Sittings · Document

REPORT (2024/2085(INI)) 2025-05-28

On the implementation of the Recovery and Resilience Facility

Committee on Budgets Committee on Economic and Monetary Affairs · Rapporteur: Victor Negrescu, Siegfried Mureşan

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the implementation of the Recovery and Resilience Facility

(2024/2085(INI))

The European Parliament,

having regard to Article 175 of the Treaty on the Functioning of the European Union,

having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (RRF Regulation),

having regard to Regulation (EU, Euratom) 2023/435 of the European Parliament and of the Council of 27 February 2023 amending Regulation (EU) 2021/241 as regards REPowerEU chapters in recovery and resilience plans and amending Regulations (EU) No 1303/2013, (EU) 2021/1060 and (EU) 2021/1755, and Directive 2003/87/EC (REPowerEU Regulation),

having regard to Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (Rule of Law Conditionality Regulation),

having regard to Council Regulation (EU, Euratom) 2024/765 of 29 February 2024 amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027 (MFF Regulation),

having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (the IIA),

having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (Financial Regulation),

having regard to Regulation (EU) 2024/795 of the European Parliament and of the Council of 29 February 2024 establishing the Strategic Technologies for Europe Platform (STEP), and amending Directive 2003/87/EC and Regulations (EU) 2021/1058, (EU) 2021/1056, (EU) 2021/1057, (EU) No 1303/2013, (EU) No 223/2014, (EU) 2021/1060, (EU) 2021/523, (EU) 2021/695, (EU) 2021/697 and (EU) 2021/241,

having regard to Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97,

having regard to its resolution of 23 June 2022 on the implementation of the Recovery and Resilience Facility,

having regard to the Commission notice of 22 July 2024 entitled ‘Guidance on recovery and resilience plans’,

having regard to the Commission communication of 21 February 2024 on strengthening the EU through ambitious reforms and investments (COM(2024)0082),

having regard to the Commission’s third annual report of 10 October 2024 on the implementation of the Recovery and Resilience Facility (COM(2024)0474),

having regard to the Court of Auditors’ (ECA) annual report of 10 October 2024 on the implementation of the budget for the 2023 financial year, together with the institutions’ replies,

having regard to special report 13/2024 of the ECA of 2 September 2024 entitled ‘Absorption of funds from the Recovery and Resilience Facility – Progressing with delays and risks remain regarding the completion of measures and therefore the achievement of RRF objectives’, special report 14/2024 of the ECA of 11 September 2024 entitled ‘Green transition – Unclear contribution from the Recovery and Resilience Facility’, and special report 22/2024 of the ECA of 21 October 2024 entitled ‘Double funding from the EU budget – Control systems lack essential elements to mitigate the increased risk resulting from the RRF model of financing not linked to costs’,

having regard to the study of December 2023 supporting the mid-term Evaluation of the Recovery and Resilience Facility,

having regard to the European Public Prosecutor’s Office (EPPO) 2024 annual report published on 3 March 2025,

having regard to the report of September 2024 by Mario Draghi entitled ‘The future of European competitiveness’ (Draghi report),

having regard to the opinion of the Committee of the Regions of 8 October 2024 entitled ‘Mid-term review of the post-COVID European recovery plan (Recovery and Resilience Facility)’,

having regard to the information published on the Recovery and Resilience Scoreboard (RRF Scoreboard),

having regard to the Commission staff working document of 20 November 2024 entitled ‘NGEU Green Bonds Allocation and Impact report 2024’ (SWD(2024)0275),

having regard to its in-house research, in-depth analysis and briefings related to the implementation of the RRF,

having regard to its resolution of 18 January 2024 on the situation in Hungary and frozen EU funds,

having regard to Rule 55 of its Rules of Procedure, as well as Article 1(1)(e) of, and Annex 3 to, the decision of the Conference of Presidents of 12 December 2002 on the procedure for granting authorisation to draw up own-initiative reports,

having regard to the opinions of the Committee on Budgetary Control, the Committee on Employment and Social Affairs, the Committee on the Environment, Climate and Food Safety and the Committee on Transport and Tourism,

having regard to the joint deliberations of the Committee on Budgets and the Committee on Economic and Monetary Affairs under Rule 59 of the Rules of Procedure,

having regard to the report of the Committee on Budgets and the Committee on Economic and Monetary Affairs (A10-0098/2025),

A. whereas the Recovery and Resilience Facility (RRF) was created to make European economies and societies more sustainable, resilient and better prepared in the light of unprecedented crises in 2019 and 2022, by supporting Member States in financing strategic investments and in implementing reforms;

B. whereas reforms and investments under the RRF help to make the EU more resilient and less dependent by diversifying key supply chains and thereby strengthening the strategic autonomy of the EU; whereas reforms and investments under the RRF also generate European added value;

C. whereas the RRF, as well as other EU funds, such as the European instrument for temporary support to mitigate unemployment risks in an emergency, has helped to protect labour markets from the risk of long-term damage caused by the double economic shock of the pandemic and the energy crisis;

D. whereas RRF expenditure falls outside the ceilings of the multiannual financial framework (MFF) and borrowing proceeds constitute external assigned revenue; whereas Parliament regrets that they do not form part of the budgetary procedure; whereas based on the Financial Regulation’s principle of transparency, citizens should know how and for what purpose funds are spent by the EU;

E. whereas, due to the lack of progress in introducing new own resources in the EU and the need to ensure the sustainability of the EU’s repayment plan, a clear and reliable long-term funding strategy is essential to meet repayment obligations without forcing difficult trade-offs in the EU budget that could undermine future investments and policy priorities; whereas further discussions and concrete financial solutions will be necessary to secure the long-term viability of the EU’s debt repayment plan;

F. whereas the borrowing costs for NextGenerationEU (NGEU) have to be borne by the EU budget and the actual costs exceed the 2020 projections by far as a result of the high interest rates; whereas the total costs for NGEU capital interest repayments are projected to be around EUR 25 to 30 billion per year from 2028, equivalent to 15-20 % of the 2025 annual budget; whereas Parliament has insisted that the refinancing costs be placed over and above the MFF ceilings; whereas a three-step ‘cascade mechanism’ including a new special EURI instrument was introduced during the 2024 MFF revision to cover the significant cost overruns resulting from NGEU borrowing linked to major changes in the market conditions; whereas an agreement was reached during the 2025 budgetary procedure to follow an annual 50/50 benchmark, namely to finance the overrun costs in equal shares by the special EURI instrument de-commitment compartment and the Flexibility Instrument;

G. whereas the bonds issued to finance the RRF are to be repaid in a manner that ensures the steady and predictable reduction of liabilities, by 2058 at the latest; whereas the Council has yet to adopt the adjusted basket of new own resources proposed by the Commission, which raises concerns about the viability of the repayment of the debt undertaken under NGEU;

H. whereas the social dimension is a key aspect of the RRF, contributing to upward economic and social convergence, restoring and promoting sustainable growth and fostering the creation of high-quality employment;

I. whereas the RRF should contribute to financing measures to strengthen the Member States’ resilience to climate disasters, among other things, and enhance climate adaptation; whereas the Member States should conduct proper impact assessments for measures and should share best practice on the implementation of the ‘do no significant harm’ (DNSH) principle;

J. whereas the RRF plays an important role in supporting investments and reforms in sustainable mobility, smart transport infrastructure, alternative fuels and digital mobility solutions, thus enhancing connectivity and efficiency across the EU; whereas it is regrettable that only a few Member States chose to use the RRF to support investments, particularly in high-speed railway and waterway infrastructure, aimed at developing European corridors, despite the encouragement of cross-border and multi-country projects; whereas it is crucial to increase investments in transport infrastructure, particularly in underserved regions, to improve connectivity, support regional cohesion and contribute to the green transition;

K. whereas by 31 December 2024, Member States had submitted 95 payment requests and the level of RRF disbursements including pre-financing stood at EUR 197.46 billion in grants (55 % of the total grants envelope) and EUR 108.68 billion in loans (37 % of the total loans envelope); whereas three Member States have already received their fifth payment, while one Member State has not received any RRF funding; whereas all Member States have revised their national recovery and resilience plans (NRRP) at least once; whereas 28 % of milestones and targets have been satisfactorily fulfilled and the Commission has made use of the possibility to partially suspend payments where some milestones and targets linked to a payment request were not found to be satisfactorily fulfilled; whereas delays in the execution of planned reforms and investments, particularly in social infrastructure and public services, could lead to the underutilisation of available resources, thereby reducing the expected impact on economic growth, employment and social cohesion;

L. whereas the ECA has revealed various shortcomings of the RRF, in particular in relation to its design, its transparency and reporting, the risk of double funding and the implementation of twin transition measures;

M. whereas robust audit and control systems are crucial to protect the financial interests of the EU throughout the life cycle of the RRF; whereas the milestones commonly known as ‘super milestones’, in particular related to the rule of law, had to be fulfilled prior to any RRF disbursements;

N. whereas the RRF Regulation refers to the RRF’s ‘performance-based nature’ but does not define ‘performance’; whereas RRF performance should be linked to sound financial management principles and should measure how well an EU-funded action, project or programme has met its objectives and provided value for money;

O. whereas effective democratic control and parliamentary scrutiny over the implementation of the RRF require the full involvement of Parliament and the consideration of all its recommendations at all stages;

P. whereas the Commission has to provide an independent ex post evaluation report on the implementation of the RRF by 31 December 2028, consisting of an assessment of the extent to which the objectives have been achieved, of the efficiency of the use of resources and of the European added value, as well as a global assessment of the RRF, and containing information on its impact in the long term;

Q. whereas the purpose of this report is to monitor the implementation of the RRF, in accordance with Parliament’s role as laid down in the RRF Regulation, by pointing to the benefits and shortcomings of the RRF, while drawing on the lessons learnt during its implementation;

Strengthening Europe’s social and economic resilience

1. Highlights the fact that the RRF is an unprecedented instrument of solidarity in the light of two unprecedented crises and a cornerstone of the NGEU instrument, ending in 2026; emphasises the importance of drawing lessons from its implementation for the upcoming MFF, including as regards transparency, reporting and coherent measurement of deliverables; highlights the stabilising effect of the RRF for Member States at a time of great economic uncertainty, as it mitigates negative economic and social consequences and supports governments by contributing to the implementation of the European Pillar of Social Rights, by promoting economic recovery and competitiveness, boosting resilience and innovation, and by supporting the green and digital transitions;

2. Highlights the important role of the RRF in preventing the fragmentation of the internal market and the further deepening of macroeconomic divergence, in fostering social and territorial cohesion by providing macroeconomic stabilisation, and in offering assurance to the financial markets by improving investor confidence in turbulent times, thereby lowering yield spreads;

3. Welcomes the fact that the RRF is a one-off instrument providing additional fiscal space that has contributed to the prevention of considerable economic and social divergences between Member States with diverse fiscal space; highlights the Commission finding that the RRF has led to a sustained increase in investments across the EU and that the Commission expects the RRF to have a lasting impact across the EU beyond 2026, given its synergies with other EU funds; is, however, concerned that the RRF expiration in 2026 poses a significant risk of a substantial decline in public investment in common European priorities;

4. Recalls that the MFF and RRF combined amount to almost EUR 2 trillion for the 2021-2027 programming period, but points to the fact that the high inflation rates and the associated increases in the cost of goods and services have decreased the current value of European spending agreed in nominal terms;

5. Takes note of the Commission’s projection in 2024 concerning the potential of NGEU’s impact on the EU’s real gross domestic product (GDP) by 2026, which is significantly lower than its simulation in 2020 (1.4 % compared with 2.3 %), due in part to adverse economic and geopolitical conditions, and of the estimation that NGEU could lead to a sizeable, short-run increase in EU employment by up to 0.8 %; notes that the long-term benefits of the RRF on GDP will likely exceed the budgetary commitments undertaken by up to three to six times , depending on the productivity effects of RRF investment and the diligent implementation of reforms and investments;

6. Highlights the difficulty of quantifying the precise social and economic impact of the RRF, as it takes time for the impact of reforms and investments to become clear; stresses the need for further independent evaluations to assess the effective impact of reforms and investments and for further improvements of the underlying methodology; notes the Commission’s finding that approximately half of the expected increase in public investment between 2019 and 2025 is related to investment financed by the EU budget, particularly by the RRF, but notes that some investments have not yet delivered measurable impact;

7. Notes that the RRF has incentivised the implementation of some reforms included in the country-specific recommendations made in the context of the European Semester through the inclusion of such reforms in the NRRPs; underlines that there has been a qualitative leap forward in terms of monitoring RRF implementation; recalls that the RRF Scoreboard is used to monitor the progress made towards achieving milestones and targets, as well as compliance with horizontal principles, and in particular the six pillars, namely the green transition, the digital transformation, smart, sustainable and inclusive growth (including economic cohesion, jobs, productivity, competitiveness, research, development and innovation, and a well-functioning internal market with strong small and medium-sized enterprises (SMEs)), social and territorial cohesion, health, economic, social and institutional resilience with the aim of, inter alia, increasing crisis preparedness and crisis response capacity, and policies for the next generation, children and young people, such as education and skills; highlights that the overall uptake of country-specific recommendations made in the context of the European Semester remains low and has even dropped;

8. Highlights that in the context of the new economic governance framework, the set of reforms and investments underpinning an extension of the adjustment period should be consistent with the commitments included in the approved NRRPs during the period of operation of the RRF and the Partnership Agreement under the Common Provisions Regulation; observes that the five Member States that requested an extension of the adjustment period by 31 December 2024 relied partly on the reforms and investments already approved under the RRF to justify the extension; takes note of the fact that most Member States have included information on whether the reforms and investments listed in the medium-term fiscal-structural plans are linked to the RRF;

9. Welcomes the fact that the RRF provides support for both reforms and investments in the Member States, but notes with concern that the short timeframe for the remaining RRF implementation poses challenges to the completion of key reforms and large-scale investments that are to be finalised towards the end of the RRF and to the timely fulfilment of the 70 % of milestones and targets that are still pending;

10. Recalls that RRF expenditure should not substitute recurring national budgetary expenditure, unless duly justified, and should respect the principle of additionality of EU funding; insists that the firm, sustainable and verifiable implementation of non-recurrence, together with the targeting of clearly defined European objectives of reforms and investments, is key to ensure additionality and the long-lasting effect of additional European funds; recalls the need to uphold this principle and appeals against the crowding out or replacement of cohesion policy by the RRF or other temporary instruments, as cohesion policy remains essential for long-term sustainable territorial cohesion and convergence;

11. Highlights that prioritising RRF implementation, the lack of administrative capacity in many Member States and challenges posed by global supply chains have contributed to the delayed implementation of cohesion policy; calls on the Commission, in this context, to provide a comprehensive assessment of the RRF’s impact on other financial instruments and public investments, technical support, and the administrative and absorption capacities of the Member States;

12. Recalls that, in reaction to Russia’s war of aggression against Ukraine, the REPowerEU revision contributes to Europe’s energy security by reducing its dependence on fossil fuels, diversifying its energy supplies, investing in European resources and infrastructure, tackling energy poverty and investing in energy savings and efficiency in all sectors, including transport; emphasises that through REPowerEU, an additional EUR 20 billion in grants was made available in 2023, including EUR 8 billion generated from the front-loading of Emissions Trading System allowances and EUR 12 billion from the Innovation Fund; highlights Parliament’s successes in negotiations, in particular on the provisions on replenishing the Innovation Fund, the 30 % funding target for cross-border projects, the focus of investments on tackling energy poverty for vulnerable households, SMEs and micro-enterprises, and the flexible use of unspent cohesion funds from the 2014-2020 MFF and of up to 7.5 % of national allocations under the 2021-2027 MFF;

13. Recalls its call to focus RRF interventions on measures with European added value and therefore regrets the shortage of viable cross-border or multi-country measures, including high-speed railway and sustainable mobility infrastructure projects for dual use that are essential for completing the TEN-T network, and the related risk of re-nationalising funding; notes that the broad scope of the RRF objectives has contributed to this by allowing a wide variety of nationally focused projects to fall within its remit;

14. Highlights the modification of Article 27 of the RRF Regulation through REPowerEU, which significantly strengthened the cross-border and multi-country dimensions of the RRF by encouraging the Member States to amend their NRRPs to add RepowerEU chapters, including a spending target of at least 30 % for such measures in order to guarantee the EU’s energy autonomy; is concerned by the broad interpretation adopted by the Commission, which allows any reduction in (national) energy demand to make a case for a cross-border and multi-country dimension;

15. Welcomes the possibility of using RRF funding to contribute to the objectives of the Strategic Technologies for Europe Platform (STEP) by supporting investments in critical technologies in the EU in order to boost its industrial competitiveness; notes that no Member State has made use of the possibility to include in its NRRP an additional cash contribution to STEP objectives via the Member State compartment of InvestEU; recalls that Member States can still amend their national plans in that regard; expects the revision processes to be efficient, streamlined and simple, especially considering the final deadline of 2026, the current geopolitical context and the need to invest in European defence capabilities;

16. Recalls the application of the DNSH principle for all reforms and investments supported by the RRF, with a targeted derogation under REPowerEU for energy infrastructure and facilities needed to meet immediate security of supply needs; encourages the Commission to assess the feasibility of a more uniform interpretation of the DNSH principle between the RRF and the EU taxonomy for sustainable activities, while taking into account the specificities of the RRF as a public expenditure programme;

Financial aspects of the RRF

17. Stresses that the RRF is the first major performance-based instrument at EU level which is exclusively based on financing not linked to costs (FNLC); recalls that Article 8 of the RRF Regulation stipulates that the RRF must be implemented by the Commission in direct management in accordance with the relevant rules adopted pursuant to Article 322 TFEU, in particular the Financial Regulation and the Rule of Law Conditionality Regulation; regrets that the Council did not agree to insert specific rules in the Financial Regulation to address the risks of this delivery model, such as double funding; considers that the rules of the Financial Regulation should be fully applicable to future instruments based on FNLC, including as regards fines, penalties and sanctions;

18. Notes that only 13 Member States have requested loans and that EUR 92 billion of the EUR 385.8 billion available will remain unused since this amount was not committed by the deadline of 31 December 2023; takes note of the fact that loans were attractive for Member States that faced higher borrowing costs on the financial markets or that sought to compensate for a reduction in RRF grants; points out that some Member States have made limited use of RRF loans, either due to strong fiscal positions or administrative considerations; calls on the Commission to analyse the reasons for the low uptake in some Member States and to consider these findings when designing future EU financial instruments; notes with concern that national financial instruments to implement the NRRPs have not been sufficiently publicised, leading to limited awareness and uptake by potential beneficiaries; considers that a political discussion is needed on the use of unspent funds in the light of tight public budgets and urgent EU strategic priorities; calls for an assessment of how and under which conditions unused RRF funds could be redirected to boost Europe’s competitiveness, resilience, defence, and social, economic and territorial cohesion, particularly through investments in digital and green technologies aligned with the RRF’s original purpose;

19. Recalls the legal obligation to ensure full repayment of NGEU expenditure by 31 December 2058 at the latest; reminds the Council and the Commission of their legal commitment under the interinstitutional agreement concluded in 2020 to ensure a viable path to refinancing NGEU debt, including through sufficient proceeds from new own resources introduced after 2021 without any undue reduction in programme expenditure or investment instruments under the MFF; deplores the lack of progress made in this regard, which raises concerns regarding the viability of the repayment of the debt undertaken under NGEU, and urges the Council to adopt new own resources without delay and as a matter of urgency; urges the Commission, furthermore, to continue efforts to identify additional genuine new own resources beyond the IIA and linked to EU policies, in order to cover the high spending needs associated with the funding of new priorities and the repayment of NGEU debt;

20. Notes with concern the Commission’s estimation that the total cost for NGEU capital interest repayments are projected to be around EUR 25 to 30 billion per year from 2028, equivalent to 15-20 % of the 2025 annual budget ; recalls that recourse to special instruments had to be made in the last three budgetary procedures to cover EURI instrument costs; highlights that the significant increase in financing costs puts pressure on the future EU budget and limits the capacity to respond to future challenges;

21. Takes note of the Commission’s target to fund up to 30 % of NGEU costs by issuing greens bonds; notes that by 31 December 2024 the Commission had issued European green bonds amounting to EUR 68.2 billion;

Design and implementation of NRRPs

22. Notes that 47 % of the available RRF funds had been disbursed by 31 December 2024, with grants reaching 55 % and loans 37 %, which has resulted in a high proportion of measures still to be completed in 2025 and 2026; is concerned, however, about the ECA’s finding that only 50 % of disbursed funds had reached final beneficiaries in 15 out of 22 Member States by October 2023; calls on the Commission to take the recommendations of the ECA duly into account in order to improve the functioning of any future performance-based instruments similar to the RRF, in particular in the context of a more targeted MFF;

23. Welcomes the fact that all Member States have surpassed the targets for the green (37 %) and the digital transitions (20 %), with average expenditure towards climate and digital objectives of the RRF as a whole standing at 42 % and 26 % respectively; notes that the ECA has cast doubt on how the implementation of RRF measures has contributed to the green transition and has recommended improvements to the methodologies used to estimate the impact of climate-related measures; highlights the fact that the same methodological deficiencies exist across all pillars of the RRF;

24. Notes the tangible impact that the RRF could have on social objectives, with Member States planning to spend around EUR 163 billion; underlines that such spending must be result-oriented, ensuring measurable economic and/or social benefits; stresses the need to accelerate investments in the development of rural, peripheral and outermost, isolated and remote areas, and in the fields of affordable housing, social protection and the integration of vulnerable groups, and youth employment, where expenditure is lagging behind; calls for an in-depth evaluation by the Commission, under the RRF Scoreboard, of the projects and reforms related to education and young people implemented by Member States under the RRF; regrets the delayed implementation of health objectives observed in certain Member States, given that the instrument should also improve the accessibility and capacity of health systems, and of key social infrastructure investments, including early childhood education and care facilities; stresses that these delays, in some cases linked to shifting budgetary priorities and revised national implementation timelines, risk undermining the achievement of the RRF’s social cohesion objectives;

25. Reiterates its negotiating position to include targets for education (10 %) and for cultural activities (2 %); encourages the Commission’s effort to evaluate these targets as a benchmark in its assessment of education policy in NRRPs, through the RRF Scoreboard;

26. Observes that a large majority of NRRPs include a specific section explaining how the plan addresses gender-related concerns and challenges; is concerned, however, that some NRRPs do not include an explanation of how the measures in the NRRP are expected to contribute to gender equality and equal opportunities for all and calls on the Member States concerned to add such explanations without delay;

27. Stresses the importance of reforms focusing on labour market fragmentation, fostering quality working conditions, addressing wage level inequalities, ensuring decent living conditions, and strengthening social dialogue, social protection and the social economy;

28. Notes the tangible impact that the RRF could have on the digital transformation objective, with EUR 166 billion allocated to corresponding plans; welcomes the contributions made under the smart, sustainable and inclusive growth pillar, in particular to competitiveness and support for SMEs; notes the need for an acceleration of investments in transnational cooperation, support for competitive enterprises leading innovation projects, and regulatory changes for smart, sustainable and inclusive growth, which are lagging behind;

