Recovery and Resilience Facility: Germany and Greece present official recovery and resilience plans – The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology


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This article is brought to you in collaboration with the European Commission.

The Commission has received official recovery and resilience plans from Germany and Greece. These plans define the reforms and public investment projects that each Member State plans to implement with the support of the Recovery and Resilience Mechanism (FRR).

The RRF is the key instrument at the heart of NextGenerationEU, the EU’s plan to emerge stronger from the COVID-19 pandemic. It will provide up to € 672.5 billion to support investments and reforms (at 2018 prices). This breaks down into grants totaling 312.5 billion euros and 360 billion euros in loans. The FRR will play a crucial role in helping Europe to emerge stronger from the crisis and in ensuring green and digital transitions.

The presentation of these plans follows an intensive dialogue between the Commission and the national authorities of these Member States in recent months.

Germany’s recovery and resilience plan

Germany’s recovery and resilience plan includes measures totaling 27.9 billion euros. The maximum financial contribution in grants awarded to Germany under the Regulation amounts to € 25.6 billion. As the estimated cost of the German plan is higher than the allocation for Germany, any additional amount will be covered by Germany.

The German plan is structured around six political priorities. These include reform and investment measures related to climate action and energy transition, the digitization of the economy, infrastructure and education, social participation, strengthening of a health system resistant to pandemics, modernization of public administration and reduced barriers to investment. The projects of the plan cover the entire life of the FRR until 2026. The plan proposes projects in the seven key European areas. The plan also includes three important projects of common European interest (IPCEI) in the fields of hydrogen, cloud infrastructure and services and microelectronics.

Greece’s recovery and resilience plan

Greece has requested total support of € 30.5 billion under the FRR, € 17.8 billion in grants and € 12.7 billion in loans.

The Greek plan is structured around four pillars: green, digital, employment, skills and social cohesion, and private investment and economic and institutional transformation. The plan proposes investments and reforms linked to the seven key European areas.

Next steps

The Commission will assess the plans in the next two months on the basis of the eleven criteria set out in the regulation and translate its content into legally binding acts. This assessment will include, in particular, an examination of whether the plans are contributing to effectively addressing all or a significant subset of the challenges identified in the country-specific recommendations issued as part of the European Semester. The Commission will also assess whether plans devote at least 37% of spending to investments and reforms that support climate goals and 20% to digital transition. On the basis of a Commission proposal, the Council will normally have four weeks to adopt the Commission proposal.

The approval of the plan by the Council would pave the way for the disbursement of a pre-financing of 13% to each Member State. This is subject to the entry into force of the own resources decision, which must first be approved by all Member States.

The Commission has now received a total of three recovery and resilience plans, from Germany, Greece and Portugal. It will continue to work actively with other Member States to help them implement high quality plans.

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