NextGenerationEU: share of Recovery & Resilience Facility resources allocated by use
Following the economic fallout from the COVID-19 pandemic, the European Union agreed on an economic stimulus package with its member states, known as the Next Generation EU (NextGenEU) recovery package. The largest component of NextGenEU is the Recovery and Resilience Facility (RRF), an instrument that will provide 338 billion Euro in grants and 390 billion Euro in loans to EU member states in order to invest in the long-term economic recovery from the pandemic.
The RRF focuses on three areas of the member states' economies which are in urgent need of investment - provisions for a transition to green (renewable) energy sources, digitalization and modernization, and social, economic & institutional development. The member states were required to submit national plans for how they would spend the funds, with each member state largely free to determine its own needs.
Around 45 percent of the total RRF funds were allocated to Green Transition projects (not including projects which have a Green Transition element combined with one of the other categories), with member states such as Denmark, Poland, Belgium and Ireland allocating most of their funds to this category. On the other hand, Greece, Slovakia, Latvia and Cyprus all allocated more funds to projects which focus on social, economic, and institutional development. Germany was the country which dedicated the greatest share of its RRF funds to digital transformation, with around 37 percent of its total.
The RRF focuses on three areas of the member states' economies which are in urgent need of investment - provisions for a transition to green (renewable) energy sources, digitalization and modernization, and social, economic & institutional development. The member states were required to submit national plans for how they would spend the funds, with each member state largely free to determine its own needs.
Around 45 percent of the total RRF funds were allocated to Green Transition projects (not including projects which have a Green Transition element combined with one of the other categories), with member states such as Denmark, Poland, Belgium and Ireland allocating most of their funds to this category. On the other hand, Greece, Slovakia, Latvia and Cyprus all allocated more funds to projects which focus on social, economic, and institutional development. Germany was the country which dedicated the greatest share of its RRF funds to digital transformation, with around 37 percent of its total.