29. Stresses that the success of EU investments depends on well-functioning capital markets; calls on the Member States to ensure a more effective and timely disbursement of funds, particularly for SMEs and young entrepreneurs, to streamline application procedures with a view to enhancing accessibility and to implement specific measures to provide targeted support to help them play a more prominent role in the process of smart and inclusive growth;

30. Is concerned that the achievement of milestones and targets lags behind the indicative timetable provided in the NRRPs, and that the pace of progress is uneven across Member States; regrets the time lag between the fulfilment of milestones and targets and the implementation of projects; highlights that the RRF will only achieve its long-term and short-term potential if the reform and investment components, respectively, are properly implemented; welcomes the fact that, following a slow start, RRF implementation has picked up since the second half of 2023 but significant delays affecting key reforms and investments still persist and have been attributed to various factors, including the revisions linked to the inclusion of REPowerEU, mounting inflation, the insufficient administrative capacity of Member States, in particular the smaller Member States, uncertainties regarding specific RRF implementation rules, high energy costs, supply shortages and an underestimation of the time needed to implement measures; notes that the postponement of key implementation deadlines by some governments to 2026 raises concerns about the capacity of some Member States to fully absorb the allocated funds within the set timeframe of the RRF; stresses the importance of maintaining a realistic and effective implementation schedule to prevent the risk of incomplete projects and missed opportunities for structural improvements; calls on the Commission to ensure that administrative bottlenecks are urgently addressed;

31. Recalls the modification of the RRF Regulation through the inclusion of the REPowerEU chapter; stresses the importance of the REPowerEU chapters in NRRPs and calls on the Member States to prioritise mature projects and implement their NRRPs more quickly, both in terms of reforms and investments, and, where necessary, to adjust NRRPs in line with the RRF’s objectives, without undermining the overall balance and level of ambition of the NRRPs, in order to respond to challenges stemming from geopolitical events and to tackle current realities on the ground;

32. Highlights the fact that the RRF could have helped to mitigate the effects of the current EU-wide housing crisis; regrets that some Member States did not make use of this opportunity and stresses the importance for the Member States to accelerate investments in availability and affordability of housing;

33. Highlights the role of ‘super milestones’ in protecting the EU’s financial interests against rule of law deficiencies and in ensuring the full implementation of the requirements under Article 22 of the RRF Regulation; welcomes the fact that all but one Member State have satisfactorily fulfilled their ‘super milestones’; recalls that the Commission must recover any pre-financing that has not been netted against regular payment requests by the end of the RRF;

34. Notes the high administrative burden and complexity brought by the RRF; stresses the considerable efforts required at national level to implement the RRF in parallel with structural funds; notes that between 2021 and 2024 the demand-driven Technical Support Instrument supported more than 500 RRF-related reforms in the Member States, directly or indirectly related to the preparation, amendment, revision and implementation of the NRRPs; takes note of the Commission guidance of July 2024 with simplifications and clarifications to streamline RRF implementation but expects the Commission to act swiftly on its promise to cut the administrative burden by 25 %; urges the Commission to give clear and targeted technical support to the Member States, allowing them to develop efficient administrative capacity to implement the milestones and targets; calls on the Commission to decrease the level of complexity of EU public procurement rules which apply to higher-value contracts;

35. Expresses concern over the complexity of application procedures for RRF funding, particularly for SMEs and non-governmental organisations, which require external consultancy services even for small grants; emphasises that such bureaucratic obstacles contradict the original objectives of the RRF, which aimed to provide rapid and direct financial support; calls for an urgent simplification of application and reporting requirements, particularly for smaller beneficiaries, to maximise the absorption and impact of funds and to assist with their contribution to the green and digital transitions;

36. Believes that implementation delays underscore the risk that measures for which RRF funding has been paid will not be completed by the 2026 payment deadline; welcomes the Commission’s statement at the Recovery and Resilience Dialogue (RRD) of 16 September 2024 that it will not reimburse non-implemented projects; considers it a shortcoming that RRF funds paid for milestones and targets assessed as fulfilled cannot be recovered if related measures are not eventually completed; encourages the Commission to take into account the ECA’s recommendations related to this and to assess, in cooperation with the Member States, the measures most at risk of not being completed by 31 August 2026; stresses the importance of monitoring these measures, facilitating timely follow-up and working towards solutions to overcome delays;

37. Notes with concern that the remaining implementation timeframe of the RRF is too short for the implementation of many innovative projects; further notes that innovative projects, by definition, are more difficult to plan and more likely to encounter obstacles during implementation, making them unsuited to the RRF’s strict deadlines; urges the Commission to create future programmes that are flexible enough to give proper answers in changing circumstances and that at the same time guarantee a certain degree of predictability;

38. Notes that some milestones and targets may be no longer achievable because of objective circumstances; stresses that any NRRP revisions should be made in accordance with the RRF Regulation, including the applicable deadlines, and should not entail backtracking on reforms, commitments or lower quality projects but should maintain the overall ambition and the efficiency of public spending;

39. Is concerned about the Commission’s uneven assessment of NRRPs, which has led to double standards in the application of the Regulation; is further concerned about the uneven and different definition of milestones and targets from one NRRP to the other, as consistently reported by the ECA;

40. Highlights that the duration of the Commission’s assessment of payment requests by Member States differs considerably among the Member States and stresses the need for more transparency from the Commission; urges the Commission to accelerate its assessments and to ensure the equal treatment of the Member States; highlights the need to ensure a level playing field across the EU for measures and indicators that are used to assess all RRF projects;

41. Urges the Member States to increase their efforts to address administrative bottlenecks and provide sufficient administrative capacity to accelerate RRF implementation in view of the 2026 deadline and to avoid concentrating RRF projects in more developed regions and capitals by enabling RRF funds to flow into projects in the most vulnerable regions, thereby serving the RRF’s objective to enhance the EU’s social, territorial and economic cohesion; emphasises the importance of fair regional distribution within the NRRPs while ensuring that RRF funds are allocated based on economic and social impact, feasibility and long-term benefits;

42. Calls for an 18-month extension of mature RRF projects through an amendment of the RRF Regulation by co-decision, if needed; emphasises that the envisaged extension of projects will be conducted by the Commission based on objective, clear and fair benchmarks; welcomes the possibility of establishing a targeted and performance-based prioritisation and transfer system after the 2026 deadline in order to allow for the finalisation of ongoing projects through other funding schemes, including the European Investment Fund and a possible new European competitiveness fund; urges the Commission to present a strategy to address the huge demand for public investment beyond 2026 without compromising budgetary resources in other critical areas;

43. Calls for an evaluation of how this framework could enable targeted investments in EU defence supply chains, strategic stockpiles and defence innovation, ensuring alignment with broader European security objectives;

44. Is concerned that some Member States might choose to forego parts of the amounts or entire amounts associated with their last payment request, thus avoiding the fulfilment of the last milestones and targets;

Transparency, monitoring and control

45. Takes note of the fact that the Commission had planned to conduct 112 RRF audits in all Member States in 2024; reminds the Commission of its obligation, in accordance with Article 24(3) of the RRF Regulation, to recover funding in case of incorrect disbursements or reversals of measures;

46. Notes that the Commission relies on its own methodologies when calculating partial payments and suspensions of funds; regrets that these methodologies were only developed two years after the start of the RRF implementation and without the consultation of Parliament;

47. Welcomes the extensive work of the ECA in relation to the RRF and deems it important to thoroughly assess its findings, in particular its findings that milestones and targets are often rather vague and output-oriented and are therefore not fit to measure results and impacts, and its findings regarding the risks of double funding resulting from overlaps with other policies; notes that the Commission has accepted many but not all of the ECA’s recommendations; stresses that weaknesses in financial controls, as highlighted by the ECA, must be urgently addressed to prevent double funding, cost inefficiencies, and mismanagement of EU funds; calls for enhanced transparency and for the full consideration of the ECA’s recommendations without adding unnecessary administrative burden;

48. Notes that the ECA’s audits revealed several cases in which funding had been disbursed but the requirements related to the fulfilment of corresponding milestones and targets had not been adequately met; further notes that the Commission framework for assessing the ‘satisfactory fulfilment’ of the relevant milestones and targets contains discretionary elements, such as ‘minimal deviation from a requirement’ or ‘proportional delays’, and that the methodology for the determination of partial payments does not provide an explanation for the values chosen as coefficients, thereby leaving room for interpretation; asks the Commission to provide Parliament with further clarification;

49. Insists that, as a rule, measures already included in other national plans benefiting from EU funding (e.g. cohesion, agriculture, etc.) should not be included in NRRPs, even if they do not incur any costs; urges the Commission to remain vigilant and proactive in identifying any potential situation of double funding in particular in regard to the different implementation models of the RRF and other EU funding instruments;

50. Regrets the lack of a proper RRF audit trail and the persistent lack of transparency despite the bi-annual reporting requirement for Member States on the 100 largest final recipients, which was introduced into REPowerEU upon Parliament’s request; regrets the delays in reporting by some Member States and the limited informative value of the information provided, which ultimately prevents compliance checks by the Commission or the ECA; reiterates its call for the lists of the largest final recipients for each Member State to be regularly updated and published on the RRF Scoreboard and to include information on the economic operators involved, including contractors and sub-contractors, and their beneficial owners, and not simply ministries or other government bodies or state companies; further regrets that the current definition of ‘final recipient’ leaves room for interpretation, resulting in different final beneficiaries for similar measures among Member States; calls on the Commission, in this context, to ensure a common understanding of what constitutes a ‘final recipient’ so that this can be applied consistently;

51. Is concerned about persistent weaknesses in national reporting and control mechanisms, due in part to absorption pressure affecting the capacity to detect ineligible expenditure and due to the complexity of the audit and control procedures, which created uncertainty in the Member States and an overload of administrative procedures; calls on the Commission to provide assurance on whether Member States’ control systems function adequately and to check the compliance of RRF-funded investment projects with EU and national rules; calls for payments to be reduced and, where appropriate, amounts to be recovered in accordance with Article 22 of the RRF Regulation, should weaknesses persist in the national control systems; regrets the reliance on manual cross-checks and self-declarations by recipients of EU funds in the absence of interoperable IT tools and harmonised standards, despite the existence of tools such as the Early Detection and Exclusion System and ARACHNE, whose use is currently not mandatory, thereby risking that expenditure is declared twice; recalls, in this regard, the reluctance of the Member States to make progress in developing the relevant IT tools in a timely manner;

52. Shares the view of the ECA that the FNLC model does not preclude reporting on actual costs; notes that having clear insights on costs also facilitates the work of control and oversight bodies, as well as the EPPO and the European Anti-Fraud Office (OLAF), and enables enhanced public scrutiny;

53. Reiterates the role of the RRF Scoreboard in providing information for citizens on the overall progress in the implementation of NRRPs; underlines the importance of the Scoreboard in strengthening transparency and calls on the Commission to increase the level of transparency and data visualisation in the Scoreboard;

54. Recalls that the reporting on the progress of implementation in the RRF Scoreboard is based on information provided by the Member States on a bi-annual basis;

55. Highlights the important role of the EPPO and OLAF in protecting the EU’s financial interests; welcomes the fact that EPPO investigations into RRF-related fraud and corruption cases have led to several arrests, indictments and seizures of RRF funds; recalls that the EPPO was handling 307 active cases related to the RRF in 2024, corresponding to about 17 % of all expenditure fraud investigations and causing an estimated damage to the EU’s financial interests of EUR 2.8 billion; expects the number of investigations to grow as RRF implementation advances; calls on the Commission to look into the management declarations of the Member States in terms of their reporting of detected fraud and the remedial measures taken;

Role of the European Parliament

56. Reiterates the importance of Parliament’s role in scrutinising and monitoring the implementation of the RRF and in holding the Commission accountable; highlights Parliament’s input provided through various channels, in particular through various plenary debates, parliamentary resolutions, bi-monthly RRD meetings with the responsible Commissioners, over 30 meetings of the standing working group on the scrutiny of the RRF, numerous parliamentary questions, the annual discharge procedure of the Commission and the regular flow of information and ad hoc requests for information from the Commission; regrets that the model of using milestones and targets to trigger disbursement was not accompanied by adequate budgetary control mechanisms, resulting in a diminished role for Parliament compared to its scrutiny of MFF spending;

57. Recalls Parliament’s rights as laid down in Article 25 of the RRF Regulation, in particular the right to simultaneously receive from the Commission information that it transmits to the Council or any of its preparatory bodies in the context of the RRF Regulation or its implementation, as well as an overview of its preliminary findings concerning the satisfactory fulfilment of the relevant milestones and targets included in the NRRPs; encourages the sharing of relevant outcomes of discussions held in Council preparatory bodies with the competent parliamentary committees;

58. Recalls further the right of Parliament’s competent committees to invite the Commission to provide information on the state of play of the assessment of the NRRPs in the context of the RRD meetings;

59. Regrets the fact that Parliament has no role in the design of NRRPs and is not consulted on payment requests; criticises furthermore the fact that Parliament has not been provided with a clear and traceable overview of the implementation status of projects and payments; expects to be informed about the context of NRRP revisions in order to make its own assessment of the revisions and to have an enhanced role in possible future instruments based on the RRF experience;

Stakeholder involvement

60. Regrets the insufficient involvement of local and regional authorities (LRAs), civil society organisations, social partners, national parliaments and other relevant stakeholders in the design, revision or implementation of NRRPs leading to worse policy outcomes, as well as limited ownership; regrets that in the design and implementation of the NRRPs, some Member States have clearly favoured some LRAs or stakeholders to the detriment of others; recalls that the participation of LRAs, national authorities and those responsible for developing these policies is crucial for the success of the RRF, as stated in Article 28 of the RRF Regulation; recalls that Parliament supported a binding provision in the RRF to establish a multilevel dialogue to engage relevant stakeholders and discuss the preparation and implementation of NRRPs with them, with a clear consultation period; calls, therefore, for the maximum possible stakeholder involvement in the implementation of NRRPs, in accordance with the national legal framework and based on clear and transparent principles;

61. Reiterates the need for regular interaction between national coordinating authorities and national stakeholders involved in the monitoring of the implementation of the NRRPs, in line with the principle of transparency and accountability; stresses that more regular and public communication from the national coordinating authorities is needed to ensure that updated information about the progress of the implementation of NRRPs is made available;

62. Stresses that decisions should be made at the level that is most appropriate; is convinced that the application of the partnership principle and a stronger involvement of LRAs could make project implementation more efficient, reduce disparities within Member States and result in more and better quality measures with a cross-border and multi-country dimension;

63. Believes that valuable lessons can be drawn from the RRF to be reflected in the design of performance-based instruments in the next MFF, in particular in the light of the EU’s competitiveness and simplification agendas;

Lessons for the future

64. Believes that the combination of reforms and investments has proved successful but that a clearer link is needed between the two; highlights the importance of aligning any funding with the objectives of the instrument and disbursing it in line with the progress made towards them; insists that the level of ambition of NRRPs should not be lowered but should be commensurate with the RRF timeline to ensure their successful implementation;

65. Is convinced, as highlighted by the Draghi report, that boosting EU competitiveness, decarbonising the EU’s economy and making it more circular and resource-efficient, as well as closing the skills gap, creating quality jobs and enhancing the EU’s innovation capacity, will be central priorities beyond 2026; is concerned that a sizeable funding gap will arise after the RRF ceases to operate at the end of 2026, notably for public investment in common European priorities, since financial resources from national budgets vary significantly among Member States; highlights the need to use the lessons learned from the RRF to better leverage public and private investments with a view to addressing the financing gap in European objectives and transitions, which the Draghi report estimates at over EUR 800 billion annually, while ensuring seamless continuity of investments in common European goods;

66. Welcomes the enhanced use of financial instruments made possible by the option to channel RRF funds towards the Member States’ compartment of InvestEU;

67. Urges the Commission to apply the lessons learned and the ECA’s observations, and to ensure that future performance-based instruments are well-targeted, aligned with the aim of financing European public goods and prioritising the addressing of clearly defined strategic challenges, economic sustainability and competitiveness; calls for it to be ensured that all future instruments are designed to measure not only inputs or short-term outputs and progress but also results in terms of long-term impacts backed by outcomes;

68. Calls on the Commission to conduct an independent evaluation and to report on the RRF impact on private investments at aggregate EU level, in particular on its potential crowding-out effect on private investments and its determinants; calls further for objective and clear analyses from the Commission on how the implementation of reforms and investments within the NRRPs affects the economies of the individual Member States, with special regard to smart, sustainable and inclusive growth; urges the Commission to take the lessons learned from these analyses and from the ECA’s observations on the RRF implementation into account when drawing up its proposals for the next programming period;

69. Underlines that all EU-funded investments and reforms should be coordinated and coherent with strategic planning at national level and should focus on projects with a clear European added value; underlines the need for a spending target for cross-border and multi-country investments; calls on the Commission to develop a credible methodology to assess the cross-border and multi-country dimensions of EU funded projects;

70. Highlights that meaningful social and territorial dialogues with a high level of involvement of LRAs, social partners, civil society organisations and national parliaments within the national legal framework are essential for national ownership, successful implementation and democratic accountability; expresses concern over the insufficient involvement of all relevant stakeholders in the implementation and oversight of RRF-funded initiatives; stresses in particular that regions and city councils cannot be mere recipients of decisions, without being given the opportunity to have a say on reforms and investments that truly transform their territories;

71. Believes that it is essential to adopt differentiated strategies that recognise the cultural diversity of the various regions and enhance their economic and social cohesion instead of applying a homogeneous or one-size-fits-all approach that could be to the detriment of the less developed regions; calls, therefore, for dialogues with stakeholders to be strengthened and more diligently employed as they could inspire future initiatives and mechanisms in the EU and its Member States;

72. Underlines the requirement of the RRF Regulation to publicly display information about the origin of funding for projects funded by the EU to ensure buy-in from European citizens;

73. Highlights that the RRD meetings have been an important tool in enhancing transparency and accountability, which are crucial for the optimal implementation of the RRF;

74. Reiterates that further efforts are required to improve the transparency and traceability of the use of EU funds; stresses the need to ensure that data that is relevant for performance measurement is available and that information on performance is presented in a better and more transparent manner; stresses that the feedback mechanism between performance information and programme design or adjustment should be enhanced;

75. Considers that better training and capacity-building across all regions and authorities involved, in particular at national level, could have accelerated the RRF’s implementation and enabled the implementing authorities to better adapt to the performance-based nature of the RRF; considers that the Commission could have assisted Member States more at the planning stage and provided earlier implementation guidance, in particular with a view to strengthening their audit and control systems and the cross-border dimension of the RRF;

76. Highlights the importance of mitigating the risk of double funding; suggests the deployment of an integrated and interoperable IT and data mining system and the development of clear standards for datasets to be applied across Member States, with a view to allowing comprehensive and automated expenditure tracking; calls for improved coordination mechanisms that define clear responsibilities among the bodies involved in the implementation of the various EU and national programmes, while avoiding unnecessary bureaucratic complexity and ensuring an efficient allocation of funds; encourages the integration of advanced data analytics and AI tools to enhance performance tracking, evaluation and reporting to alleviate manual workload and to streamline reporting processes; underlines that such progress can only happen if there is also operational support to digitalise administrations;

77. Strongly urges the Commission and the Member States to ensure that any type of EU FNLC or EU funding that is performance based complies with EU and national rules, ultimately protecting the financial interests of the EU; reiterates the accountability and responsibility of the Commission and the Member States to ensure the legality and the regularity of EU funding, as well as the respect of sound financial management principles;

78. Considers that the role of Parliament in the monitoring of the RRF should be further enhanced;

79. Calls for future performance-based instruments to have a single audit trail to trace budget contributions to the projects funded; underlines the need for project-level auditing to mitigate reputational risks in the eyes of the general public and to facilitate the recovery of funds in case measures are reversed; underlines the need to reduce administrative bottlenecks and burden;

80. Demands that any possible future performance-based programmes make clearer links between the milestones and targets and the actual projects being implemented; stresses that there should be less of a delay between the fulfilment of milestones and the implementation of projects;

81. Reiterates its call for an open platform which contains data on all projects, final recipients and the regional distribution of funding, thereby facilitating auditing and democratic oversight;

82. Stresses that any possible future budgetary decisions on EU borrowing should respect the unity of the budget and Parliament’s role as part of the budgetary authority; highlights the risks of cost overruns for the repayment of debt, resulting inter alia from volatile interest rates; deems it important to ensure from the outset that sufficient funding is available to cover these costs without presenting a detriment to other programmes or political priorities;

83. Invites the Commission and the Member States to closely assess and learn from instruments and tools such as the RRF, in order to maximise the efficiency and impact of EU funding, investments and reforms, streamline policy objectives, improve the collaboration of the institutions and stakeholders at national and European level, and increase national ownership;

84. Notes the declared intention of the Commission to draw on the RRF experience when designing its proposals for the post-2027 EU funding programmes, due later this year; acknowledges that the independent ex post evaluation will come too late to feed into the process leading up to the next programming period, but expects the Commission and the co-legislators to take due account of the lessons learned from the RRF and of the recommendations of relevant stakeholders, in particular LRA, civil society organisations and social partners; believes that, as the EU plans for future economic resilience, there is also a need to further mobilise private investment, strengthen capital markets and ensure that public spending remains fiscally responsible and strategically targeted to make the EU more resilient and sovereign in an ever more conflictual geopolitical context;

85. Instructs its President to forward this resolution to the Council, the Commission, and to the governments and parliaments of the Member States.

EXPLANATORY STATEMENT

Background

The Recovery and Resilience Facility (RRF), which was set up in 2021 as part of the EU’s unprecedented recovery programme NextGenerationEU and is set to end in 2026, provides significant financial support to the Member States in exchange for pre-agreed public investments and reforms in line with European objectives, in particular the digital and green transitions. Since the start of RRF implementation, the European Parliament has been paying particular attention to the democratic oversight and monitoring of the RRF, with the aims of verifying that the RRF delivers results and ensuring greater transparency and accountability on the side of the Member States and the Commission.

