Implementation report on the Recovery and Resilience Facility (RRF)

AT A GLANCE Plenary – June 2025 Implementation report on the Recovery and Resilience Facility (RRF) During the June plenary session, Parliament is due to discuss the joint report of the Committees on Budgets (BUDG) and Economic and Monetary Affairs (ECON) on the implementation of the RRF, which lays out Parliament's views on the RRF′s progress so far, proposes improvements for its remaining lifetime, and draws lessons for possible future performance-based budgetary instruments. Background The RRF was created in 2021 as the main investment tool of Next Generation EU (NGEU), the EU's response to the COVID-19 pandemic. Its budget of €650 billion (€359 billion in grants and €291 billion in loans, including €20 billion in grants for REPowerEU) finances reforms and investments in Member States which should address major challenges and contribute to the EU's policy priorities, including the green and digital transitions. As the EU's first performance-based instrument, the RRF relies on financing not linked to costs, with payments to Member States based on the satisfactory fulfilment of pre-agreed milestones and targets (M&Ts). As of 3 June 2025, disbursements under the RRF stood at €316 billion (49 % of the envelope); 31 % of M&Ts have been assessed as fulfilled and an additional 22 % reported as completed by Member States. European Parliament position Parliament's BUDG and ECON committees drafted a joint report to assess the implementation of the RRF, which is in its final...