hardships and global energy market disruption caused by Russia's invasion of Ukraine. Joint, coordinated action at the European level is more effective and benefits Member States more than individual national expenditures, not least due to significant spillover effects across countries. This exceeds the agreed targets of 37% for climate and 20% for digital spending. The visual shows that Member States have allocated almost 40% of the spending in their plans to climate measures and more than 26% on the digital transition across the 22 recovery and resilience plans approved so far. 'Twin transitions: climate neutrality and digital transitions' The RRF helps the EU achieve its target of climate neutrality by 2050 and sets Europe on a path of digital transition, creating jobs and spurring growth in the process.

It makes available в‚¬723.8 billion (in current prices) in loans (в‚¬385.8 billion) and grants (в‚¬338 billion) for that purpose It allows the Commission to raise funds to help Member States implement reforms and investments that are in line with the EUвЂ™s priorities and that address the challenges identified in country-specific recommendations under the European Semester framework of economic and social policy coordination. The Facility is a temporary recovery instrument. Readying Europe for the future вЂ“ the Recovery and Resilience Facility

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