Aim and timing of the report

Since the RRF has entered the second half of its implementation period and over 40 % of the funds have been disbursed, it is an opportune moment for Parliament to assess the performance and the impact of the Facility, to propose improvements for the remainder of its implementation, and to draw lessons for the future, in particular in view of the forthcoming discussions on the post-2027 Multiannual Financial framework.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEURS HAVE RECEIVED INPUT

ENTITIES OR PERSONS FROM WHOM RAPPORTEUR VICTOR NEGRESCU HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he received input from the following entities or persons in the preparation of the report, prior to the adoption thereof in committee:

Entity and/or person
Europuls - Centre for European Expertise
Asociația Bankwatch România
European Commission, DG ECFIN - Unit.R.1
Foundation for European Progressive Studies

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the concerned natural persons the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

ENTITIES OR PERSONS FROM WHOM RAPPORTEUR SIEGFRIED MUREŞAN HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he received input from the following entities or persons in the preparation of the report, prior to the adoption thereof in committee:

Entity and/or person
Europuls - Centre for European Expertise

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the concerned natural persons the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

8.4.2025

OPINION OF THE COMMITTEE ON BUDGETARY CONTROL

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the implementation report on the Recovery and Resilience Facility

(2024/2085(INI))

Rapporteur for opinion: Carla Tavares

AMENDMENTS

The Committee on Budgetary Control submits the following to the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible:

Amendment 1

Motion for a resolution

Recital A

Motion for a resolutionAmendment
A. whereas reforms and investments under the Recovery and Resilience Facility (RRF) help to make the EU more resilient and less dependent by diversifying key supply chains and thereby strengthening the strategic autonomy of the EU; whereas reforms and investments under the RRF also generate European added value;A. whereas reforms and investments under the Recovery and Resilience Facility (RRF) help to make the EU more resilient and less dependent by diversifying key supply chains and thereby strengthening the strategic autonomy of the EU; whereas the aim of reforms and investments under the RRF is also to generate European added value;

Amendment 2

Motion for a resolution

Recital C a (new)

Motion for a resolutionAmendment
Ca. whereas to this day, no repayment plan has been made to deal with the common European debt;

Amendment 3

Motion for a resolution

Recital C b (new)

Motion for a resolutionAmendment
Cb. whereas the ECA, in its annual report on budgetary and financial management for 2023, warned that increasing European debt was placing growing pressure on the Union’s budget;

Amendment 4

Motion for a resolution

Paragraph 1

Motion for a resolutionAmendment
1. Highlights the fact that the RRF is an unprecedented instrument of solidarity in the light of two unprecedented crises and a cornerstone of the NGEU instrument, ending in 2026; highlights the stabilising effect of the RRF for Member States at a time of great economic uncertainty, as it mitigates negative economic and social consequences and supports governments by contributing to the implementation of the European Pillar of Social Rights;1. Notes that the RRF is an unprecedented temporary instrument of solidarity in the light of two unprecedented crises and a cornerstone of the NGEU instrument, ending in 2026; highlights the stabilising effect of the RRF for Member States at a time of great economic uncertainty, as it mitigates, to a certain extent, short-term negative economic and social consequences and supports citizens and businesses;

Amendment 5

Motion for a resolution

Paragraph 2

Motion for a resolutionAmendment
2. Welcomes the fact that the RRF has provided temporary additional fiscal space since the pandemic and contributed to the prevention of divergences between Member States with diverse fiscal space; notes the Commission finding that the RRF has led to a sustained increase in investments across the EU and that the Commission expects the RRF to have a lasting impact across the EU beyond 2026 given its synergies with other EU funds;2. Notes that the RRF has provided temporary additional fiscal space since the pandemic; notes the Commission assessment that the RRF has led to a sustained increase in investments across the EU and that the Commission expects the RRF to have a lasting impact across the EU beyond 2026 given its synergies with other EU funds;

Amendment 6

Motion for a resolution

Paragraph 3

Motion for a resolutionAmendment
3. Takes note of the Commission’s projection in 2024 concerning the potential of NGEU’s impact on the EU’s real gross domestic product (GDP) by 2026, which is significantly lower than its simulation in 2020 (1.4 % compared with 2.3 %) and of the estimation that NGEU could lead to a sizeable, short-run increase in EU employment by up to 0.8 %; notes with satisfaction that long-term benefits of the RRF on GDP could be three to six times bigger than the NGEU budget disbursed, depending on the productivity effects of RRF investment; highlights, however, the difficulty of quantifying the precise social and economic impact of the RRF, as the impact of reforms only becomes clear following a delay; notes the Commission’s finding that approximately half of the expected increase in public investment between 2019 and 2025 is related to investment financed by the EU budget, particularly by the RRF;3. Takes note of the Commission’s projection in 2024 concerning the potential of NGEU’s impact on the EU’s real gross domestic product (GDP) by 2026, which is significantly lower than its simulation in 2020 (1.4 % compared with 2.3 %) and of the estimation that NGEU could lead to a sizeable, short-run increase in EU employment by up to 0.8 %; notes, despite the positive statistical assessments, the difficulty of quantifying the precise social and economic impact of the RRF, as the impact of reforms only becomes clear following a delay; notes the Commission’s finding that approximately half of the expected increase in public investment between 2019 and 2025 is related to investment financed by the EU budget, particularly by the RRF; recalls the importance of improving and simplifying the methodology to enable the performance and impact of the reforms introduced and investments made to be properly quantified, particularly in view of the challenges ahead;

Amendment 7

Motion for a resolution

Paragraph 4

Motion for a resolutionAmendment
4. Notes that the RRF has incentivised the implementation of some reforms included in the country-specific recommendations made in the context of the European Semester and that the RRF Scoreboard is used to monitor the progress made towards achieving milestones and targets, as well as compliance with horizontal principles, and in particular the six pillars, namely the green transition, the digital transformation, smart, sustainable and inclusive growth, social and territorial cohesion, health, economic, social and institutional resilience, and policies for the next generation, children and young people, including education;4. Notes that the RRF has incentivised the implementation of some reforms included in the country-specific recommendations made in the context of the European Semester and that the RRF Scoreboard is used to monitor the progress made towards achieving milestones and targets, as well as compliance with horizontal principles, and in particular the six pillars, namely the green transition, the digital transformation, smart, sustainable and inclusive growth, social and territorial cohesion, health, economic, social and institutional resilience, and policies for the next generation, children and young people, including education; highlights that the rate of ‘fully implemented’ country-specific recommendations nevertheless dropped from 18.1 % in the period 2011-2018 to 13.9 % in the period 2019-2023;

Amendment 8

Motion for a resolution

Paragraph 6

Motion for a resolutionAmendment
6. Welcomes the fact that the RRF provides support for both reforms and investments in the Member States, but notes that a lot still remains to be done; is concerned that the short period for the remaining RRF implementation will not allow for the implementation of several planned important reforms and large investments;6. Notes the fact that the RRF aims to provide support for both reforms and investments in the Member States, but notes that a lot still remains to be done; is concerned that the short period for the remaining RRF implementation will not allow for the implementation of several planned important reforms and large investments, in particular because many important reforms and investments are to be finalised towards the end of the RRF;

Amendment 9

Motion for a resolution

Paragraph 7

Motion for a resolutionAmendment
7. Highlights that prioritising RRF implementation, the lack of administrative capacity in many Member States and challenges posed by global supply chains have contributed to the delayed implementation of cohesion policy; recalls the need to respect the additionality principle and appeals against the crowding out or replacement of cohesion policy by the RRF or other temporary instruments;7. Highlights that prioritising RRF implementation, the persistent lack of administrative capacity in many Member States and challenges posed by global supply chains have contributed to the delayed implementation of cohesion policy; recalls the need to respect the additionality principle and appeals against the crowding out or replacement of cohesion policy by the RRF or other temporary instruments; fears that some Members States could see such a replacement as a good opportunity to access funds more easily due to the fact that cohesion policy is managed under shared management while the RRF is managed under direct management;

Amendment 10

Motion for a resolution

Paragraph 11

Motion for a resolutionAmendment
11. Recalls the application of the ‘do no significant harm’ (DNSH) principle for all reforms and investments supported by the RRF, with a targeted derogation under REPowerEU for energy infrastructure and facilities needed to meet immediate security of supply needs; encourages the Commission to assess the feasibility of a more uniform interpretation of the DNSH principle between the RRF and the EU taxonomy for sustainable activities, while taking into account the specificities of the RRF as a public expenditure programme;11. Recalls the application of the ‘do no significant harm’ (DNSH) principle for all reforms and investments supported by the RRF, with a targeted derogation under REPowerEU for energy infrastructure and facilities needed to meet immediate security of supply needs; encourages the Commission to assess the feasibility of a more uniform interpretation of the DNSH principle between the RRF and the EU taxonomy where relevant, ensuring that funded projects contribute meaningfully to climate adaptation; calls for stricter ex ante and ex post assessments to prevent greenwashing and ensure compliance; recalls that the ECA has highlighted1a a lack of key performance indicators and a lack of real environmental results;
_________________
1a Special Report 15/2024: Climate adaptation in the EU – Action not keeping up with ambition.

Amendment 11

Motion for a resolution

Paragraph 12

Motion for a resolutionAmendment
12. Stresses that the RRF is the first major performance-based instrument at EU level which is exclusively based on financing not linked to costs (FNLC); regrets that the Council did not agree to insert specific rules in the Financial Regulation to address the risks of this delivery model, such as double funding;12. Stresses that the RRF is the first major performance-based instrument at EU level which is exclusively based on financing not linked to costs (FNLC); regrets that the Council did not agree to insert specific rules in the Financial Regulation to address the risks of this delivery model, such as the unclear link between disbursed funds and implemented measures, transparency and control issues or the issues related to the increased risk of double funding; regrets that the obligation for Member States to disclose the name of the largest final beneficiaries has not been correctly implemented, and that there has been no obligation to use Arachne or to inform the Commission about irregularities; regrets that the model of using milestones and targets to trigger disbursement has not been accompanied by adequate budgetary control mechanisms, resulting in a diminished role for Parliament compared to its scrutiny of MFF spending; notes that this affects the ECA’s ability to provide reasonable assurance on the protection of financial interests, particularly concerning the eligibility of costs; regrets that the current system fails to provide the necessary data to inform decision-making and take corrective measures from a cost-benefit perspective;

Amendment 12

Motion for a resolution

Paragraph 13

Motion for a resolutionAmendment
13. Notes that only 13 Member States have requested loans and that EUR 92 billion of the EUR 385.8 billion available will remain unused since this amount was not committed by the deadline of 31 December 2023; takes note of the fact that loans were attractive for Member States that faced higher borrowing costs on the financial markets or that sought to compensate for a reduction in RRF grants; recalls that Parliament had advocated for a higher share of grants than loans and considers that a political discussion is needed on the use of unspent funds in the light of tight public budgets;13. Notes that only 13 Member States have requested loans and that EUR 92 billion of the EUR 385.8 billion available will remain unused since this amount was not committed by the deadline of 31 December 2023; takes note of the fact that loans were attractive for Member States that faced higher borrowing costs on the financial markets or that sought to compensate for a reduction in RRF grants; recalls that Parliament had advocated for a higher share of grants than loans and; considers that a political discussion is needed on the use of unspent funds in the light of tight public budgets; calls for a detailed, long-term NGEU repayment plan in the post-2027 MFF;

Amendment 13

Motion for a resolution

Paragraph 14

Motion for a resolutionAmendment
14. Recalls the legal obligation to ensure full repayment of NGEU expenditure by 31 December 2058 at the latest; reminds the Council and the Commission of their legal commitment under the interinstitutional agreement concluded in 2020 to ensure a viable path to refinancing NGEU debt, including through sufficient proceeds from new own resources introduced after 2021 without any undue reduction in programme expenditure or investment instruments under the MFF; deplores the lack of progress made in this regard and urges the Council to adopt new own resources without delay;14. Recalls the legal obligation to ensure full repayment of NGEU expenditure by 31 December 2058 at the latest; reminds the Council and the Commission of their legal commitment under the interinstitutional agreement concluded in 2020 to ensure a viable path to refinancing NGEU debt, including through sufficient proceeds from new own resources introduced after 2021 without any undue reduction in programme expenditure or investment instruments under the MFF; greatly regrets the lack of progress made in this regard, which raises serious concerns about the viability of the repayment of the debt incurred under NGEU, and urges the Council to adopt new own resources without delay as a matter of urgency; urges the Commission, furthermore, to continue efforts to identify and implement additional genuine new own resources beyond those currently outlined in the interinstitutional agreement and in line with EU policy priorities, in order to ensure a sustainable approach to financing key EU objectives and to cover the high spending needs, both in terms of funding new priorities, but also in order to ensure the repayment of the debt;

Amendment 14

Motion for a resolution

Paragraph 15

Motion for a resolutionAmendment
15. Notes the Commission’s estimation that between 2024 and 2027, NGEU borrowing costs will exceed expectations by EUR 17 billion to EUR 27 billion; recalls that recourse to special instruments had to be made in the last three budgetary procedures to cover EURI instrument costs;15. Notes with concern the Commission’s estimation that between 2024 and 2027, NGEU borrowing costs will exceed expectations by EUR 17 billion to EUR 27 billion; recalls that recourse to special instruments had to be made in the last three budgetary procedures to cover EURI instrument costs;

Amendment 15

Motion for a resolution

Paragraph 17

Motion for a resolutionAmendment
17. Notes that 47 % of the available RRF funds had been disbursed by 31 December 2024, with grants reaching 55 % and loans 37 %; is concerned, however, about the ECA’s finding that only 50 % of disbursed funds had reached final beneficiaries in 15 out of 22 Member States by October 2023;17. Notes that 47 % of the available RRF funds had been disbursed by 31 December 2024, with grants reaching 55 % and loans 37 %; is concerned, however, about the ECA’s finding that only 50 % of disbursed funds had reached final beneficiaries in 15 out of 22 Member States by October 2023; notes that the implementation of investments is contingent upon the completion of necessary reforms; expects the second half of the RRF’s implementation period to be more challenging for Member States because of a shift from reforms to investments and the high proportion of measures to be completed in the last year; is of the opinion that the significant differences between the scheduled calendar of payment requests and the actual transmission of these requests by the Member States to the Commission shows that RRF implementation is behind schedule;

Amendment 16

Motion for a resolution

Paragraph 17 a (new)

Motion for a resolutionAmendment
17a. Recalls that RRF funds must not be used to replace recurring budgetary expenditure apart from in duly justified cases; is preoccupied, furthermore, by the ECA’s findings that some milestones and targets that substituted recurring national budgetary expenditure have not been adequately justified in the NRRPs;

Amendment 17

Motion for a resolution

Paragraph 18

Motion for a resolutionAmendment
18. Welcomes the fact that all Member States have surpassed the targets for the green (37 %) and the digital transitions (20 %), with average expenditure towards climate and digital objectives of the RRF as a whole standing at 42 % and 26 % respectively; notes that the ECA has cast doubt on how the implementation of RRF measures has contributed to the green transition and has recommended improvements to the methodologies used to estimate the climate impact; highlights the fact that the same methodological deficiencies exist across all pillars of the RRF;18. Welcomes the fact that all Member States have surpassed the targets for the green (37 %) and the digital transitions (20 %), with average expenditure towards climate and digital objectives of the RRF as a whole standing at 42 % and 26 % respectively; underlines with concern that the ECA has cast doubt on how the implementation of RRF measures has contributed to the green transition and has recommended improvements to the methodologies used to estimate the climate impact; highlights the fact that the same methodological deficiencies exist across all pillars of the RRF; regrets the ECA’s findings that some investments monitored, such as some in the ‘water scarcity’ sector, were not in line with the EU adaptation strategy and increased vulnerabilities instead of reducing them;

Amendment 18

Motion for a resolution

Paragraph 21

Motion for a resolutionAmendment
21. Notes that the achievement of milestones and targets lags behind the indicative timetable provided in the NRRPs, and that the pace of progress is uneven across Member States; welcomes the fact that, following a slow start, RRF implementation has picked up since the second half of 2023 but delays still persist and have been attributed to various factors, including the revisions linked to the inclusion of REPowerEU, mounting inflation, the insufficient administrative capacity of Member States, uncertainties regarding specific RRF implementation rules, high energy costs, supply shortages and an underestimation of the time needed to implement measures;21. Regrets that the achievement of milestones and targets lags behind the indicative timetable provided in the NRRPs, and that the pace of progress is uneven across Member States; welcomes the fact that, following a slow start, RRF implementation has picked up since the second half of 2023 but delays still persist and have been attributed to various factors, including the revisions linked to the inclusion of REPowerEU, mounting inflation, the insufficient administrative capacity of Member States, uncertainties regarding specific RRF implementation rules, high energy costs, supply shortages and an underestimation of the time needed to implement measures;

Amendment 19

Motion for a resolution

Paragraph 23

Motion for a resolutionAmendment
23. Highlights the role of ‘super milestones’ in protecting the EU’s financial interests against rule of law deficiencies; welcomes the fact that all but one Member State have satisfactorily fulfilled their ‘super milestones’; recalls that the Commission must recover any pre-financing that has not been netted against regular payment requests by the end of the RRF;23. Highlights the role of ‘super milestones’ in protecting the EU’s financial interests against rule of law deficiencies; notes the fact that one Member State has still not satisfactorily fulfilled its ‘super milestones’; further notes with regret that the Commission has in the past prematurely released funds blocked under the RRF and Common Provisions Regulation before the necessary reforms had entered into force, thereby not fulfilling the conditions linked to the release of these funds; warns that this premature release undermines the credibility of the Commission’s role as guardian of the Treaties and might set a dangerous precedent that should not be repeated in future cases; recalls that the Commission must recover any pre-financing that has not been netted against regular payment requests by the end of the RRF;

Amendment 20

Motion for a resolution

Paragraph 24

Motion for a resolutionAmendment
24. Notes the high administrative burden and complexity brought by the RRF; stresses the considerable efforts required at national level to implement the RRF in parallel with structural funds; notes that between 2021 and 2024 the Technical Support Instrument supported more than 500 RRF-related reforms in the Member States, directly or indirectly related to the preparation, amendment, revision and implementation of the NRRPs; takes note of the Commission guidance of July 2024 with simplifications and clarifications to streamline RRF implementation but expects the Commission to act swiftly on its promise to cut the administrative burden by 25 %;24. Regrets the high administrative burden and complexity brought by the RRF; stresses the considerable efforts required at national level to implement the RRF in parallel with structural funds; notes that between 2021 and 2024 the Technical Support Instrument supported more than 500 RRF-related reforms in the Member States, directly or indirectly related to the preparation, amendment, revision and implementation of the NRRPs; takes note of the Commission guidance of July 2024 with simplifications and clarifications to streamline RRF implementation but expects the Commission to act swiftly on its promise to cut the administrative burden by 25 %;

Amendment 21

Motion for a resolution

Paragraph 25

Motion for a resolutionAmendment
25. Believes that implementation delays underscore the risk that measures for which RRF funding has been paid will not be completed by the 2026 payment deadline; recalls the Commission’s statement at the Recovery and Resilience Dialogue (RRD) of 16 September 2024 that it will not reimburse non-implemented projects but considers it a shortcoming that RRF funds paid for milestones and targets assessed as fulfilled cannot be recovered if related measures are not eventually completed;25. Believes that implementation delays underscore the risk that measures for which RRF funding has been paid will not be completed by the 2026 payment deadline; recalls the Commission’s statement at the Recovery and Resilience Dialogue (RRD) of 16 September 2024 that it will not reimburse non-implemented projects but considers it a shortcoming that RRF funds paid for milestones and targets assessed as fulfilled cannot be recovered if related measures are not eventually completed; underlines the importance of the EU having funds available to enable it to invest in its priorities;

Amendment 22

Motion for a resolution

Paragraph 26

Motion for a resolutionAmendment
26. Notes that some milestones and targets may be no longer achievable because of objective circumstances; stresses that any NRRP revisions should be made in accordance with the RRF Regulation, including of the applicable deadlines, and should not entail backtracking on commitments or lower quality projects;26. Notes that some milestones and targets may be no longer achievable because of objective circumstances; stresses that any NRRP revisions should be made in accordance with the RRF Regulation, including of the applicable deadlines, and should not entail backtracking on commitments or lower quality projects; recalls the necessity that Member States have the same understanding of the concept of ‘final beneficiary’ and apply it in a uniform way;

Amendment 23

Motion for a resolution

Paragraph 28 a (new)

Motion for a resolutionAmendment
28a. Is concerned that some Member States might choose to forgo parts of the amounts or entire amounts associated with their last payment request, thus avoiding the fulfilment of the last milestones and targets and jeopardising the overall implementation of the NRRPs; is extremely concerned about the additional risks of measures being reversed after the end of the RRF lifetime and urges the Commission to ensure that such situations do not occur when making the final payments;

Amendment 24

Motion for a resolution

Paragraph 28 b (new)

Motion for a resolutionAmendment
28b. Is concerned by the Commission’s uneven evaluation of the NRRPs, which has led to double standards in the application of the RRF Regulation; is further concerned about the uneven and differing definition of milestones and targets from one NRRP to another, consistently reported by the ECA;

Amendment 25

Motion for a resolution

Paragraph 28 c (new)

Motion for a resolutionAmendment
28c. Considers that reforms may have a monetary value in the payment schedule which does not necessarily correspond with the associated costs of the reform and that, therefore, the link between costs and payments is weak; considers, however, that under the RRF, as repeatedly stated by the Commission, the monetary value of each payment, based on reforms achieved and investments made, eventually results in investments, as the value of all investments equals or surpasses the value of all payments;

Amendment 26

Motion for a resolution

Paragraph 30

Motion for a resolutionAmendment
30. Notes that the Commission relies on its own methodologies when calculating partial payments and suspensions of funds;30. Notes that the Commission relies on its own methodologies when calculating partial payments and suspensions of funds; notes that according to ECA audits, in several cases, requirements related to the fulfilment of milestones and targets had not adequately been met and that the Commission still made the corresponding payments; notes that the framework for assessing milestones and targets lacks explanations, including regarding why the verification mechanism as described in the operational arrangement should not be considered for the assessment; notes that definitions of ‘satisfactory fulfilment’ of the relevant milestones and targets are established through terms that lack a clear definition and contain discretionary elements, such as ‘minimal deviation from a requirement’ or ‘proportional delays’, and that the methodology for the determination of partial payments does not provide an explanation for the values chosen as coefficients; notes with concern that, as stated by the Commission in its mid-term evaluation of the RRF of 21 February 2024, a majority of Member States consider the payment suspension methodology still to be unclear when it comes to reforms because of the discretion given to the Commission in applying the methodology, which provides for arbitrary decisions and leaves the Member States in confusion regarding the paths they need to take to unlock the suspended funds; urges the Commission to revise this methodology in order to avoid any double standards in its application;

Amendment 27

Motion for a resolution

Paragraph 30 a (new)

Motion for a resolutionAmendment
30a. Is concerned that in several cases the ECA audits revealed that certain investments included in the NRRPs were either programmed before the eligibility period of the RRF or that various phases of the respective investments started before the eligibility period;

Amendment 28

Motion for a resolution

Paragraph 30 b (new)

Motion for a resolutionAmendment
30b. Notes the discussions on the RRF concerning insufficient details of the costs of achieving proposed milestones and targets and the use of ‘zero-cost measures’; considers that the limited information on the costs of measures has severely hampered the work of the discharge authority, as repeatedly mentioned in the discharge resolutions; notes that having clear details of costs also facilitates the work of control and oversight bodies such as the European Public Prosecutor’s Office (EPPO) and OLAF and can increase public scrutiny;

Amendment 29

Motion for a resolution

Paragraph 31

Motion for a resolutionAmendment
31. Welcomes the extensive work of the ECA in relation to the RRF and deems it important to thoroughly assess its findings, in particular its findings that milestones and targets are often rather vague and output-oriented and are therefore not fit to measure results and impacts, and its findings regarding the risks of double funding resulting from overlaps with other policies; notes that the Commission has accepted many but not all of the ECA’s recommendations;31. Welcomes the extensive work of the ECA in relation to the RRF and deems it important to thoroughly assess its findings, in particular its findings that milestones and targets are often rather vague and output-oriented and are therefore not fit to measure results and impacts, and its findings regarding the risks of double funding resulting from overlaps with other policies; notes that the Commission has accepted many but not all of the ECA’s recommendations; recalls the importance of setting up and systematically using integrated and interoperable IT systems within the Member States for all funding programmes and instruments and the necessity to use the Arachne system with all the Commission databases of EU-funded projects and their beneficiaries;

