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Implementation of the Recovery and Resilience Facility (RRF), which began in 2021, will go on until the end of 2026. In 2024, the fourth year, this implementation is well under way, although with some differences having emerged across EU Member States. In AugBriefing - Partial payments under the Recovery and Resilience Facility: An overview - 23-09-2024
Implementation of the Recovery and Resilience Facility (RRF), which began in 2021, will go on until the end of 2026. In 2024, the fourth year, this implementation is well under way, although with some differences having emerged across EU Member States. In August 2024, disbursements had reached €170.8 billion in grants and €94.6 billion in loans, or 41 % of the total RRF funding available. With the exception of pre-financing, the condition for disbursing RRF funds to Member States is the successful achievement of pre-defined milestones and targets, or qualitative and quantitative steps. They are laid out in the annexes to the Council implementing decisions endorsing the individual national recovery and resilience plans, and linked to each payment request. The RRF Regulation envisages the possibility of suspending all or part of the financial contribution available to Member States if milestones and targets have not been satisfactorily achieved. At an early stage of RRF implementation, both the European Court of Auditors and the European Parliament urged the European Commission to develop a methodology that would allow the impact of not meeting a milestone or target to be quantified. In February 2023, the Commission delivered on that request and published a methodology for partial suspension of payments. As a result, the Commission has been able to proceed with partial payments to Member States corresponding to what they have achieved, despite the non-fulfilment (or partial fulfilment) of one or more milestones or targets linked to a given request. This has helped keep RRF implementation on track. The suspension payment methodology has already been applied in several instances. The first country to be subject to it was Lithuania, followed by Romania, Portugal, Italy, Spain and Belgium. In 2023, a total of €841 million was withheld (0.13 % of all RRF funds). While Member States have generally welcomed the methodology, it is still perceived as lacking in clarity and raises questions, not least as to the discretion it affords the Commission in defining the amounts to be suspended. Source : © European Union, 2024 - EP Read more