Amendment 30

Motion for a resolution

Paragraph 32

Motion for a resolutionAmendment
32. Regrets the lack of a proper RRF audit trail and the persistent lack of transparency despite the bi-annual reporting requirement for Member States on the 100 largest final recipients, which was introduced into REPowerEU upon Parliament’s request; regrets the delays in reporting by some Member States and the limited informative value of the information provided, which ultimately prevents compliance checks by the Commission or the ECA; reiterates its call for the lists of the largest final recipients for each Member State to include information on the economic operators involved and their beneficial owners;32. Regrets the lack of a proper RRF audit trail and the persistent lack of transparency despite the bi-annual reporting requirement for Member States on the 100 largest final recipients, which was introduced into REPowerEU upon Parliament’s request; regrets the delays in reporting by some Member States and the limited informative value of the information provided, which ultimately prevents compliance checks by the Commission or the ECA; expresses concern over the interpretation of the concept of ‘final recipient’ under the RRF, as often these are listed only at ministry level, and that the descriptions provided by Member States are vague; reiterates its call that the list of the 100 largest final recipients for each Member State provide the actual natural person or entity that is the last in the chain of money transfers; is concerned that, otherwise, it will be problematic to measure the impact and guarantee the visibility of the RRF funds for citizens; stresses the need for harmonised reporting standards and fully interoperable digital tracking tools;

Amendment 31

Motion for a resolution

Paragraph 33

Motion for a resolutionAmendment
33. Is concerned about persistent weaknesses in national reporting and control mechanisms, due in part to absorption pressure affecting the capacity to detect ineligible expenditure; regrets the reliance on manual cross-checks and self-declarations in the absence of interoperable IT tools and harmonised standards, which entail the risk that expenditure is declared twice;33. Is deeply concerned about persistent weaknesses in national reporting and control mechanisms, due in part to absorption pressure affecting the capacity to detect ineligible expenditure; considers that these pose risks to the availability of complete and accurate data underlying payment requests, access to these requests for control purposes, and the effective functioning of Member State control systems to protect the Union’s financial interests; regrets the reliance on manual cross-checks and self-declarations by recipients of EU funds in the absence of interoperable IT tools and harmonised standards, which entail the risk that expenditure is declared twice; stresses that, in this respect, a centralised, interoperable data collection and mining system would facilitate efficient data collection and reporting, while fragmented systems underscore the need for streamlined approaches; recalls the importance of giving the ECA full access to the Fenix system; believes that payments should, where appropriate, be suspended and, where appropriate, amounts recovered if weaknesses persist in the national control systems;

Amendment 32

Motion for a resolution

Paragraph 33 a (new)

Motion for a resolutionAmendment
33a. Underlines that, owing to the fact that the support which the RRF may provide can be additional to support provided under other Union programmes and instruments, and given the differences in the model of implementation and the different types of beneficiaries and recipients under the RRF compared to most other Union funds, double funding between the RRF and other EU financing instruments might not be easy to identify; urges the Commission to remain vigilant and proactive in identifying any potential double funding, and, furthermore, to issue further guidance in order to facilitate the implementation of the RRF in a consistent way; considers that, as a rule, measures already included in other national plans benefiting from EU funding (e.g. cohesion and agriculture) should not be included in NRRPs, even if they do not incur any costs, as their inclusion raises doubts about the RRF’s adequate implementation;

Amendment 33

Motion for a resolution

Paragraph 33 b (new)

Motion for a resolutionAmendment
33b. Welcomes the fact that the recast Financial Regulation establishes horizontal measures for a centralised website (Financial Transparency System) at Union level, covering all recipients of EU funding, and notes that this website is designed to overcome the current fragmentation, enhance transparency and facilitate public scrutiny of recipients; stresses, furthermore, that all Member States will have an obligation to provide the Commission with access to these data, which are to be fed into Arachne by automated means; regrets that the use of Arachne by the Member States is not compulsory;

Amendment 34

Motion for a resolution

Paragraph 33 c (new)

Motion for a resolutionAmendment
33c. Expresses concern about the ECA’s findings that the reporting of fraud involving RRF expenditure still lacks a standardised approach with strong coordination and cooperation between Member States; regrets that there are no clear guidelines about when suspected fraud should be reported, whether there is a reporting threshold, what standard information should be reported and what remedial measures should be taken;

Amendment 35

Motion for a resolution

Paragraph 34

Motion for a resolutionAmendment
34. Shares the view of the ECA that the FNLC model does not preclude reporting on actual costs;34. Shares the view of the ECA that the FNLC model does not preclude reporting on actual costs; calls on the Commission to introduce mandatory cost reporting mechanisms and cross-checking with cohesion funds to prevent double funding and financial mismanagement; emphasises the need for increased involvement of the EPPO in investigating financial irregularities in RRF implementation;

Amendment 36

Motion for a resolution

Paragraph 35

Motion for a resolutionAmendment
35. Highlights the important role of the European Public Prosecutor’s Office (EPPO) and OLAF in protecting the EU’s financial interests; welcomes the fact that EPPO investigations into RRF-related fraud and corruption cases have led to several arrests, indictments and seizures of RRF funds and expects the number of investigations (233 cases in 2024) to grow as RRF implementation advances;35. Highlights the important role of the European Public Prosecutor’s Office (EPPO) and OLAF in protecting the EU’s financial interests; welcomes the fact that EPPO investigations into RRF-related fraud and corruption cases have led to several arrests, indictments and seizures of RRF funds and expects the number of investigations (233 cases in 2024) to grow as RRF implementation advances; stresses that the figures concerning the amounts involved presented by the EPPO confirm that the risk of fraud is present in the RRF and that these figures call into question the reliability of Member State management declarations in terms of reporting detected fraud and the remedial measures taken;

Amendment 37

Motion for a resolution

Paragraph 37

Motion for a resolutionAmendment
37. Reiterates that information on the implementation of the RRF transmitted by the Commission to the Council should simultaneously be made available to Parliament; encourages the sharing of relevant outcomes of discussions held in Council preparatory bodies with the competent parliamentary committees;37. Reiterates that information on the implementation of the RRF transmitted by the Commission to the Council should simultaneously be made available to Parliament; encourages the systematic sharing of relevant outcomes of discussions held in Council preparatory bodies with the competent parliamentary committees;

Amendment 38

Motion for a resolution

Paragraph 38

Motion for a resolutionAmendment
38. Regrets the fact that Parliament has no role in the design of NRRPs and is not consulted on payment requests; expects to be informed about the context of NRRP revisions in order to make its own assessment of the revisions;38. Strongly regrets the fact that Parliament has no role in the design of NRRPs and is not consulted on payment requests; insists on being informed about the context of NRRP revisions in order to make its own assessment of the revisions, while applying key performance indicators for the evaluation of the added value of these revisions;

Amendment 39

Motion for a resolution

Paragraph 39

Motion for a resolutionAmendment
39. Regrets the insufficient involvement of local and regional authorities (LRAs), civil society organisations, social partners, national parliaments and other relevant stakeholders in the design, revision or implementation of NRRPs; recalls that the participation of LRAs, national authorities and those responsible for developing these policies is crucial for the success of the RRF, as stated in Article 28 of the RRF Regulation; recalls that Parliament supported a binding provision in the RRF to establish a multilevel dialogue to engage relevant stakeholders and discuss the preparation and implementation of NRRPs with them, with a clear consultation period; calls, therefore, for the maximum possible stakeholder involvement in the implementation of NRRPs, in accordance with the national legal framework and based on clear and transparent principles;39. Strongly condemns the insufficient involvement of local and regional authorities (LRAs), civil society organisations, social partners, national parliaments and other relevant stakeholders in the design, revision or implementation of NRRPs; recalls that the participation of LRAs, national authorities and those responsible for developing these policies is crucial for the success of the RRF, as stated in Article 28 of the RRF Regulation; recalls that Parliament supported a binding provision in the RRF to establish a multilevel dialogue to engage relevant stakeholders and discuss the preparation and implementation of NRRPs with them, with a clear consultation period; calls, therefore, for the maximum possible stakeholder involvement in the implementation of NRRPs, in accordance with the national legal framework and based on clear and transparent principles;

Amendment 40

Motion for a resolution

Paragraph 41

Motion for a resolutionAmendment
41. Believes that the combination of reforms and investments has proved successful but that a clearer link is needed between the two; insists that the level of ambition of NRRPs should be commensurate with the RRF timeline in order to ensure their successful implementation; urges the Commission to apply the lessons learned and the ECA’s observations, and to ensure that future performance-based instruments are designed also to measure results and impacts and not only outputs;41. Believes that the success of the RRF can only be ensured through a clear link between reforms and investments; insists that the level of ambition of NRRPs should be commensurate with the RRF timeline in order to ensure their successful implementation; urges the Commission to apply the lessons learned and the ECA’s observations, and to ensure that future performance-based instruments are designed also to measure results and impacts and not only outputs; insists on the urgent implementation of the ECA’s recommendation to establish more specific key performance indicators, ensuring that investments align with the objectives of the RRF instrument and deliver clear EU added value;

Amendment 41

Motion for a resolution

Paragraph 42 a (new)

Motion for a resolutionAmendment
42a. Calls on the Commission to closely monitor the continued fulfilment of milestones and targets, in particular those related to auditing, monitoring and control, and to proactively keep Parliament duly informed;

Amendment 42

Motion for a resolution

Paragraph 43

Motion for a resolutionAmendment
43. Considers that better training and capacity-building across all regions and authorities involved, in particular at national level, could have accelerated the RRF’s implementation; considers that the Commission could have assisted Member States more at the planning stage and provided earlier implementation guidance, in particular with a view to strengthening their audit and control systems and the cross-border dimension of the RRF;43. Considers that better training and capacity-building across all regions and authorities involved, in particular at national level, could have accelerated the RRF’s implementation; considers that the Commission could have assisted Member States more at the planning stage and provided earlier implementation guidance, in particular with a view to strengthening their audit and control systems and the cross-border dimension of the RRF; underlines that artificial intelligence (AI) is a useful support tool for Member States to carry out audits and controls;

Amendment 43

Motion for a resolution

Paragraph 44

Motion for a resolutionAmendment
44. Highlights the importance of mitigating the risk of double funding; suggests the deployment of an integrated and interoperable IT and data mining system and the development of clear standards for datasets to be applied across Member States, with a view to allowing comprehensive and automated expenditure tracking; calls for greater coordination of the different bodies involved in the implementation of the various EU and national programmes;44. Highlights the importance of mitigating the risk of double funding and of double counting; suggests the harmonisation of data collection and reporting through the deployment of a unified, integrated, interoperable and binding data mining and reporting system and the development of clear standards, including standard definitions and a harmonised methodology for datasets to be applied across Member States, with a view to allowing comprehensive and automated expenditure tracking in order to avoid overlapping projects; calls for greater coordination of the different bodies involved in the implementation of the various EU and national programmes;

Amendment 44

Motion for a resolution

Paragraph 45

Motion for a resolutionAmendment
45. Considers that its role in the monitoring of the RRF should be further enhanced;45. Considers that its role in the monitoring of the RRF should be further enhanced; reiterates the importance of using all new technologies, such as AI, for monitoring;

Amendment 45

Motion for a resolution

Paragraph 45 a (new)

Motion for a resolutionAmendment
45a. Urges the Commission to strengthen the design of any future performance-based instruments by developing adequate governance that allows Parliament to act as budgetary authority and provides a structured framework for strategic alignment between all EU funds at both the programming and implementation stages; calls on the Commission to strengthen, in a timely manner, the administrative capacity, within Member States, of authorities involved in managing EU funds; recalls that administrative capacity is considered critical for achieving performance targets, fund absorption and compliance with audit and control requirements;

Amendment 46

Motion for a resolution

Paragraph 46

Motion for a resolutionAmendment
46. Reiterates its call for an open platform which contains data on all projects, final recipients and the regional distribution of funding, thereby facilitating auditing and democratic oversight;46. Reiterates its call for an open platform which contains data on all projects, actual final recipients and the regional distribution of funding, thereby facilitating auditing and democratic oversight;

Amendment 47

Motion for a resolution

Paragraph 47

Motion for a resolutionAmendment
47. Stresses that any possible future decisions on EU borrowing should respect the unity of the budget and Parliament’s role as part of the budgetary authority; highlights the risks of cost overruns for the repayment of debt, resulting inter alia from volatile interest rates; deems it important to ensure from the outset that sufficient funding is available to cover these costs without presenting a detriment to other programmes or political priorities;47. Stresses that the RRF was a one-time crisis mechanism and as such cannot be renewed; insists that any possible future decisions on EU borrowing should respect the unity of the budget and Parliament’s role as part of the budgetary authority; highlights the risks of cost overruns for the repayment of debt, resulting inter alia from volatile interest rates; deems it important to ensure from the outset that sufficient funding is available to cover these costs without presenting a detriment to other programmes or political priorities; is deeply concerned about the longevity of common European debt and the lack of a clear repayment plan; urges the Commission to come up with a clear path to repaying the common debt generated by the RRF;

Amendment 48

Motion for a resolution

Paragraph 48

Motion for a resolutionAmendment
48. Notes the declared intention of the Commission to draw on the RRF experience when designing its proposals for the post-2027 EU funding programmes, due later this year; acknowledges that the independent ex post evaluation will come too late to feed into the process leading up to the next programming period, but expects the Commission and the co-legislators to take due account of the lessons learned from the RRF and of the recommendations of relevant stakeholders, in particular LRA, civil society organisations and social partners;48. Notes the declared intention of the Commission to draw on the RRF experience when designing its proposals for the post-2027 EU funding programmes, due later this year; acknowledges that the independent ex post evaluation will come too late to feed into the process leading up to the next programming period, but expects the Commission and the co-legislators to take due account of the lessons learned from the RRF and to take all the corrective measures recommended by the ECA and the recommendations of relevant stakeholders, in particular LRA, civil society organisations and social partners;

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

Date adopted8.4.2025
Result of final vote+: –: 0:22 4 1
Members present for the final voteGeorgios Aftias, Arno Bausemer, Gilles Boyer, José Cepeda, Olivier Chastel, Caterina Chinnici, Dick Erixon, Daniel Freund, Gerben-Jan Gerbrandy, Esteban González Pons, Niclas Herbst, Monika Hohlmeier, Virginie Joron, Kinga Kollár, Marit Maij, Csaba Molnár, Fidias Panayiotou, Jacek Protas, Julien Sanchez, Jonas Sjöstedt, Carla Tavares, Tomáš Zdechovský
Substitutes present for the final voteErik Marquardt, Bert-Jan Ruissen, Şerban Dimitrie Sturdza, Annamária Vicsek
Members under Rule 216(7) present for the final voteRaffaele Topo

OPINION OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the implementation report on the Recovery and Resilience Facility

(2024/2085(INI))

Rapporteur for opinion: MariePierre Vedrenne

AMENDMENTS

The Committee on Employment and Social Affairs submits the following to the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible:

Amendment 1

Motion for a resolution

Citation 8 a (new)

Motion for a resolutionAmendment
– having regard to the European Pillar of Social Rights (EPSR), proclaimed and signed by Parliament, the Council and the Commission on 17 November 2017, and its 20 principles,

Amendment 2

Motion for a resolution

Citation 8 b (new)

Motion for a resolutionAmendment
– having regard to the Commission communication of 4 March 2021 entitled ‘The European Pillar of Social Rights Action Plan’ (COM(2021)0102) and its 2030 headline targets, which address employment, skills and training, and poverty reduction,

Amendment 3

Motion for a resolution

Citation 8 c (new)

Motion for a resolutionAmendment
– having regard to the United Nations Sustainable Development Goals, in particular goals 1, 4, 5, 8 and 10,

Amendment 4

Motion for a resolution

Citation 8 d (new)

Motion for a resolutionAmendment
– having regard to Council Recommendation (EU) 2021/1004 of 14 June 2021 establishing a European Child Guarantee1a,
__________________
1a OJ L 223, 22.6.2021, p. 14, ELI: http://data.europa.eu/eli/reco/2021/1004/oj.

Amendment 5

Motion for a resolution

Citation 8 e (new)

Motion for a resolutionAmendment
– having regard to the Council Recommendation of 30 October 2020 on A Bridge to Jobs – Reinforcing the Youth Guarantee and replacing the Council Recommendation of 22 April 2013 on establishing a Youth Guarantee1a,
__________________
1a OJ C 372, 4.11.2020, p. 1.

Amendment 6

Motion for a resolution

Citation 12 a (new)

Motion for a resolutionAmendment
– having regard to the Commission communication of 17 December 2024 entitled ‘2025 European Semester – Autumn package’ (COM(2024)0700),

Amendment 7

Motion for a resolution

Citation 12 b (new)

Motion for a resolutionAmendment
– having regard to the Commission proposal of 17 December 2024 for a joint employment report from the Commission and the Council (COM(2024)0701) (the JER),

Amendment 8

Motion for a resolution

Citation 19 a (new)

Motion for a resolutionAmendment
– having regard to the Recovery and Resilience Scoreboard,

Amendment 9

Motion for a resolution

Citation 19 b (new)

Motion for a resolutionAmendment
– having regard to the Eurofound report of 26 February 2024 entitled ‘Social governance of the Recovery and Resilience Facility: Involvement of the national social partners’,

Amendment 10

Motion for a resolution

Citation 19 c (new)

Motion for a resolutionAmendment
– having regard to Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union1a, _______________ 1a OJ L 275, 25.10.2022, p. 33, ELI: http://data.europa.eu/eli/dir/2022/2041/oj.

Amendment 11

Motion for a resolution

Recital -A (new)

Motion for a resolutionAmendment
-A. whereas the social dimension of the EU’s recovery is a horizontal aspect in the Recovery and Resilience Facility (RRF); whereas the general objective of the RRF is to promote the Union’s economic, social and territorial cohesion by improving the resilience, crisis preparedness, adjustment capacity and growth potential of the Member States, by mitigating the social and economic impact of the COVID-19 crisis, contributing to the implementation of the EPSR and by supporting the green and digital transitions, thereby contributing to upward economic and social convergence, restoring and promoting sustainable growth and fostering the creation of high-quality employment;

Amendment 12

Motion for a resolution

Recital –A a (new)

Motion for a resolutionAmendment
–Aa. whereas the scope of the RRF refers to six policy pillars, namely:
(a) green transition;
(b) digital transformation;
(c) smart, sustainable and inclusive growth;
(d) social and territorial cohesion;
(e) health, and economic, social and institutional resilience; and
(f) policies for the next generation, children and the youth;
whereas there is a need to ensure coherence and synergies between actions under all the pillars, given their interrelated nature;

Amendment 13

Motion for a resolution

Recital A

Motion for a resolutionAmendment
A. whereas reforms and investments under the Recovery and Resilience Facility (RRF) help to make the EU more resilient and less dependent by diversifying key supply chains and thereby strengthening the strategic autonomy of the EU; whereas reforms and investments under the RRF also generate European added value;A. whereas reforms and investments under the RRF help to make the EU more resilient and less dependent by diversifying key supply chains and thereby strengthening the strategic autonomy of the EU; whereas reforms and investments under the RRF should contribute to the implementation of the EPSR, sustainable and inclusive growth, and upward social convergence, should support a just transition to a greener and more digital economy, strengthening European competitiveness while reducing social and territorial inequalities and protecting vulnerable people, and should also generate European added value; whereas reforms and investments under the RRF should also ensure social inclusion and reinforce public and social services and infrastructure;

Amendment 14

Motion for a resolution

Recital A a (new)

Motion for a resolutionAmendment
Aa. whereas the RRF offers an unprecedented opportunity to ensure fair and just transitions towards climate neutrality, digitalisation and demographic change; whereas it should address gender-specific socio-economic impacts in the recovery process; whereas measures should address social protection, quality employment, affordable housing, and support for groups in vulnerable situations to improve living standards in line with the EPSR;

Amendment 15

Motion for a resolution

Recital A b (new)

Motion for a resolutionAmendment
Ab. whereas in recent years, the EU has shown strong resilience to major economic and social disruptions, in particular thanks to coordinated responses and new instruments, such as the RRF and the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE); whereas these tools have been crucial in preventing asymmetric recovery among Member States and in keeping the transition to a sustainable and inclusive economy on track;

Amendment 16

Motion for a resolution

Recital A c (new)

Motion for a resolutionAmendment
Ac. whereas the social consequences of the crises have had an unequal impact, particularly affecting low-income individuals and groups in vulnerable situations;

Amendment 17

Motion for a resolution

Recital B a (new)

Motion for a resolutionAmendment
Ba. whereas the Member States have achieved different levels of progress in implementing their recovery and resilience plans (RRPs); whereas the European Court of Auditors’ special report 13/20241a found that the Member States would struggle to absorb the full amount of allocated funds by 31 August 2026 and that risks remained as to the completion of measures in the second half of the RRF’s implementation; whereas implementation delays resulted from, inter alia, increased inflation, public procurement challenges, supply shortages and market price fluctuations; whereas, when evaluating RRF implementation, it is essential to apply the lessons learned and update existing structures; ________________ 1a Special report 13/2024 of the Court of Auditors of 10 September 2024 entitled ‘Absorption of funds from the Recovery and Resilience Facility – Progressing with delays and risks remain regarding the completion of measures and therefore the achievement of RRF objectives’.

Amendment 18

Motion for a resolution

Recital F

Motion for a resolutionAmendment
F. whereas effective democratic control and parliamentary scrutiny over the implementation of the RRF require the full involvement of Parliament and the consideration of all its recommendations at all stages;F. whereas effective democratic control and parliamentary scrutiny over the implementation of the RRF require the full involvement of Parliament and the consideration of all its recommendations at all stages; whereas the consultation of relevant stakeholders, in particular social partners, civil society organisations, youth organisations and local and regional authorities, is also crucial for the preparation and implementation of NRRP measures and is a requirement under the RRF Regulation;

Amendment 19

Motion for a resolution

Recital F a (new)

Motion for a resolutionAmendment
Fa. whereas the JER found that national social partners’ assessment of their involvement in the implementation of the RRF in 2023 was uneven; whereas the institutional frameworks for involving the social partners are diverse, since some Member States have established specific settings and procedures, while others have used existing social dialogue channels and, in a few countries, the social partners have been involved through new bodies or specific working groups created in the context of the European Semester or to monitor the implementation of the RRPs; whereas the Member States should promote collective bargaining and social dialogue, in line with the Council Recommendation on strengthening social dialogue in the European Union1a, together with the timely and meaningful involvement of social partners in relevant policymaking at EU and national level, including in relation to the implementation of Member States’ recovery and resilience plans;
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1a Council Recommendation of 12 June 2023 on strengthening social dialogue in the European Union (OJ C, C/2023/1389, 6.12.2023, ELI: http://data.europa.eu/eli/C/2023/1389/oj).

Amendment 20

Motion for a resolution

Recital F b (new)

Motion for a resolutionAmendment
Fb. whereas according to the JER 2025, out of the 7 129 milestones and targets included in the 27 RRPs, 2 201 are expected to contribute to social policies (around 31 %) and, out of the 1 742 milestones and targets fulfilled as of 14 November 2024, 505 foster social policies (around 30 %);

Amendment 21

Motion for a resolution

Recital F c (new)

Motion for a resolutionAmendment
Fc. whereas the EU faces an ageing society with projected declines in pension replacement rates over the next four decades, while long-term care needs are already high and rising; whereas the risk of poverty or social exclusion among older people has remained stable, but pension replacement rates for a 40-year career are expected to fall in most EU countries, in some cases by more than 20 percentage points;

Amendment 22

Motion for a resolution

Recital G

Motion for a resolutionAmendment
G. whereas the Commission has to provide an independent ex post evaluation report on the implementation of the RRF by 31 December 2028, consisting of a global assessment of the RRF and containing information on its impact in the long term;G. whereas the Commission has to provide an independent ex post evaluation report on the implementation of the RRF by 31 December 2028, consisting of a global assessment of the RRF and containing information on its impact in the long term, including data on social outcomes;

Amendment 23

Motion for a resolution

Recital G a (new)

Motion for a resolutionAmendment
Ga. whereas each Member State must dedicate at least 20 % of the total allocation under its RRP to measures contributing to the digital transition or to addressing the ensuing challenges; whereas improving the digital skills of the general population and the workforce, boosting the digitalisation of businesses, increasing the range of digital public services and speeding up the implementation of flagship e-government projects are all essential steps on the road to achieving the digital transition;

Amendment 24

Motion for a resolution

Recital G b (new)

Motion for a resolutionAmendment
Gb. whereas only 55.56 % of adults have at least basic digital skills1a; whereas one of the EU’s digital targets is for 80 % of adults to have at least basic digital skills by 2030; whereas the EU needs to overcome all forms of skills shortages and supply and demand gaps in order to optimise its human capital; whereas everyone should have access to proper digital infrastructure and to digital skills training, for the sake of equal opportunities in the education system and on the labour market; whereas significant reforms and investments in basic skills, including curricular revisions, have been made but have not sufficiently addressed existing challenges, requiring further efforts across the EU to reverse declining trends;
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1a Eurostat, ‘Database’, https://ec.europa.eu/eurostat/databrowser/view/sdg_04_70/default/table; Eurostat, ‘56% of EU people have basic digital skills’, 15 December 2023, https://ec.europa.eu/eurostat/web/products-eurostat-news/-/ddn-20231215-3.

Amendment 25

Motion for a resolution

Paragraph 1

Motion for a resolutionAmendment
1. Highlights the fact that the RRF is an unprecedented instrument of solidarity in the light of two unprecedented crises and a cornerstone of the NGEU instrument, ending in 2026; highlights the stabilising effect of the RRF for Member States at a time of great economic uncertainty, as it mitigates negative economic and social consequences and supports governments by contributing to the implementation of the European Pillar of Social Rights;1. Recognises the fact that the RRF is an unprecedented instrument of solidarity in the light of two unprecedented crises and a cornerstone of the NGEU instrument, ending in 2026; highlights the stabilising effect of the RRF for Member States at a time of great economic uncertainty, as it mitigates the negative economic and social consequences of the crises; recalls that a general objective of the RRF is to contribute to the implementation of the European Pillar of Social Rights in order to build a stronger social Europe and strengthen social cohesion, thus reinforcing long-term resilience across the EU; underlines that this aim should be further strengthened by ensuring long-term public investment in high-quality public social services and by promoting measures that reduce inequalities for all;

Amendment 26

Motion for a resolution

Paragraph 1 a (new)

Motion for a resolutionAmendment
1a. Recalls that the RRF plays a crucial role in promoting social and territorial cohesion by combating poverty, reducing unemployment and fostering an inclusive economic recovery; notes that achieving an employment rate of 78 % in the EU by 2030 is one of the headline targets set by the European Pillar of Social Rights action plan; emphasises that, while this target is within reach, further steps are needed at all levels to activate under-represented groups’ participation in the labour market and attract more people into the labour market; stresses the need for ambitious reforms and investments that align with EPSR principles, prioritise high-quality employment and the inclusion of vulnerable groups, address skill mismatches and emerging technologies, and strengthen social dialogue, infrastructure and social protection systems to address immediate challenges and long-term labour market resilience; points out that, based on the most recent figures available, over 16.3 million people have participated in education or training with support received from the RRF and over 2.1 million people have either found employment or engaged in job-seeking activities;

Amendment 27

Motion for a resolution

Paragraph 1 b (new)

Motion for a resolutionAmendment
1b. Highlights that RRF investments and reforms targeting the next generation, particularly in education and access to quality public services, are crucial for long-term social convergence; recognises that investing in children’s well-being and quality education is essential for social cohesion and economic stability; stresses that measures targeting the next generation, children and young people in the NRRPs focus on early childhood education and care, education and training, the improvement of school infrastructure, support for disadvantaged children and youth employment; notes, in this regard, that the NRRPs allocate approximately EUR 56.4 billion to this pillar and that the Commission’s annual report indicates that tangible progress has been made by the Member States, with 259 of 665 milestones and targets reported as completed by the Member States or assessed as fulfilled by the Commission by 31 August 2024; takes note of a progress rate of 39 %, including 21 % of payment requests assessed, and of the available figures that indicate that over 9.4 million young people aged 15-29 received support via the RRF; calls on the Member States to further strengthen efforts under this pillar in line with the objectives of the European Child Guarantee, the European Care Strategy, Council recommendations on early childhood education and care and access to affordable, high-quality long-term care;

Amendment 28

Motion for a resolution

Paragraph 1 c (new)

Motion for a resolutionAmendment
1c. Highlights the fact that, together with cohesion policy funds, the implementation of reforms and investments in Member States’ RRPs supports fair, inclusive and sustainable growth, thereby increasing job creation and promoting financial stability and investment; stresses that, alongside support provided by the European Social Fund Plus, the European Regional Development Fund, the Just Transition Fund and the Technical Support Instrument, the RRF promotes the Union’s economic, social and territorial cohesion by enhancing the competitiveness, resilience, crisis preparedness, adjustment capacity and growth potential of the Member States, and by fostering the creation of high-quality jobs through relevant reforms and investments; notes that numerous measures have been included by the Member States in their NRRPs to support social and territorial cohesion, such as those dedicated to labour market access, social protection and inclusion, and territorial infrastructure and services; notes that the 27 NRRPs have allocated approximately EUR 261.2 billion to this pillar, with 1 064 of the 2 888 milestones and targets reported as completed by the Member States or assessed as fulfilled by the Commission by 31 August 20241a; emphasises that this represents a 37 % progress rate, including 20 % of payment requests assessed;
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1a European Parliamentary Research Service, ‘Recovery and Resilience Facility: State of play and way forward’, February 2025, https://www.europarl.europa.eu/RegData/etudes/IDAN/2025/765765/EPRS_IDA(2025)765765_EN.pdf.

Amendment 29

Motion for a resolution

Paragraph 2

Motion for a resolutionAmendment
2. Welcomes the fact that the RRF has provided temporary additional fiscal space since the pandemic and contributed to the prevention of divergences between Member States with diverse fiscal space; notes the Commission finding that the RRF has led to a sustained increase in investments across the EU and that the Commission expects the RRF to have a lasting impact across the EU beyond 2026 given its synergies with other EU funds;2. Welcomes the fact that the RRF has provided temporary, additional and stabilising fiscal space since the pandemic and contributed to the prevention of divergences between Member States by providing them with fast and direct support; notes the Commission finding that the RRF has led to a sustained increase in investments across the EU and that the Commission expects the RRF to have a lasting impact across the EU beyond 2026 given its synergies with other EU funds; stresses, however, that social investments should be further prioritised to ensure a lasting impact, particularly in terms of housing, energy poverty, digital inclusion, well-functioning labour markets and equitable access to high-quality public services for all;

Amendment 30

Motion for a resolution

Paragraph 2 a (new)

Motion for a resolutionAmendment
2a. Notes that the RRF Regulation, along with the European Semester as the framework for identifying national reform priorities, contains a strong link to the principles of the EPSR; stresses that the measures in the RRPs expected to foster social policies do not address all principles of the EPSR equally, with some principles only marginally covered or not fully aligned with their content; calls on the Commission to assess the impact of the RRPs on progress towards EPSR targets and to conduct a disaggregated analysis of how each principle has been addressed by the measures included in the RRPs;

Amendment 31

Motion for a resolution

Paragraph 2 b (new)

Motion for a resolutionAmendment
2b. Recalls that Member States’ implementation of the RRF, as well as other EU funds, such as SURE, has helped to protect labour markets from the risk of long-term damage caused by the double economic shock of the pandemic and the energy crisis; notes that in May 2023, employment rates reached record high levels, while unemployment declined to a record low of around 6 % and has remained low ever since; recalls, however, that youth unemployment remains persistently high, averaging 15 % across the EU and over 20 % in a number of Member States; highlights, in this regard, the commitments under the reinforced Youth Guarantee, which continues to drive structural reforms and support youth employability; calls on the Member States, in this regard, to prioritise the reinforced Youth Guarantee in their RRPs and to step up their investments in education, training and employment support for young people under the next generation pillar;

Amendment 32

Motion for a resolution

Paragraph 2 c (new)

Motion for a resolutionAmendment
2c. Highlights the Member States’ varied efforts towards the introduction of regulatory and non-regulatory reforms and investment programmes to increase social housing stock and support housing affordability, such as new affordable housing and subsidised lending programmes, social housing renovation programmes for the most vulnerable groups and governmental support to municipalities for new housing projects and renovations; calls on the Member States to prioritise ensuring access to decent and affordable social housing or quality housing assistance for those in need, in accordance with Principle 19 of the EPSR; stresses the importance of safeguarding vulnerable people’s right to appropriate assistance and protection against forced eviction and the provision of adequate shelter and services for homeless people to promote their social inclusion;

Amendment 33

Motion for a resolution

Paragraph 3

Motion for a resolutionAmendment
3. Takes note of the Commission’s projection in 2024 concerning the potential of NGEU’s impact on the EU’s real gross domestic product (GDP) by 2026, which is significantly lower than its simulation in 2020 (1.4 % compared with 2.3 %) and of the estimation that NGEU could lead to a sizeable, short-run increase in EU employment by up to 0.8 %; notes with satisfaction that long-term benefits of the RRF on GDP could be three to six times bigger than the NGEU budget disbursed, depending on the productivity effects of RRF investment; highlights, however, the difficulty of quantifying the precise social and economic impact of the RRF, as the impact of reforms only becomes clear following a delay; notes the Commission’s finding that approximately half of the expected increase in public investment between 2019 and 2025 is related to investment financed by the EU budget, particularly by the RRF;3. Takes note of the Commission’s projection in 2024 concerning the potential of NGEU’s impact on the EU’s real gross domestic product (GDP) by 2026, which is significantly lower than its simulation in 2020 (1.4 % compared with 2.3 %) and of the estimation that NGEU could lead to a sizeable, short-run increase in EU employment by up to 0.8 %; notes with satisfaction that long-term benefits of the RRF on GDP could be three to six times bigger than the NGEU budget disbursed, depending on the productivity effects of RRF investment; stresses, however, the difficulty of quantifying the precise social and economic impact of the RRF, given that the effects of reforms take time to materialise, and underlines that investments should be evaluated not only on the basis of economic growth but also on the basis of their contributions to implementing the EPSR, reducing inequalities, improving labour market conditions and quality job creation, and ensuring a just transition; notes the Commission’s finding that approximately half of the expected increase in public investment between 2019 and 2025 is related to investment financed by the EU budget, particularly by the RRF;

Amendment 34

Motion for a resolution

Paragraph 3 a (new)

Motion for a resolutionAmendment
3a. Highlights that labour and skills shortages are serious bottlenecks for the EU’s growth, competitiveness and green and digital transitions, affecting different sectors and the Member States to varying degrees, with consequences for the EU’s overall resilience and that, despite its importance, participation in adult learning remains limited across the Member States; stresses that RRF measures can boost investments in workers’ skills and training throughout their life cycle in order to achieve education and training systems that better respond to changing skill demands and obtain better labour market outcomes in terms of both the quantity and quality of jobs; calls on the Member States to further support measures to increase participation in adult learning, with a particular focus on low-skilled individuals, as many countries are developing individual learning accounts and micro-credentials and believes that further analysis of RRF measures in this area could be useful in order to substantially evaluate their impact; recalls that the free movement of workers is a fundamental freedom and that labour mobility within the EU can play a significant role in addressing labour and skills shortages; encourages the Member States to use Cedefop’s skill forecast and its projections of future employment trends in sectors, occupations and qualifications in the design and implementation of NRRP measures addressing labour and skills shortages;

Amendment 35

Motion for a resolution

Paragraph 3 b (new)

Motion for a resolutionAmendment
3b. Notes that the RRF contributes to, among others, jobs, adult learning and skills, the modernisation of labour market institutions and general, vocational and higher education; underlines that these measures aim to address some of the challenges for the quality, equity and labour market relevance of education and training systems across the EU, including with a view to tackling skills shortages; calls on the Member States to continue to support the modernisation of quality higher education through governance reforms and measures to boost internationalisation and create a dynamic, result-oriented and effective research and innovation environment;

Amendment 36

Motion for a resolution

Paragraph 4

Motion for a resolutionAmendment
4. Notes that the RRF has incentivised the implementation of some reforms included in the country-specific recommendations made in the context of the European Semester and that the RRF Scoreboard is used to monitor the progress made towards achieving milestones and targets, as well as compliance with horizontal principles, and in particular the six pillars, namely the green transition, the digital transformation, smart, sustainable and inclusive growth, social and territorial cohesion, health, economic, social and institutional resilience, and policies for the next generation, children and young people, including education;4. Notes that the RRF requires the NRRPs to address all or a significant subset of the challenges identified in the relevant country-specific recommendations (CSR) as a prerequisite for a positive assessment; acknowledges that the RRF has incentivised the implementation of some reforms included in the country-specific recommendations made in the context of the European Semester, but that the ECA has found some remaining gaps concerning a lack of inclusion of certain CSR elements; recalls that the RRF Scoreboard is used to monitor the progress made towards achieving milestones and targets, as well as compliance with horizontal principles, and in particular the six pillars, namely the green transition, the digital transformation, smart, sustainable and inclusive growth – including economic cohesion, jobs, productivity, competitiveness, research, development and innovation, and a well-functioning internal market with strong small and medium-sized enterprises (SMEs) – social and territorial cohesion, health, economic, social and institutional resilience, and policies for the next generation, children and young people, including education and skills; calls on the Commission to continue monitoring labour and skills shortages and related challenges in the EU in the context of the European Semester, including by carrying out thematic discussions, in order to promote the sharing of knowledge and good practices among Member States; stresses the importance of investments aimed at enhancing the autonomy of people with disabilities;

Amendment 37

Motion for a resolution

Paragraph 4 a (new)

Motion for a resolutionAmendment
4a. Recalls that the RRF should support the EU’s demographic transition in line with the EPSR by promoting employment and equal opportunities, including quality jobs for older workers, investing in lifelong learning, ensuring adequate living standards in old age through sustainable and adequate pensions, and ensuring sufficient investment for long-term care (LTC) to support healthy and sustainable ageing; is concerned that, according to the JER 2025, pension replacement rates are expected to decrease and long-term care needs are expected to increase, which will exacerbate the current structural challenges of the availability, affordability and quality of LTC; stresses that in an ageing society, ensuring the adequacy and fiscal sustainability of pensions requires a broad policy mix; believes that the Member States need to make more efforts regarding the adequacy of pensions and the quality of LTC services, also through the investments and reforms included in their RRPs in line with Principles 15 and 18 of the EPSR; calls on the Member States to implement forward-looking pension reforms that not only ensure fiscal sustainability but also strengthen pension adequacy, ensuring a decent standard of living for all;

Amendment 38

Motion for a resolution

Paragraph 4 b (new)

Motion for a resolutionAmendment
4b. Notes that despite increased investments in the EU, real wages in the EU and in most Member States remain below pre-pandemic levels, while precarious employment remains a concern; stresses that the fact that the impact of social transfers (excluding pensions) on poverty reduction has decreased slightly in 2023 underlines the importance of further strengthening efforts to ensure adequate income support and coverage in line with Principle 14 of the EPSR; observes that several Member States have amended or plan to amend their minimum wage frameworks in the context of their RRPs; stresses the importance of reforms that intend to increase minimum wage levels in consultation with social partners, aligning with the Directive on adequate minimum wages, and urges those Member States that have not yet done so to act on this issue; stresses the need for ambitious investments and reforms to create high-quality jobs, foster quality working conditions, combat poverty and labour market segmentation and strengthen social dialogue and collective bargaining in line with the EPSR;

Amendment 39

Motion for a resolution

Paragraph 4 c (new)

Motion for a resolutionAmendment
4c. Takes note of the Member States’ continued efforts to improve access to and quality of social services, such as the adoption of a National Map of Social Services to identify gaps in provision and determine investment needs, as well as investment in new healthcare facilities and telemedicine to bring services closer to patients, national health strategies to improve access to health services across countries, and measures to address healthcare workforce shortages and improve worker retention through training and incentives; calls on the Member States to deploy efforts to ensure universal access to quality essential services including water, sanitation, transport, financial services and digital communications; highlights that mental health is a key part of the EU’s socio-economic recovery and an occupational health priority; is concerned that some Member States have not included sufficient measures to ensure accessible, affordable, and high-quality mental health care in their NRRPs and calls on the Member States to integrate dedicated mental health strategies in future revisions of the NRRPs;

Amendment 40

Motion for a resolution

Paragraph 4 d (new)

Motion for a resolutionAmendment
4d. Welcomes the fact that the RRF presents an opportunity to strengthen public employment services and employment activation policies; calls for further discussion on how the costs of new services and their related costs will be covered after the end of the RRF;

Amendment 41

Motion for a resolution

Paragraph 6

Motion for a resolutionAmendment
6. Welcomes the fact that the RRF provides support for both reforms and investments in the Member States, but notes that a lot still remains to be done; is concerned that the short period for the remaining RRF implementation will not allow for the implementation of several planned important reforms and large investments;6. Welcomes the fact that the RRF provides support for both reforms and investments in the Member States, but notes that a lot still remains to be done; stresses that delays and absorption capacity issues remain significant obstacles to fully realising the RRF’s potential benefits; is concerned that the short period for the remaining RRF implementation will not allow for the implementation of several planned important reforms and large investments, underscoring the need for more focused and accelerated action to ensure that the full potential of the RRF is achieved, especially in critical areas for long-term stability, growth and social cohesion; calls on the Member States to ramp up implementation and to increase their use of technical guidance via the Commission and under the Technical Support Instrument;

Amendment 42

Motion for a resolution

Paragraph 7

Motion for a resolutionAmendment
7. Highlights that prioritising RRF implementation, the lack of administrative capacity in many Member States and challenges posed by global supply chains have contributed to the delayed implementation of cohesion policy; recalls the need to respect the additionality principle and appeals against the crowding out or replacement of cohesion policy by the RRF or other temporary instruments;7. Highlights that prioritising RRF implementation, significant additional REACT-EU resources made available for the same period, the lack of administrative capacity in many Member States and challenges posed by global supply chains, as well as the end date of 31 December 2023 for the 2014-2020 cohesion eligibility period, have contributed to the delayed implementation of cohesion policy; recalls that, in line with the additionality principle, the crowding out or replacement of cohesion policy by the RRF or other temporary instruments should be avoided; stresses, in this regard, the importance of the Commission providing analysis on how much genuine new social investment has been created under the NRRPs;

Amendment 43

Motion for a resolution

Paragraph 7 a (new)

Motion for a resolutionAmendment
7a. Recalls, in this regard, the importance of the European Social Fund Plus, which aims to achieve high employment, fair social protection, a skilled and resilient workforce, and inclusive/cohesive societies as key in eradicating poverty, and stresses the need for synergies with RRF spending under the relevant pillars; stresses, further, that the Commission should identify ways to help Member States accelerate the use of EU funds and improve absorption, while respecting sound financial management;

Amendment 44

Motion for a resolution

Paragraph 10

Motion for a resolutionAmendment
10. Welcomes the possibility of using RRF funding to contribute to the objectives of the Strategic Technologies for Europe Platform (STEP) by supporting investments in critical technologies in the EU in order to boost its industrial competitiveness;10. Welcomes the possibility of using RRF funding to contribute to the objectives of the Strategic Technologies for Europe Platform (STEP) by supporting investments in critical technologies in the EU and addressing shortages of labour and skills critical for quality jobs in these areas, in close cooperation with social partners, in order to boost its industrial competitiveness while ensuring workers’ rights and reducing gender gaps in the technology sector;

Amendment 45

Motion for a resolution

Paragraph 13

Motion for a resolutionAmendment
13. Notes that only 13 Member States have requested loans and that EUR 92 billion of the EUR 385.8 billion available will remain unused since this amount was not committed by the deadline of 31 December 2023; takes note of the fact that loans were attractive for Member States that faced higher borrowing costs on the financial markets or that sought to compensate for a reduction in RRF grants; recalls that Parliament had advocated for a higher share of grants than loans and considers that a political discussion is needed on the use of unspent funds in the light of tight public budgets;13. Regrets the fact that only 13 Member States have requested loans and that EUR 92 billion of the EUR 385.8 billion available will remain unused since this amount was not committed by the deadline of 31 December 2023; takes note of the fact that loans were attractive for Member States that faced higher borrowing costs on the financial markets or that sought to compensate for a reduction in RRF grants; recalls that Parliament had advocated for a higher share of grants than loans and considers that a political discussion is needed on the use of unspent funds in the light of tight public budgets and a significant need for financial support to a number of areas, in particular poverty eradication, social inclusion, housing provision, public and social services, strengthening of social dialogue, quality job creation and skilling policies, including green and digital skills;

Amendment 46

Motion for a resolution

Paragraph 16 a (new)

Motion for a resolutionAmendment
16a. Recalls that the RRF, in line with Article 19(3)(c) of the RRF Regulation and Annex V, paragraph 2.3 of Annex V to that Regulation, requires the Commission to assess Member State NRRPs’ relevance, effectiveness, efficiency and coherence, taking into account criteria including their contribution to strengthening the growth potential, job creation, and economic, social and institutional resilience of the Member State, contributing to the implementation of the EPSR, including through the promotion of policies for children and youth, and to mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union; notes that this criterion requires the highest score of the assessment;

Amendment 47

Motion for a resolution

Paragraph 18

Motion for a resolutionAmendment
18. Welcomes the fact that all Member States have surpassed the targets for the green (37 %) and the digital transitions (20 %), with average expenditure towards climate and digital objectives of the RRF as a whole standing at 42 % and 26 % respectively; notes that the ECA has cast doubt on how the implementation of RRF measures has contributed to the green transition and has recommended improvements to the methodologies used to estimate the climate impact; highlights the fact that the same methodological deficiencies exist across all pillars of the RRF;18. Welcomes the fact that all Member States have surpassed the targets for the green (37 %) and the digital transitions (20 %), with average expenditure towards climate and digital objectives of the RRF as a whole standing at 42 % and 26 % respectively; notes that the ECA has cast doubt on how the implementation of RRF measures has contributed to the green transition and has recommended improvements to the methodologies used to estimate the climate impact; highlights the fact that the same methodological deficiencies exist across all pillars of the RRF and calls on the Commission to apply the ECA’s recommendations horizontally; emphasises the importance of the indicators related to the implementation of the EPSR principles and action plan; calls on the Commission to collaborate with Parliament, within the recovery and resilience dialogue, in order to review social indicators in line with the Porto Declaration, and calls on the Commission to consult social partners and civil society;

Amendment 48

Motion for a resolution

Paragraph 19

Motion for a resolutionAmendment
19. Notes the tangible impact that the RRF could have on social objectives, with Member States planning to spend around EUR 163 billion; stresses the need to accelerate investments in the development of rural and remote areas, social protection and the integration of vulnerable groups, and youth employment, where expenditure is lagging behind; calls for an in-depth evaluation by the Commission, under the Recovery and Resilience Scoreboard, of the projects and reforms related to education and young people implemented by Member States under the RRF;19. Notes the tangible impact that the RRF can have on social objectives, with Member States planning to spend around EUR 163 billion, representing about 25 % of the estimated total expenditure, and notes that to date, the Commission has disbursed around EUR 269 billion under the RRF in grants, loans and pre-financing; notes that following the revisions to NRRPs, almost 30 % of the estimated social expenditure is dedicated to investments and reforms in education and childcare and to health and long-term care respectively, while 25 % is dedicated to employment and skills and the rest to social policies1a; calls on the Member States to target at least 30 % of RRF spending under the relevant pillars towards social investments by the payment deadline;
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1a COM(2024)0474, p. 19.

Amendment 49

Motion for a resolution

Paragraph 19 a (new)

Motion for a resolutionAmendment
19a. Stresses the need to accelerate investments in strengthening social protection and public social services, adequate pensions, long-term care, availability and affordability of housing, in particular social housing, tackling poverty and social exclusion – in particular child poverty – early childhood education and care, adult vocational and educational training and skills development, the inclusion of groups in vulnerable situations, such as women, children, single-parent families, people with disabilities, migrants, Roma, LGBTIQ people, young people and older people, supporting youth employment, the modernisation of labour market institutions, including skills forecasting and social dialogue, and the development of rural and remote areas where expenditure is lagging behind; calls for an evaluation by the Commission, under the Recovery and Resilience Scoreboard, to track the effectiveness of social investments;

Amendment 50

Motion for a resolution

Paragraph 20

Motion for a resolutionAmendment
20. Welcomes the contributions made under the smart, sustainable and inclusive growth pillar, in particular to competitiveness and support for SMEs; notes the need for an acceleration of investments in transnational cooperation, support for enterprises, and regulatory changes for smart, sustainable and inclusive growth, which are lagging behind;20. Welcomes the contributions made under the smart, sustainable and inclusive growth pillar, in particular to competitiveness and support for SMEs; notes the need for an acceleration of investments in transnational cooperation, support for enterprises and workers, and regulatory changes for smart, sustainable and inclusive growth, which are lagging behind; stresses that an inclusive recovery should also prioritise the social economy as a key driver of sustainable and equitable growth;

Amendment 51

Motion for a resolution

Paragraph 20 a (new)

Motion for a resolutionAmendment
20a. Recalls that equality between women and men is a founding value of the EU as enshrined in the Treaties; regrets, therefore, the fact that gender equality is not one of the pillars of the RRF Regulation; recalls that NRRPs should include measures that contribute to gender equality and equal opportunities for all, in line with the EPSR, so as to promote women’s labour market participation and reduce gender-based segmentation in the labour market; welcomes the fact that the revised NRRPs contain 136 (sub-) measures with a focus on gender equality and notes the positive impact of other reforms and investments whose implementation can significantly contribute to gender equality, such as measures to promote work-life balance, including access to childcare and care for dependent persons and the development of digital skills; regrets the fact that two Member States did not include any measures explicitly aimed at contributing to gender equality in their NRRPs and that a number of other Member States included a relatively low number of these;

Amendment 52

Motion for a resolution

Paragraph 28

Motion for a resolutionAmendment
28. Urges the Member States to increase their efforts to address administrative bottlenecks and provide sufficient administrative capacity to accelerate RRF implementation in view of the 2026 deadline and to avoid concentrating RRF projects in more developed regions and capitals by enabling RRF funds to flow into projects in the most vulnerable regions, thereby serving the RRF’s objective to enhance the EU’s social, territorial and economic cohesion; calls for the automatic 12-month extension of projects that have an implementation rate of at least 20 % before the 2026 deadline; welcomes the possibility to establish a prioritisation and transfer system after the 2026 deadline in order to allow for the finalisation of ongoing projects through other funding schemes, including the European Investment Fund and a possible new European competitiveness fund;28. Urges the Member States to increase their efforts to address administrative bottlenecks and provide sufficient administrative capacity to accelerate RRF implementation in view of the 2026 deadline and to avoid concentrating RRF projects in more developed regions and capitals by enabling RRF funds to flow into projects in the most vulnerable regions, thereby serving the RRF’s objective to enhance the EU’s social, territorial and economic cohesion; calls for the automatic 18-month extension of projects that have an implementation rate of at least 20 % before the 2026 deadline; welcomes the possibility to establish a prioritisation and transfer system after the 2026 deadline in order to allow for the finalisation of ongoing projects through other funding schemes, including the European Investment Fund and a possible new European competitiveness fund;

Amendment 53

Motion for a resolution

Paragraph 39

Motion for a resolutionAmendment
39. Regrets the insufficient involvement of local and regional authorities (LRAs), civil society organisations, social partners, national parliaments and other relevant stakeholders in the design, revision or implementation of NRRPs; recalls that the participation of LRAs, national authorities and those responsible for developing these policies is crucial for the success of the RRF, as stated in Article 28 of the RRF Regulation; recalls that Parliament supported a binding provision in the RRF to establish a multilevel dialogue to engage relevant stakeholders and discuss the preparation and implementation of NRRPs with them, with a clear consultation period; calls, therefore, for the maximum possible stakeholder involvement in the implementation of NRRPs, in accordance with the national legal framework and based on clear and transparent principles;39. Regrets the insufficient involvement, in some Member States, of local and regional authorities (LRAs), civil society organisations, social partners, national parliaments and other relevant stakeholders in the design, revision or implementation of NRRPs, as set out in Article 18(4)(q) of the RRF Regulation, and stresses the importance of social partner involvement in measures concerning labour and social policies; recalls that the participation of LRAs, national authorities and those responsible for developing these policies is crucial for the success of the RRF, as stated in Article 28 of the RRF Regulation; recalls that Parliament supported a binding provision in the RRF to establish a multilevel dialogue to engage relevant stakeholders and discuss the preparation and implementation of NRRPs with them, with a clear consultation period; calls, therefore, for the maximum possible stakeholder involvement in the implementation of NRRPs, ensuring a comprehensive and transparent engagement process, in accordance with the national legal framework and based on clear and transparent principles; believes that stakeholder involvement must be qualitative as well as quantitative, including active participation in monitoring and evaluation processes, and recalls that relevant stakeholders should also be consulted before revised plans are authorised;

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

Date adopted31.3.2025
Result of final vote+: –: 0:40 11 1
Members present for the final voteMaravillas Abadía Jover, Grégory Allione, Nikola Bartůšek, Vilija Blinkevičiūtė, Rachel Blom, Andrzej Buła, Estelle Ceulemans, Leila Chaibi, Henrik Dahl, Johan Danielsson, Marie Dauchy, Mélanie Disdier, Elena Donazzan, Gheorghe Falcă, Chiara Gemma, Niels Geuking, Isilda Gomes, Alicia Homs Ginel, Sérgio Humberto, Irena Joveva, Martine Kemp, Katrin Langensiepen, Miriam Lexmann, Marit Maij, Idoia Mendia, Maria Ohisalo, João Oliveira, Aodhán Ó Ríordáin, Dennis Radtke, Liesbet Sommen, Villy Søvndal, Pál Szekeres, Georgiana Teodorescu, Romana Tomc, Jana Toom, Raffaele Topo, Brigitte van den Berg, Marie-Pierre Vedrenne, Mariateresa Vivaldini, Petar Volgin, Jan-Peter Warnke, Séverine Werbrouck
Substitutes present for the final voteBorys Budka, Vivien Costanzo, Andi Cristea, Klára Dobrev, Estrella Galán, Rudi Kennes, Pierfrancesco Maran, Benedetta Scuderi, Andrea Wechsler, Angelika Winzig
Members under Rule 216(7) present for the final voteSalvatore De Meo

OPINION OF THE COMMITTEE ON THE ENVIRONMENT, CLIMATE AND FOOD SAFETY

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the implementation report on the Recovery and Resilience Facility

(2024/2085(INI))

Rapporteur for opinion: Jonas Sjöstedt

AMENDMENTS

The Committee on the Environment, Climate and Food Safety submits the following to the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible:

Amendment 1

Motion for a resolution

Citation 6 a (new)

Motion for a resolutionAmendment
– having regard to the Commission communication of 11 December 2019 entitled ‘The European Green Deal’ (COM(2019)0640),

Amendment 2

Motion for a resolution

Citation 6 b (new)

Motion for a resolutionAmendment
– having regard to its resolution of 15 January 2020 on the European Green Deal1a, ______________ 1a OJ C 270, 7.7.2021, p. 2.

Amendment 3

Motion for a resolution

Citation 6 c (new)

Motion for a resolutionAmendment
– having regard to the Commission communication of 11 March 2020 entitled ‘A new Circular Economy Action Plan – For a cleaner and more competitive Europe’ (COM(2020)0098),

Amendment 4

Motion for a resolution

Citation 6 d (new)

Motion for a resolutionAmendment
– having regard to its resolution of 10 February 2021 on the New Circular Economy Action Plan1a, ______________ 1a OJ C 465, 17.11.2021, p. 11.

Amendment 5

Motion for a resolution

Recital A

Motion for a resolutionAmendment
A. whereas reforms and investments under the Recovery and Resilience Facility (RRF) help to make the EU more resilient and less dependent by diversifying key supply chains and thereby strengthening the strategic autonomy of the EU; whereas reforms and investments under the RRF also generate European added value;A. whereas reforms and investments under the Recovery and Resilience Facility (RRF) aim to strengthen the Union’s economic resilience, including by supporting the green transition by, among other things, contributing to the achievement of the Union’s 2030 climate targets, to make the Union less dependent by diversifying key supply chains, and thereby strengthening the strategic autonomy of the Union; whereas reforms and investments under the RRF also generate European added value;

Amendment 6

Motion for a resolution

Recital A a (new)

Motion for a resolutionAmendment
Aa. whereas the Commission should ensure consistency between the RRF and other EU financial instruments in order to maximise the effectiveness of public investment;

Amendment 7

Motion for a resolution

Recital D a (new)

Motion for a resolutionAmendment
Da. whereas an investment-based green transition is key to achieving the much-welcomed and ambitious climate agenda set out in the Fit for 55 legislative package, and the RRF is a key financial instrument for implementing such a transition; whereas climate resilience is crucial for the long-term stability of Europe’s economy and society, and investments from the Recovery and Resilience Facility are an opportunity to strengthen adaptation to climate change; whereas extreme weather events, such as floods, fires and droughts, are constantly increasing and pose a serious threat to EU ecosystems, agriculture and infrastructure; whereas the RRF should finance measures to strengthen Member States’ resilience to climate disasters and reduce their economic and social impact, including measures to increase energy efficiency and reduce energy poverty;

Amendment 8

Motion for a resolution

Recital D b (new)

Motion for a resolutionAmendment
Db. whereas particular attention should be paid to the coordination of investments in health and the environment, in particular through projects that reduce the impact of pollution on citizens’ health; whereas the RRF should support projects that contribute to better air quality, access to clean water and reduced exposure to toxic substances, thereby reducing health costs and the long-term economic burden on national budgets;

Amendment 9

Motion for a resolution

Recital E

Motion for a resolutionAmendment
E. whereas robust audit and control systems are crucial to protect the financial interests of the EU throughout the life cycle of the RRF; whereas the milestones commonly known as ‘super milestones’, in particular related to the rule of law, had to be fulfilled prior to any RRF disbursements;E. whereas good governance and robust audit and control systems are crucial to protect the financial interests of the Union throughout the life cycle of the RRF and maximise the RRF’s impact, in particular with regard to climate and environmental policies; whereas the milestones commonly known as ‘super milestones’, in particular related to the rule of law, had to be fulfilled prior to any RRF disbursements;

Amendment 10

Motion for a resolution

Recital G a (new)

Motion for a resolutionAmendment
Ga. whereas ECA special report 14/2024 revealed shortcomings in the design of the RRF and the implementation of green transition measures, leading to overestimations of amounts allocated to climate action; whereas the ECA ‘found weak indications on how the implementation of RRF measures contributes to the green transition’;

Amendment 11

Motion for a resolution

Subheading 1

Motion for a resolutionAmendment
Strengthening Europe’s social and economic resilienceStrengthening Europe’s social, economic, environmental and climate resilience

Amendment 12

Motion for a resolution

Paragraph 1

Motion for a resolutionAmendment
1. Highlights the fact that the RRF is an unprecedented instrument of solidarity in the light of two unprecedented crises and a cornerstone of the NGEU instrument, ending in 2026; highlights the stabilising effect of the RRF for Member States at a time of great economic uncertainty, as it mitigates negative economic and social consequences and supports governments by contributing to the implementation of the European Pillar of Social Rights;1. Highlights the fact that the RRF is an unprecedented instrument of solidarity in the light of two unprecedented crises and a cornerstone of the NGEU instrument, ending in 2026; recalls that the RRF was set up for Member States with the aim of having a stabilising effect at a time of great economic uncertainty, in order to mitigate negative economic and social consequences and support governments by contributing to the implementation of the European Pillar of Social Rights; recalls, too, that one of the core goals of the RRF was to strengthen the environmental resilience and sustainable transition of EU economies;

Amendment 13

Motion for a resolution

Paragraph 2

Motion for a resolutionAmendment
2. Welcomes the fact that the RRF has provided temporary additional fiscal space since the pandemic and contributed to the prevention of divergences between Member States with diverse fiscal space; notes the Commission finding that the RRF has led to a sustained increase in investments across the EU and that the Commission expects the RRF to have a lasting impact across the EU beyond 2026 given its synergies with other EU funds;2. Acknowledges that the RRF has contributed to providing temporary additional fiscal space since the pandemic; emphasises the importance of additional financial and technical support for Member States whose energy systems require an accelerated adaptation to the green transition, carbon neutral energy systems and energy independence in countries with a high degree of dependence on fossil fuels, in order to ensure the resilience of the energy sector and enable the achievement of decarbonisation goals;

Amendment 14

Motion for a resolution

Paragraph 2 a (new)

Motion for a resolutionAmendment
2a. Recalls that the RRF was initially introduced as targeted funding under the Green Deal communication, primarily aimed at industrial decarbonisation and the energy transition, but that, in response to the devastating economic impact of the COVID-19 pandemic, it was repurposed into a horizontal relief instrument; is concerned, however, that this development left the Green Deal, and most notably the Fit for 55 legislative package, without a proper financial envelope to support industries;

Amendment 15

Motion for a resolution

Paragraph 3

Motion for a resolutionAmendment
3. Takes note of the Commission’s projection in 2024 concerning the potential of NGEU’s impact on the EU’s real gross domestic product (GDP) by 2026, which is significantly lower than its simulation in 2020 (1.4 % compared with 2.3 %) and of the estimation that NGEU could lead to a sizeable, short-run increase in EU employment by up to 0.8 %; notes with satisfaction that long-term benefits of the RRF on GDP could be three to six times bigger than the NGEU budget disbursed, depending on the productivity effects of RRF investment; highlights, however, the difficulty of quantifying the precise social and economic impact of the RRF, as the impact of reforms only becomes clear following a delay; notes the Commission’s finding that approximately half of the expected increase in public investment between 2019 and 2025 is related to investment financed by the EU budget, particularly by the RRF;3. Takes note of the Commission’s 2024 projection concerning the potential of NGEU’s impact on the EU’s real gross domestic product (GDP) by 2026, which has been revised downwards to 1.4 % by 2026 compared to the initial estimate of 2.3 %, highlighting uncertainty as to the prognosis, and of the estimation that NGEU could lead to a sizeable, short-run increase in EU employment by up to 0.8 %; notes with satisfaction that long-term benefits of the RRF on GDP could be three to six times bigger than the NGEU budget disbursed, depending on the productivity effects of RRF investment; highlights, however, the difficulty of quantifying the precise social and economic impact of the RRF, as the impact of reforms only becomes clear following a delay; notes, in this regard, the uncertainty associated with the effects of ongoing investigations by the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF) into wrongdoing related to RRF spending and potential misuse of funds, including in relation to green transition measures; notes the Commission’s finding that approximately half of the expected increase in public investment between 2019 and 2025 is related to investment financed by the EU budget, particularly by the RRF;

Amendment 16

Motion for a resolution

Paragraph 4

Motion for a resolutionAmendment
4. Notes that the RRF has incentivised the implementation of some reforms included in the country-specific recommendations made in the context of the European Semester and that the RRF Scoreboard is used to monitor the progress made towards achieving milestones and targets, as well as compliance with horizontal principles, and in particular the six pillars, namely the green transition, the digital transformation, smart, sustainable and inclusive growth, social and territorial cohesion, health, economic, social and institutional resilience, and policies for the next generation, children and young people, including education;4. Notes that the RRF has incentivised the implementation of some reforms included in the country-specific recommendations made in the context of the European Semester and that the RRF Scoreboard is used to monitor the progress made towards achieving milestones and targets, as well as compliance with horizontal principles, and in particular the six pillars, namely the green transition, the digital transformation, smart, sustainable and inclusive growth, social and territorial cohesion, health, economic, social and institutional resilience, and policies for the next generation, children and young people, including education; notes, however, that while the scoreboard facilitates monitoring of progress, the ECA’s conclusions highlight that, ‘the green transition reporting presented in the RRF Scoreboard is confusing’ and ‘does not provide users with complete and reliable information about the actual amounts spent on the green transition’;

Amendment 17

Motion for a resolution

Paragraph 6

Motion for a resolutionAmendment
6. Welcomes the fact that the RRF provides support for both reforms and investments in the Member States, but notes that a lot still remains to be done; is concerned that the short period for the remaining RRF implementation will not allow for the implementation of several planned important reforms and large investments;6. Welcomes the fact that the RRF provides support for both reforms and investments in the Member States, but notes that a lot still remains to be done; is concerned that the short period for the remaining RRF implementation will not allow for the implementation of several planned important reforms and large investments impacted by the war in Ukraine and disruptions in the value chain; notes that the sustainability transformation needs to be sped up and the investment gap tackled, as Europe is dependent on critical resources, and that additional time for implementation is needed for riskier investments in sustainable technologies and decarbonisation in particular;

Amendment 18

Motion for a resolution

Paragraph 8

Motion for a resolutionAmendment
8. Recalls that, in reaction to Russia’s war of aggression against Ukraine, the REPowerEU revision contributes to Europe’s energy security by reducing its dependence on fossil fuels, diversifying its energy supplies, tackling energy poverty and investing in energy savings; emphasises that through REPowerEU, an additional EUR 20 billion in grants was made available in 2023, including EUR 8 billion generated from the front-loading of Emissions Trading System allowances and EUR 12 billion from the Innovation Fund; highlights Parliament’s successes in negotiations, in particular on the provisions on replenishing the Innovation Fund, the 30 % funding target for cross-border projects, the focus of investments on tackling energy poverty for vulnerable households, small and medium-sized enterprises (SMEs) and micro-enterprises, and the flexible use of unspent cohesion funds from the 2014-2020 MFF and of up to 7.5 % of national allocations under the 2021-2027 MFF;8. Recalls that, in reaction to Russia’s war of aggression against Ukraine, the REPowerEU revision contributes to Europe’s energy security by reducing its dependence on fossil fuels, diversifying its energy supplies, tackling energy poverty and investing in energy savings; emphasises that through REPowerEU, an additional EUR 20 billion in grants was made available in 2023, including EUR 8 billion generated from the front-loading of Emissions Trading System allowances and EUR 12 billion from the Innovation Fund; highlights Parliament’s successes in negotiations, in particular on the provisions on replenishing the Innovation Fund, the 30 % funding target for cross-border projects, the focus of investments on tackling energy poverty for vulnerable households, small and medium-sized enterprises (SMEs) and micro-enterprises, and the flexible use of unspent cohesion funds from the 2014-2020 MFF and of up to 7.5 % of national allocations under the 2021-2027 MFF; emphasises that sustainable investments should not only be limited to energy efficiency and networks or mobility, as a new competitive economy is built on circular and low-carbon solutions;

Amendment 19

Motion for a resolution

Paragraph 11

Motion for a resolutionAmendment
11. Recalls the application of the ‘do no significant harm’ (DNSH) principle for all reforms and investments supported by the RRF, with a targeted derogation under REPowerEU for energy infrastructure and facilities needed to meet immediate security of supply needs; encourages the Commission to assess the feasibility of a more uniform interpretation of the DNSH principle between the RRF and the EU taxonomy for sustainable activities, while taking into account the specificities of the RRF as a public expenditure programme;11. Recalls the application of the ‘do no significant harm’ (DNSH) principle for all reforms and investments supported by the RRF, with a targeted derogation under REPowerEU for energy infrastructure and facilities needed to meet immediate security of supply needs; encourages the Commission to assess the feasibility of a more uniform interpretation of the DNSH principle between the RRF and the EU taxonomy for sustainable activities, especially for environmental targets in areas such as biodiversity, to reduce the administrative burden for public authorities and the final recipients of the funds, and to enhance the overall efficiency of fund allocation, while taking into account the specificities of the RRF as a public expenditure programme; encourages the Member States to conduct proper impact assessments for projects and investments, and to share best practices from implementing the DNSH principle to diminish complexity and uncertainty in its application;

Amendment 20

Motion for a resolution

Paragraph 13

Motion for a resolutionAmendment
13. Notes that only 13 Member States have requested loans and that EUR 92 billion of the EUR 385.8 billion available will remain unused since this amount was not committed by the deadline of 31 December 2023; takes note of the fact that loans were attractive for Member States that faced higher borrowing costs on the financial markets or that sought to compensate for a reduction in RRF grants; recalls that Parliament had advocated for a higher share of grants than loans and considers that a political discussion is needed on the use of unspent funds in the light of tight public budgets;13. Notes that only 13 Member States have requested loans and that EUR 92 billion of the EUR 385.8 billion available will remain unused since this amount was not committed by the deadline of 31 December 2023; takes note of the fact that loans were attractive for Member States that faced higher borrowing costs on the financial markets or that sought to compensate for a reduction in RRF grants; recalls that Parliament had advocated for a higher share of grants than loans and considers that a political discussion is needed on the use of unspent funds in the light of tight public budgets; reiterates that the decarbonisation targets of the Green Deal, notably the Climate Law and the reforms under the Fit for 55 package, still need to be financially addressed;

Amendment 21

Motion for a resolution

Paragraph 14

Motion for a resolutionAmendment
14. Recalls the legal obligation to ensure full repayment of NGEU expenditure by 31 December 2058 at the latest; reminds the Council and the Commission of their legal commitment under the interinstitutional agreement concluded in 2020 to ensure a viable path to refinancing NGEU debt, including through sufficient proceeds from new own resources introduced after 2021 without any undue reduction in programme expenditure or investment instruments under the MFF; deplores the lack of progress made in this regard and urges the Council to adopt new own resources without delay;14. Recalls the legal obligation to ensure full repayment of NGEU expenditure by 31 December 2058 at the latest; reminds the Council and the Commission of their legal commitment under the interinstitutional agreement concluded in 20201a to ensure a viable path to refinancing NGEU debt, including through sufficient proceeds from new own resources introduced after 2021 without any undue reduction in programme expenditure or investment instruments under the MFF; deplores the lack of progress made in this regard and urges the Council to adopt new own resources without delay; regrets the flaws in the design of the RRF, in particular the lack of traceability, and in its implementation; recalls the need to carry out a detailed analysis of the adequacy and performance of the RRF model when developing future financial instruments; underlines, in any case, that the RRF can only serve as a model for future financial instruments once its design flaws have been addressed; underlines, however, that any further joint borrowing with a decarbonisation objective should be much more targeted to specific priorities and measure the decrease in greenhouse gas emissions;
_________________
1a Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (OJ L 433I, 22.12.2020, p. 28, ELI: http://data.europa.eu/eli/agree_interinstit/2020/1222/oj).

Amendment 22

Motion for a resolution

Paragraph 18

Motion for a resolutionAmendment
18. Welcomes the fact that all Member States have surpassed the targets for the green (37 %) and the digital transitions (20 %), with average expenditure towards climate and digital objectives of the RRF as a whole standing at 42 % and 26 % respectively; notes that the ECA has cast doubt on how the implementation of RRF measures has contributed to the green transition and has recommended improvements to the methodologies used to estimate the climate impact; highlights the fact that the same methodological deficiencies exist across all pillars of the RRF;18. Acknowledges that all Member States have surpassed the targets for the green (37 %) and the digital transitions (20 %), with average expenditure towards climate and digital objectives of the RRF as a whole standing at 42 % and 26 %, respectively; notes, however, that malpractice in the management of the RRF has led the ECA to cast doubt on how the implementation of many RRF measures has contributed to the green transition, with potential large overestimations from projects lacking verifiable environmental benefits, and notes that the ECA has recommended improvements to the methodologies used to estimate the climate impact; also notes, in particular, the ECA’s finding that, while the green transition objective has a broader scope than climate action, including biodiversity and environment, the RRF tracks only climate-related measures while the tracking system for environmental objectives is not used; highlights the fact that the same methodological deficiencies exist across all pillars of the RRF; urges the Commission to address the design and implementation shortcomings of the RRF as reported by the ECA; reiterates the need for sound governance of EU financial instruments and the need to ensure that funding for climate action investments under the RRF is spent on new projects, rather than being used for recurrent national government expenditure;

Amendment 23

Motion for a resolution

Paragraph 20

Motion for a resolutionAmendment
20. Welcomes the contributions made under the smart, sustainable and inclusive growth pillar, in particular to competitiveness and support for SMEs; notes the need for an acceleration of investments in transnational cooperation, support for enterprises, and regulatory changes for smart, sustainable and inclusive growth, which are lagging behind;20. Welcomes the contributions made under the smart, sustainable and inclusive growth pillar, in particular to competitiveness and support for SMEs; notes the need for an acceleration of investments to tackle the persistent investment gap in order to create a new sustainable and competitive economy in Europe, while paying attention to transnational cooperation, support for enterprises, and regulatory changes for smart, sustainable and inclusive growth;

Amendment 24

Motion for a resolution

Paragraph 24

Motion for a resolutionAmendment
24. Notes the high administrative burden and complexity brought by the RRF; stresses the considerable efforts required at national level to implement the RRF in parallel with structural funds; notes that between 2021 and 2024 the Technical Support Instrument supported more than 500 RRF-related reforms in the Member States, directly or indirectly related to the preparation, amendment, revision and implementation of the NRRPs; takes note of the Commission guidance of July 2024 with simplifications and clarifications to streamline RRF implementation but expects the Commission to act swiftly on its promise to cut the administrative burden by 25 %;24. Notes the high administrative burden and complexity brought by the RRF; stresses the considerable efforts required at national level to implement the RRF in parallel with structural funds, while insisting on the fundamental need for rigorous financial oversight; notes that between 2021 and 2024 the Technical Support Instrument supported more than 500 RRF-related reforms in the Member States, directly or indirectly related to the preparation, amendment, revision and implementation of the NRRPs; stresses the need to strengthen administrative capacity in Member States with limited institutional resources, including additional technical and advisory support from the EU; takes note of the Commission guidance of July 2024 with simplifications and clarifications to streamline RRF implementation but expects the Commission to act swiftly on its promise to cut the administrative burden by 25 %, without jeopardising high environmental or social standards and without being detrimental to sound governance, better traceability and proper control mechanisms related to the disbursement of funds for green investments, in order to avoid misuse and underperformance of funds;

Amendment 25

Motion for a resolution

Paragraph 24 a (new)

Motion for a resolutionAmendment
24a. Recalls that EU-level ‘off-the-shelf instruments’ were introduced in the 2014-2020 MFF to make EU funds more efficient and accessible to local authorities and regions, especially to those with lower administrative capacities, in particular to support investments in climate change, energy efficiency and green infrastructure;

Amendment 26

Motion for a resolution

Paragraph 24 b (new)

Motion for a resolutionAmendment
24b. Highlights the fact that the Strategic Technologies for Europe Platform (STEP) Regulation allows Member States to amend their recovery plans to allocate an additional amount of up to 6 % of their RRF allocations as cash contribution exclusively to STEP priorities (including clean technologies) via the InvestEU Member State compartment;

Amendment 27

Motion for a resolution

Paragraph 24 c (new)

Motion for a resolutionAmendment
24c. Calls on the Commission, as the end of the RRF deployment window approaches, to mainstream the spirit and the implementation rules of ‘off-the-shelf instruments’ and the STEP initiative, including within the Member State compartment, risk capital and guarantee services, to accelerate the green transition, particularly in regions with high fiscal constraints and areas impacted by the energy crisis exacerbated by Russia’s aggression; considers that this approach should enable more effective deployment of EU funds, while promoting private-sector involvement;

Amendment 28

Motion for a resolution

Paragraph 25

Motion for a resolutionAmendment
25. Believes that implementation delays underscore the risk that measures for which RRF funding has been paid will not be completed by the 2026 payment deadline; recalls the Commission’s statement at the Recovery and Resilience Dialogue (RRD) of 16 September 2024 that it will not reimburse non-implemented projects but considers it a shortcoming that RRF funds paid for milestones and targets assessed as fulfilled cannot be recovered if related measures are not eventually completed;25. Believes that implementation delays underscore the risk that measures for which RRF funding has been paid will not be completed by the 2026 payment deadline; recalls the Commission’s statement at the Recovery and Resilience Dialogue (RRD) of 16 September 2024 that it will not reimburse non-implemented projects but considers it a shortcoming affecting its credibility, including with regard to green investment, that RRF funds paid for milestones and targets assessed as fulfilled cannot be recovered if related measures are not eventually completed;

Amendment 29

Motion for a resolution

Paragraph 31

Motion for a resolutionAmendment
31. Welcomes the extensive work of the ECA in relation to the RRF and deems it important to thoroughly assess its findings, in particular its findings that milestones and targets are often rather vague and output-oriented and are therefore not fit to measure results and impacts, and its findings regarding the risks of double funding resulting from overlaps with other policies; notes that the Commission has accepted many but not all of the ECA’s recommendations;31. Welcomes the extensive work of the ECA in relation to the RRF and deems it important to thoroughly assess its findings, in particular its findings that milestones and targets are often rather vague and output-oriented and are therefore not fit to measure results and impacts, and its findings regarding the risks of double funding resulting from overlaps with other policies; regrets that the Commission has accepted many but not all of the ECA’s recommendations;

Amendment 30

Motion for a resolution

Paragraph 32 a (new)

Motion for a resolutionAmendment
32a. Is concerned that the implementation of the RRF allows practices described as greenwashing; highlights, in particular, the ECA’s finding that the climate coefficients do not allow an exact quantification of the expected climate contribution; notes that this is further aggravated by the structural problem related to the lack of data on actual expenditure and agrees with the ECA recommendation that this problem should be overcome through reporting on actual expenditure1a;
_________________
1a ECA special report 09/2022 of 30 May 2022 entitled ‘Climate spending in the 2014-2020 EU budget – Not as high as reported’.

Amendment 31

Motion for a resolution

Paragraph 33

Motion for a resolutionAmendment
33. Is concerned about persistent weaknesses in national reporting and control mechanisms, due in part to absorption pressure affecting the capacity to detect ineligible expenditure; regrets the reliance on manual cross-checks and self-declarations in the absence of interoperable IT tools and harmonised standards, which entail the risk that expenditure is declared twice;33. Is concerned about persistent weaknesses in national reporting and control mechanisms, due in part to absorption pressure affecting the capacity to detect ineligible expenditure; regrets the reliance on manual cross-checks and self-declarations in the absence of interoperable IT tools and harmonised standards, which entail the risk that expenditure is declared twice; reiterates its call to enhance scrutiny of the actual positive environmental impact of projects declared as green investments;

Amendment 32

Motion for a resolution

Paragraph 35

Motion for a resolutionAmendment
35. Highlights the important role of the European Public Prosecutor’s Office (EPPO) and OLAF in protecting the EU’s financial interests; welcomes the fact that EPPO investigations into RRF-related fraud and corruption cases have led to several arrests, indictments and seizures of RRF funds and expects the number of investigations (233 cases in 2024) to grow as RRF implementation advances;35. Highlights the important role of the EPPO and OLAF in protecting the EU’s financial interests; welcomes the fact that EPPO investigations into RRF-related fraud and corruption cases involving a total amount of over EUR 600 million have led to several arrests, indictments and seizures of RRF funds and expects the number of investigations (233 cases in 2024) to grow as RRF implementation advances, with the result that the relevant financial resources will not be available for green spending; calls on the EPPO and OLAF to continue their investigations, also in view of the need to ensure the proper use of European taxpayers’ contributions;

Amendment 33

Motion for a resolution

Paragraph 40

Motion for a resolutionAmendment
40. Stresses that decisions should be made at the level that is most appropriate; is convinced that the application of the partnership principle and a stronger involvement of LRAs could make project implementation more efficient, reduce disparities within Member States and bring about more viable cross-border projects;40. Stresses that decisions should be made at the level that is most appropriate; is convinced that the application of the partnership principle and a stronger involvement of LRAs could make project implementation more efficient, reduce disparities within Member States and bring about more viable cross-border projects; believes that LRAs should, if they so request, be empowered to manage funds effectively, particularly in the case of small-scale and community-driven projects, which can have a significant impact on achieving local climate and industry targets;

Amendment 34

Motion for a resolution

Paragraph 41

Motion for a resolutionAmendment
41. Believes that the combination of reforms and investments has proved successful but that a clearer link is needed between the two; insists that the level of ambition of NRRPs should be commensurate with the RRF timeline in order to ensure their successful implementation; urges the Commission to apply the lessons learned and the ECA’s observations, and to ensure that future performance-based instruments are designed also to measure results and impacts and not only outputs;41. Believes that the combination of reforms and investments is useful and that a clearer link is needed between the two; insists that the level of ambition of NRRPs should be commensurate with the RRF timeline in order to ensure their successful implementation; urges the Commission to apply the lessons learned and the ECA’s observations, and to ensure that future performance-based instruments are designed also to measure results and impacts and not only outputs and ensure sound governance, strict financial oversight and enhanced accountability mechanisms in order to prevent inefficiencies and misallocation of funds;

Amendment 35

Motion for a resolution

Paragraph 48

Motion for a resolutionAmendment
48. Notes the declared intention of the Commission to draw on the RRF experience when designing its proposals for the post-2027 EU funding programmes, due later this year; acknowledges that the independent ex post evaluation will come too late to feed into the process leading up to the next programming period, but expects the Commission and the co-legislators to take due account of the lessons learned from the RRF and of the recommendations of relevant stakeholders, in particular LRA, civil society organisations and social partners;48. Notes the declared intention of the Commission to draw on the RRF experience when designing its proposals for the post-2027 EU funding programmes, due later this year; acknowledges that the independent ex post evaluation will come too late to feed into the process leading up to the next programming period, but expects the Commission and the co-legislators to take due account of the lessons learned from the RRF and of the recommendations of relevant stakeholders, in particular LRA, civil society organisations and social partners; calls on the Commission to incorporate lessons learned from the shortcomings encountered in the RRF and to apply them to future financial instruments to ensure their sound governance and control;

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

Date adopted18.3.2025
Result of final vote+: –: 0:60 22 3
Members present for the final voteGrégory Allione, Vytenis Povilas Andriukaitis, Mathilde Androuët, Pascal Arimont, Bartosz Arłukowicz, Sakis Arnaoutoglou, Anja Arndt, Thomas Bajada, Alexander Bernhuber, Barbara Bonte, Stine Bosse, Lynn Boylan, Pascal Canfin, Laurent Castillo, Mohammed Chahim, Christophe Clergeau, Annalisa Corrado, Antonio Decaro, Ondřej Dostál, Viktória Ferenc, Pietro Fiocchi, Emma Fourreau, Heléne Fritzon, Gerben-Jan Gerbrandy, Hanna Gronkiewicz-Waltz, Roman Haider, Anja Hazekamp, Esther Herranz García, Martin Hojsík, Romana Jerković, Marc Jongen, Radan Kanev, Stefan Köhler, András Tivadar Kulja, Katri Kulmuni, Peter Liese, Javi López, César Luena, Elżbieta Katarzyna Łukacijewska, Ignazio Roberto Marino, Tilly Metz, Jana Nagyová, Jutta Paulus, Michele Picaro, Jessica Polfjärd, Carola Rackete, Massimiliano Salini, Silvia Sardone, Majdouline Sbai, Oliver Schenk, Lena Schilling, Jonas Sjöstedt, Sander Smit, Susana Solís Pérez, Claudiu-Richard Târziu, Marta Temido, Ingeborg Ter Laak, Flavio Tosi, Dimitris Tsiodras, Filip Turek, Ana Vasconcelos, Aurelijus Veryga, Kristian Vigenin, Alexandr Vondra, Emma Wiesner, Anna Zalewska, Milan Zver
Substitutes present for the final voteAdrian-George Axinia, Marie-Luce Brasier-Clain, Valérie Deloge, Sigrid Friis, Martin Häusling, Paolo Inselvini, Nora Junco García, Kateřina Konečná, Norbert Lins, Valentina Palmisano, Virgil-Daniel Popescu, Chloé Ridel, Raffaele Topo, Roberto Vannacci, Vlad Vasile-Voiculescu, Anders Vistisen
Members under Rule 216(7) present for the final voteElena Nevado del Campo, Villy Søvndal

OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM

for the Committee on Budgets and the Committee on Economic and Monetary Affairs

on the implementation report on the Recovery and Resilience Facility

(2024/2085(INI))

Rapporteur for opinion: Giuseppe Lupo

AMENDMENTS

The Committee on Transport and Tourism submits the following to the Committee on Budgets and the Committee on Economic and Monetary Affairs, as the committees responsible:

Amendment 1

Motion for a resolution

Citation 9 a (new)

Motion for a resolutionAmendment
– having regard to its resolution of 13 June 2023 on large transport infrastructure projects in the EU – implementation of projects and monitoring and control of EU funds1a,
_________________
1a OJ C, C/2024/481, 23.1.2024, ELI: http://data.europa.eu/eli/C/2024/481/oj.

Amendment 2

Motion for a resolution

Recital A

Motion for a resolutionAmendment
A. whereas reforms and investments under the Recovery and Resilience Facility (RRF) help to make the EU more resilient and less dependent by diversifying key supply chains and thereby strengthening the strategic autonomy of the EU; whereas reforms and investments under the RRF also generate European added value;A. whereas reforms and investments under the Recovery and Resilience Facility (RRF) help to make the EU more resilient over the medium term, while modernising EU economies through a value-for-money approach, and to make the EU less dependent, by diversifying key supply chains and thereby strengthening the strategic autonomy of the EU; whereas reforms and investments under the RRF also generate European added value; whereas RRF milestones and targets should be completed by 31 August 2026; whereas the effectiveness of the RRF could be diminished by incomplete or ineffective implementation of its milestones and targets;

Amendment 3

Motion for a resolution

Recital A a (new)

Motion for a resolutionAmendment
Aa. whereas the RRF plays a crucial role in supporting sustainable mobility investments and reforms, the transition to low-carbon transport and the goal of reducing transport-related emissions by 90 % by 2050; whereas investments in smart transport infrastructure, alternative fuels and digital mobility solutions under the RRF enhance connectivity and efficiency across the EU;

Amendment 4

Motion for a resolution

Recital A b (new)

Motion for a resolutionAmendment
Ab. whereas the RRF also supports the objectives of the forthcoming EU Industrial Action Plan for the Automotive Sector by fostering innovation and enhancing competitiveness; whereas all technologies that can contribute to achieving climate goals should be treated fairly, without preference or bias towards any particular technological solution; whereas it is essential to establish a level playing field that enables the best technologies to compete;

Amendment 5

Motion for a resolution

Recital C a (new)

Motion for a resolutionAmendment
Ca. whereas the grant component of NextGenerationEU (NGEU) will be repaid through the EU budget, and involves joint borrowing and risk sharing and therefore cannot be considered a cost-free measure; whereas the output gains from NGEU are still pending assessment by the Commission, including the potential impacts of NGEU on transport infrastructure, connectivity and mobility improvements;

Amendment 6

Motion for a resolution

Recital E a (new)

Motion for a resolutionAmendment
Ea. whereas the European Committee of the Regions highlighted that local and regional authorities have not been sufficiently involved, or have been excluded entirely, from the RRF implementation process; whereas, according to the RRF Regulation1a, Member States are required to consult local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders when preparing and implementing their national recovery and resilience plans (NRRPs), and to demonstrate how stakeholder input has been reflected; whereas, due to the tight time frame for drafting the NRRPs, most of these consultations were either rushed or did not occur at all, affecting the inclusiveness of the process; whereas the centralised governance structure of the RRF has at times limited the ability of certain regions and cities to access available support; ______________ 1a Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility, OJ L 57, 18.2.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/241/oj.

Amendment 7

Motion for a resolution

Recital E b (new)

Motion for a resolutionAmendment
Eb. whereas each NRRP had to dedicate at least 20 % of its total funding to projects contributing to the digital transition, but a share of total funding was directed towards the promotion of energy efficiency in all sectors, including transport; whereas energy efficiency has become a European priority in order to contribute to EU energy independence and security; whereas rail transport offers the best performance in terms of energy efficiency for both passenger and freight traffic;

Amendment 8

Motion for a resolution

Recital E c (new)

Motion for a resolutionAmendment
Ec. whereas each NRRP had to dedicate at least 37 % of its total funding to climate objectives, and ‘sustainable mobility’ was one of the policy areas in which the most progress was expected; whereas these measures account for more than one quarter of climate expenditure financed by the RRF under the green transition pillar; whereas certain Member States used the RRF to promote sustainable urban development, including low-emission zones, public transport and refuelling or recharging infrastructure for clean vehicles; whereas the European Alternative Fuels Observatory highlighted the need for 410 000 new charging points annually to meet the Commission’s 2030 target of 3.5 million points; whereas the total number of charging points was only 891 500 in the first half of 2024;

Amendment 9

Motion for a resolution

Recital E d (new)

Motion for a resolutionAmendment
Ed. whereas there was no obligation under the RRF for Member States to include cross-border projects in their NRRPs, which could have facilitated the deployment of the Trans-European Transport Network (TEN-T); whereas, despite cross-border and multi-country projects being encouraged for their potential to enhance European integration and resilience, only a few Member States chose to include such investments, particularly in railway and waterway infrastructure aimed at developing European corridors; whereas this is regrettable given the substantial investment required for rail, especially high-speed, and waterway development by 2030, which far exceeds the capacity of public funding in the Member States;

Amendment 10

Motion for a resolution

Paragraph 1

Motion for a resolutionAmendment
1. Highlights the fact that the RRF is an unprecedented instrument of solidarity in the light of two unprecedented crises and a cornerstone of the NGEU instrument, ending in 2026; highlights the stabilising effect of the RRF for Member States at a time of great economic uncertainty, as it mitigates negative economic and social consequences and supports governments by contributing to the implementation of the European Pillar of Social Rights;1. Highlights the fact that the RRF is an unprecedented instrument of solidarity in the light of two unprecedented crises and a cornerstone of the NGEU instrument, ending in 2026; highlights the stabilising effect of the RRF for Member States at a time of great economic uncertainty, as it mitigates negative economic and social consequences and supports governments by contributing to the implementation of the European Pillar of Social Rights; highlights, furthermore, that in the context of the current global geopolitical situation, it is essential to use RRF also as an instrument to develop and strengthen the EU’s security and defence capabilities;

Amendment 11

Motion for a resolution

Paragraph 6

Motion for a resolutionAmendment
6. Welcomes the fact that the RRF provides support for both reforms and investments in the Member States, but notes that a lot still remains to be done; is concerned that the short period for the remaining RRF implementation will not allow for the implementation of several planned important reforms and large investments;6. Welcomes the fact that the RRF provides support for both reforms and investments in the Member States, particularly in transport infrastructure projects, and acknowledges the significant reforms and investments made by the Member States for more modern and sustainable transport and networks, including projects that support the uptake of electric vehicles and other vehicle technologies, as well as the decarbonisation of public transport systems; highlights that these efforts are a crucial step towards meeting the EU’s environmental and climate goals, making its transport systems more sustainable, accessible and efficient, reducing emissions and promoting economic cohesion, but acknowledges that much still remains to be done;

Amendment 12

Motion for a resolution

Paragraph 6 a (new)

Motion for a resolutionAmendment
6a. Is concerned that the limited time remaining for the RRF implementation, concluding at the end of 2026, may hinder the completion of several significant planned reforms and investments, such as the completion of crucial large-scale infrastructure projects, including sustainable mobility initiatives with longer implementation timelines and cross-border projects, which require effective coordination between the Member States and the Commission;

Amendment 13

Motion for a resolution

Paragraph 6 b (new)

Motion for a resolutionAmendment
6b. Considers that the RRF’s effectiveness in driving GDP growth could be diminished by incomplete or ineffective implementation of its milestones and targets, particularly due to the overlap between the 2014-2020 and 2021-2027 programming periods, which has impacted the absorption rates of the current period, especially for large-scale transport projects; regrets that this overlap, coupled with the lack of administrative capacity in many Member States, has hindered the timely execution of key transport infrastructure initiatives and the ability to achieve desired economic and environmental outcomes by 2030; calls on the Member States and the Commission to reinforce administrative capacity to address these overlaps and ensure the swift and efficient completion of transport infrastructure projects;

Amendment 14

Motion for a resolution

Paragraph 9

Motion for a resolutionAmendment
9. Recalls its call to focus RRF interventions on measures with European added value and therefore regrets the shortage of viable cross-border projects and the related risk of re-nationalising funding;9. Recalls its call to focus RRF interventions on measures with European added value and therefore regrets the shortage of viable cross-border projects, including high-speed railway and sustainable mobility infrastructure projects essential to completing the TEN-T network, and the related risk of re-nationalising funding; highlights the effectiveness of the Connecting Europe Facility (CEF) in addressing bottlenecks impacting cross-border connectivity; regrets its underfunding and calls for the CEF to be maintained as a centrally managed EU instrument under the new multiannual financial framework (MFF) to support such projects;

Amendment 15

Motion for a resolution

Paragraph 9 a (new)

Motion for a resolutionAmendment
9a. Stresses that, in the field of transport, cross-border projects are crucial for military mobility, which is essential for adapting key sections of the TEN-T infrastructure for dual-use along strategic corridors, particularly at cross-border connections; considers this a missed opportunity for enabling the swift and efficient movement of military equipment across Europe and facilitating a coordinated response to security threats faced by EU Member States and their allies, while also helping to complete the TEN-T network;

Amendment 16

Motion for a resolution

Subheading 1 a (new)

Motion for a resolutionAmendment
1a. Supporting Europe’s preparedness for the green and digital transitions, including transport decarbonisation;

Amendment 17

Motion for a resolution

Paragraph 10 a (new)

Motion for a resolutionAmendment
10a. Regrets the lack of obligation for Member States to include cross-border projects in their NRRPs, which could have significantly bolstered the deployment of the TEN-T network and enhanced connectivity;

Amendment 18

Motion for a resolution

Paragraph 10 b (new)

Motion for a resolutionAmendment
10b. Welcomes the fact that several Member States explicitly addressed the electrification of transport and its infrastructure and the production and uptake of electric vehicles in their (amended) NRRPs, recognising the importance of these actions in achieving the EU’s sustainable transition and reducing emissions across the transport sector;

Amendment 19

Motion for a resolution

Paragraph 10 c (new)

Motion for a resolutionAmendment
10c. Welcomes, furthermore, the investments made in urban mobility, especially in cycling and recharging infrastructure, as well as measures to develop the market for zero-emission vehicles via notably favourable tax schemes or measures designed to ease the permitting procedures for recharging infrastructure;

Amendment 20

Motion for a resolution

Paragraph 11 a (new)

Motion for a resolutionAmendment
11a. Recalls that applying the EU public procurement framework to investments supported under the RRF can result in high-quality, sustainable infrastructure projects, ensure fair competition and reward best practices in project delivery; calls, in this regard, on the Commission to seize the opportunity of the upcoming revision of the Public Procurement Directive1a to ensure that EU funds promote fair competition and the deployment of innovative solutions on the market; ______________ 1a Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC, OJ L 94, 28.3.2014, p. 65, ELI: http://data.europa.eu/eli/dir/2014/24/oj.

Amendment 21

Motion for a resolution

Paragraph 12

Motion for a resolutionAmendment
12. Stresses that the RRF is the first major performance-based instrument at EU level which is exclusively based on financing not linked to costs (FNLC); regrets that the Council did not agree to insert specific rules in the Financial Regulation to address the risks of this delivery model, such as double funding;12. Stresses that the RRF is the first major performance-based instrument at EU level which is exclusively based on financing not linked to costs (FNLC); points out that simplification has also been targeted with the increased use of simplified cost options (SCOs) and the application of the single audit approach in cohesion policy funds; regrets that the Council did not agree to insert specific rules in the Financial Regulation to address the risks of this delivery model, such as double funding, which could impact the transparency and effectiveness of transport infrastructure investments; emphasises the need for robust control mechanisms to prevent double funding and ensure the integrity of transport-related expenditure under the RRF;

Amendment 22

Motion for a resolution

Paragraph 13

Motion for a resolutionAmendment
13. Notes that only 13 Member States have requested loans and that EUR 92 billion of the EUR 385.8 billion available will remain unused since this amount was not committed by the deadline of 31 December 2023; takes note of the fact that loans were attractive for Member States that faced higher borrowing costs on the financial markets or that sought to compensate for a reduction in RRF grants; recalls that Parliament had advocated for a higher share of grants than loans and considers that a political discussion is needed on the use of unspent funds in the light of tight public budgets;13. Notes that only 13 Member States have requested loans, and that EUR 92 billion of the EUR 385.8 billion available will remain unused, as this amount was not committed by the deadline of 31 December 2023; takes note of the fact that loans were attractive to Member States facing higher borrowing costs on financial markets or seeking to compensate for a reduction in RRF grants; recalls that Parliament had advocated a higher share of grants rather than loans and considers that, especially in the light of tight public budgets, a political discussion is needed regarding the use of unspent funds, such as the option to reallocate these unspent funds under the next multiannual financial framework to better address the EU’s key strategic priorities;

Amendment 23

Motion for a resolution

Paragraph 13 a (new)

Motion for a resolutionAmendment
13a. Highlights the EU’s urgent strategic priorities including defence and security, and therefore calls for the proposal on how unused RRF funds can be quickly redirected to reinforce Europe’s defence and security capabilities, particularly through investments in dual-use technologies and robust critical defence infrastructure that can respond to crises without delay;

Amendment 24

Motion for a resolution

Paragraph 15

Motion for a resolutionAmendment
15. Notes the Commission’s estimation that between 2024 and 2027, NGEU borrowing costs will exceed expectations by EUR 17 billion to EUR 27 billion; recalls that recourse to special instruments had to be made in the last three budgetary procedures to cover EURI instrument costs;15. Notes the Commission’s estimation that between 2024 and 2027, NGEU borrowing costs will exceed expectations by EUR 17 billion to EUR 27 billion; recalls that the annual repayment cost of the grant component of the RRF will peak at EUR 26 billion in 2028; recalls that recourse to special instruments had to be made in the last three budgetary procedures to cover EURI instrument costs;

Amendment 25

Motion for a resolution

Paragraph 16

Motion for a resolutionAmendment
16. Takes note of the Commission’s target to fund up to 30 % of NGEU costs by issuing greens bonds; notes that by 31 December 2024 the Commission had issued European green bonds amounting to EUR 68.2 billion;16. Takes note of the Commission’s target to fund up to 30 % of NGEU costs by issuing green bonds; notes that by 31 December 2024 the Commission had issued European green bonds amounting to EUR 68.2 billion; insists on the potential of green bonds to fund sustainable mobility projects and welcomes their successful use for the transport sector; calls on the Commission and the Member States to explore reallocating unspent RRF funds to finance similar initiatives;

Amendment 26

Motion for a resolution

Paragraph 16 a (new)

Motion for a resolutionAmendment
16a. Urges the Commission and the Member States to attract private investments and, in particular, to promote public-private partnerships for cross-border rail initiatives under the RRF, as well as to foster collaboration for cross-border rail projects at both Member State and EU level;

Amendment 27

Motion for a resolution

Paragraph 17

Motion for a resolutionAmendment
17. Notes that 47 % of the available RRF funds had been disbursed by 31 December 2024, with grants reaching 55 % and loans 37 %; is concerned, however, about the ECA’s finding that only 50 % of disbursed funds had reached final beneficiaries in 15 out of 22 Member States by October 2023;17. Notes that 47 % of the available RRF funds had been disbursed by 31 December 2024, with grants reaching 55 % and loans 37 %; is concerned, however, about the ECA’s finding that only 50 % of disbursed funds had reached final beneficiaries in 15 out of 22 Member States by October 2023; urges the Member States and the Commission to ensure that funds are disbursed swiftly into the real economy, particularly to accelerate transport infrastructure projects essential for enhancing connectivity and economic growth across the EU;

Amendment 28

Motion for a resolution

Paragraph 18 a (new)

Motion for a resolutionAmendment
18a. Notes that the RRF allocates an estimated EUR 87.9 billion to sustainable mobility initiatives, representing approximately 25.7 % of the climate-related expenditure across the NRRPs; welcomes the fact that the largest share of this funding, around EUR 42 billion, is dedicated to railway infrastructure projects, including the construction, renovation and electrification of railway lines, as well as the procurement of zero-emission trains;

Amendment 29

Motion for a resolution

Paragraph 18 b (new)

Motion for a resolutionAmendment
18b. Calls on the Member States to implement fast-track approval processes, where appropriate, for cross-border rail projects funded under the RRF, to ensure timely delivery and avoid unnecessary delays, and to make sure RRF-funded rail projects integrate the most advanced, efficient and viable technologies, such as the European Rail Traffic Management Systems (ERTMS), automated freight systems and smart ticketing;

Amendment 30

Motion for a resolution

Paragraph 19

Motion for a resolutionAmendment
19. Notes the tangible impact that the RRF could have on social objectives, with Member States planning to spend around EUR 163 billion; stresses the need to accelerate investments in the development of rural and remote areas, social protection and the integration of vulnerable groups, and youth employment, where expenditure is lagging behind; calls for an in-depth evaluation by the Commission, under the Recovery and Resilience Scoreboard, of the projects and reforms related to education and young people implemented by Member States under the RRF;19. Notes the tangible impact that the RRF could have on social objectives, with Member States planning to spend around EUR 163 billion; stresses the need to accelerate investments in the development of rural and remote areas, social protection and the integration of vulnerable groups, and youth employment, where expenditure is lagging behind; highlights the importance of increasing investments in transport infrastructure in this context, particularly in underserved regions, to improve connectivity, support regional cohesion and contribute to the green transition; calls for an in-depth evaluation by the Commission, under the Recovery and Resilience Scoreboard, of the projects and reforms related to education and young people implemented by Member States under the RRF;

Amendment 31

Motion for a resolution

Paragraph 24

Motion for a resolutionAmendment
24. Notes the high administrative burden and complexity brought by the RRF; stresses the considerable efforts required at national level to implement the RRF in parallel with structural funds; notes that between 2021 and 2024 the Technical Support Instrument supported more than 500 RRF-related reforms in the Member States, directly or indirectly related to the preparation, amendment, revision and implementation of the NRRPs; takes note of the Commission guidance of July 2024 with simplifications and clarifications to streamline RRF implementation but expects the Commission to act swiftly on its promise to cut the administrative burden by 25 %;24. Notes the high administrative burden and complexity brought by the RRF, particularly due to varying interpretations of its implementation rules, which have led to execution timelines being extended; stresses the considerable efforts required at national level to implement the RRF along with structural funds; highlights that between 2021 and 2024, the Technical Support Instrument supported over 500 RRF-related reforms in the Member States, directly or indirectly related to the preparation, amendment, revision and implementation of the NRRPs; takes note of the Commission guidance of July 2024 with simplifications and clarifications to streamline RRF implementation but expects the Commission to act swiftly on its promise to cut the administrative burden by 25 % and simplify processes further for beneficiaries; notes the importance of accurate future planning and adaptable deadlines; underlines that reducing regulatory and administrative burdens at all levels and simplifying implementation are key to ensuring equal access to funding for small and medium-sized enterprises (SMEs), regional authorities and disadvantaged regions;

Amendment 32

Motion for a resolution

Paragraph 25

Motion for a resolutionAmendment
25. Believes that implementation delays underscore the risk that measures for which RRF funding has been paid will not be completed by the 2026 payment deadline; recalls the Commission’s statement at the Recovery and Resilience Dialogue (RRD) of 16 September 2024 that it will not reimburse non-implemented projects but considers it a shortcoming that RRF funds paid for milestones and targets assessed as fulfilled cannot be recovered if related measures are not eventually completed;25. Believes that implementation delays underscore the risk that measures, particularly those related to transport investments, for which RRF funding has been paid will not be completed by the 2026 payment deadline; recalls the Commission’s statement at the Recovery and Resilience Dialogue (RRD) of 16 September 2024 that it will not reimburse non-implemented projects but considers it a shortcoming that RRF funds paid for milestones and targets assessed as fulfilled cannot be recovered if related measures are not eventually completed;

Amendment 33

Motion for a resolution

Paragraph 26

Motion for a resolutionAmendment
26. Notes that some milestones and targets may be no longer achievable because of objective circumstances; stresses that any NRRP revisions should be made in accordance with the RRF Regulation, including of the applicable deadlines, and should not entail backtracking on commitments or lower quality projects;26. Notes that some milestones and targets may be no longer achievable because of objective circumstances; stresses that any NRRP revisions should be made in accordance with the RRF Regulation, including of the applicable deadlines, and should not entail backtracking on commitments or lower quality projects; notes that safety should be a key consideration when it comes to avoiding lower quality projects, particularly in the transport sector, where delays or cost-cutting measures could lead to the use of substandard materials, ultimately compromising the safety, sustainability and long-term effectiveness of these investments;

Amendment 34

Motion for a resolution

Paragraph 28

Motion for a resolutionAmendment
28. Urges the Member States to increase their efforts to address administrative bottlenecks and provide sufficient administrative capacity to accelerate RRF implementation in view of the 2026 deadline and to avoid concentrating RRF projects in more developed regions and capitals by enabling RRF funds to flow into projects in the most vulnerable regions, thereby serving the RRF’s objective to enhance the EU’s social, territorial and economic cohesion; calls for the automatic 12-month extension of projects that have an implementation rate of at least 20 % before the 2026 deadline; welcomes the possibility to establish a prioritisation and transfer system after the 2026 deadline in order to allow for the finalisation of ongoing projects through other funding schemes, including the European Investment Fund and a possible new European competitiveness fund;28. Urges the Member States to increase their efforts to address administrative bottlenecks and ensure sufficient administrative capacity to accelerate RRF implementation ahead of the 2026 deadline; calls for measures to avoid concentrating RRF projects in more developed regions and capitals by ensuring RRF funds flow into projects in rural, peripheral and outermost regions, thereby serving the RRF’s objective to enhance the EU’s social, territorial and economic cohesion; calls for the automatic 24-month extension of projects that directly address this objective, including those related to policy objectives of the TEN-T network, projects that have an implementation rate of at least 20 % before the 2026 deadline, and projects with a cross-border element or those that enhance cross-border connectivity; welcomes the possibility to establish a prioritisation and transfer system after the 2026 deadline in order to allow for the finalisation of ongoing projects through other funding schemes, including the Connecting Europe Facility, the European Investment Fund and a possible new European competitiveness fund;

Amendment 35

Motion for a resolution

Paragraph 29 a (new)

Motion for a resolutionAmendment
29a. Emphasises the importance of fully utilising and optimising existing EU funding instruments for climate, energy and transport; highlights the need to improve coordination, simplify the administrative process and enhance efficiency in the use of current resources to address long-term funding gaps for cross-border projects and transport development, while avoiding the complexity and administrative burden of additional financial structures;

Amendment 36

Motion for a resolution

Paragraph 29 b (new)

Motion for a resolutionAmendment
29b. Urges the Commission, in cooperation with the Member States, to ensure a comprehensive performance monitoring and evaluation framework by improving the quality of the data reported for the common indicators, regular reporting and public disclosure of project timelines, budgets and outcomes;

Amendment 37

Motion for a resolution

Paragraph 31 a (new)

Motion for a resolutionAmendment
31a. Urges the Commission, in cooperation with the Member States, to identify the projects most at risk of not being completed by 31 December 2026, systematically monitor the progress of these projects and agree on actions to overcome the delays, and proactively mitigate the risk of funding projects that may not be completed on time;

Amendment 38

Motion for a resolution

Paragraph 32

Motion for a resolutionAmendment
32. Regrets the lack of a proper RRF audit trail and the persistent lack of transparency despite the bi-annual reporting requirement for Member States on the 100 largest final recipients, which was introduced into REPowerEU upon Parliament’s request; regrets the delays in reporting by some Member States and the limited informative value of the information provided, which ultimately prevents compliance checks by the Commission or the ECA; reiterates its call for the lists of the largest final recipients for each Member State to include information on the economic operators involved and their beneficial owners;32. Regrets the lack of a proper RRF audit trail and the persistent lack of transparency despite the bi-annual reporting requirement for Member States on the 100 largest final recipients, which was introduced into REPowerEU upon Parliament’s request; regrets the delays in reporting by some Member States and the limited informative value of the information provided, which ultimately prevents compliance checks by the Commission or the ECA; reiterates its call for the lists of the largest final recipients for each Member State to include information on the economic operators involved and their beneficial owners; highlights the importance of reporting about the final recipients of NRRPs and final implementation rates;

Amendment 39

Motion for a resolution

Paragraph 41 a (new)

Motion for a resolutionAmendment
41a. Considers it crucial to ensure that future performance-based instruments establish more realistic timelines for project implementation, while placing greater emphasis on monitoring the progress of Member States; highlights the need for flexibility to adjust the course of action if projects are not advancing at the required pace;

Amendment 40

Motion for a resolution

Paragraph 43

Motion for a resolutionAmendment
43. Considers that better training and capacity-building across all regions and authorities involved, in particular at national level, could have accelerated the RRF’s implementation; considers that the Commission could have assisted Member States more at the planning stage and provided earlier implementation guidance, in particular with a view to strengthening their audit and control systems and the cross-border dimension of the RRF;43. Considers that better training and capacity-building across all regions and authorities involved, in particular at national level, could have accelerated the RRF’s implementation; considers that the Commission could have assisted Member States more at the planning stage, notably in the development of the NRRPs, and provided earlier implementation guidance, in particular with a view to strengthening their audit and control systems and the cross-border dimension of the RRF; calls on the Commission, in collaboration with the Member States, to assess how future, or existing, funding mechanisms can be better tailored to support cross-border projects, and national projects that directly improve cross-border connectivity, by extending project durations, reducing supply chain vulnerabilities and promoting sustainable transport initiatives; suggests that these mechanisms could benefit from the reallocation of unspent RRF funds or from the originally intended funds for such projects; calls for the Commission to assess where cross-border missing links most urgently need to be addressed to reduce supply chain vulnerabilities;

Amendment 41

Motion for a resolution

Paragraph 44 a (new)

Motion for a resolutionAmendment
44a. Highlights that, in the context of the use of the RRF, the EU lacks a comprehensive analysis from the Commission on how the COVID-19 pandemic and Russia’s invasion of Ukraine have impacted the physical accessibility of different Member States, especially the security of supply chains; urges the Commission, therefore, to act promptly and carry out the analysis, so that the missing links are recognised and the necessary measures can be planned and implemented;

Amendment 42

Motion for a resolution

Paragraph 46

Motion for a resolutionAmendment
46. Reiterates its call for an open platform which contains data on all projects, final recipients and the regional distribution of funding, thereby facilitating auditing and democratic oversight;46. Reiterates its call for an open platform which contains data on all projects, final recipients and the regional distribution of funding, thereby facilitating auditing and democratic oversight; welcomes the idea of a true single point of entry for beneficiaries to all EU funding and advisory services; calls for a stronger focus on transparency, accountability and traceability of EU funds; demands the reporting and availability of updated data from the NRRPs on the amount of funds received by final recipients, particularly for transport infrastructure projects contributing to the completion of the TEN-T network and enhancing cross-border connectivity;

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for the opinion received input from the following entities or persons in the preparation of the opinion, prior to the adoption thereof in committee:

Entity and/or person
- Community of European Railway and Infrastructure Companies (CER) - European Trade Union Confederation (ETUC)

The list above is drawn up under the exclusive responsibility of the rapporteur for the opinion.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for the opinion declares that he has submitted to the concerned natural persons the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

Date adopted9.4.2025
Result of final vote+: –: 0:37 5 0
Members present for the final voteDaniel Attard, Adrian-George Axinia, Rachel Blom, Nikolina Brnjac, Nina Carberry, Carlo Ciccioli, Vivien Costanzo, Johan Danielsson, Gheorghe Falcă, Jens Gieseke, Borja Giménez Larraz, Sérgio Gonçalves, Roman Haider, Sérgio Humberto, Dariusz Joński, François Kalfon, Martine Kemp, Sophia Kircher, Merja Kyllönen, Luis-Vicențiu Lazarus, Julien Leonardelli, Vicent Marzà Ibáñez, Alexandra Mehnert, Ştefan Muşoiu, Jan-Christoph Oetjen, Philippe Olivier, Matteo Ricci, Arash Saeidi, Marjan Šarec, Andreas Schieder, Rosa Serrano Sierra, Virginijus Sinkevičius, Stanislav Stoyanov, Kai Tegethoff, Elissavet Vozemberg-Vrionidi, Maciej Wąsik, Roberts Zīle, Kosma Złotowski
Substitutes present for the final voteElena Nevado del Campo, Ana Vasconcelos
Members under Rule 216(7) present for the final voteGrégory Allione, Andreas Glück

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

Date adopted20.5.2025
Result of final vote+: –: 0:63 12 6
Members present for the final voteGeorgios Aftias, Stephen Nikola Bartulica, Isabel Benjumea Benjumea, Stefan Berger, Gilles Boyer, Tomasz Buczek, Giovanni Crosetto, Fabio De Masi, Siegbert Frank Droese, Marco Falcone, Markus Ferber, Angéline Furet, Thomas Geisel, Jean-Marc Germain, Dirk Gotink, Enikő Győri, Andrzej Halicki, Eero Heinäluoma, Monika Hohlmeier, Alexander Jungbluth, Billy Kelleher, Aurore Lalucq, Rada Laykova, Giuseppe Lupo, Marlena Maląg, Jorge Martín Frías, Fulvio Martusciello, Costas Mavrides, Siegfried Mureşan, Jana Nagyová, Victor Negrescu, Matjaž Nemec, Danuše Nerudová, Denis Nesci, Luděk Niedermayer, Ľudovít Ódor, Gaetano Pedulla’, Lídia Pereira, Kira Marie Peter-Hansen, Sirpa Pietikäinen, Pierre Pimpie, Evelyn Regner, René Repasi, Karlo Ressler, Bogdan Rzońca, Julien Sanchez, Paulius Saudargas, Hélder Sousa Silva, Nicolae Ştefănuță, Carla Tavares, Irene Tinagli, Pasquale Tridico, Nils Ušakovs, Lucia Yar, Stéphanie Yon-Courtin, Auke Zijlstra
Substitutes present for the final votePablo Arias Echeverría, Stine Bosse, Regina Doherty, Jonás Fernández, Christophe Gomart, Bruno Gonçalves, Michalis Hadjipantela, Rasmus Nordqvist, Jaroslava Pokorná Jermanová, Vladimir Prebilič, Jacek Protas, Jussi Saramo, Annamária Vicsek, Roberts Zīle
Members under Rule 216(7) present for the final voteSakis Arnaoutoglou, Nikola Bartůšek, Fredis Beleris, Raúl de la Hoz Quintano, Christian Doleschal, Rosa Estaràs Ferragut, Hana Jalloul Muro, Katrin Langensiepen, Andreas Schieder, Anna Strolenberg, Lara Wolters