Economic and Financial Affairs

One year on from its introduction, the report takes stock of the progress made in the implementation of the Facility, from the adoption of the RRF Regulation in February 2021 to the disbursement of the first regular payment in December 2021. The report shows that major headway has been made and confirms that the implementation of the RRF is well underway. The report details numerous examples of the investments and reforms financed by the RRF in the 22 recovery and resilience plans that have been adopted so far. These examples present concrete measures that are contributing to the six policy pillars defined in the RRF Regulation, including the green transition and the digital transformation. The report therefore provides an important insight into the unprecedented scale and impact of the measures that are being implemented across the EU as a result of the RRF.

The Communication is presented in the context of Russia's unprovoked and unjustified invasion of Ukraine. In solidarity with Ukraine, the EU has approved an unprecedented package of economic sanctions that will have a severe impact on the Russian economy and political elite. The 2022 Winter Economic Forecast was published on 10 February, two weeks before the invasion of Ukraine. This development negatively impacts the growth outlook and tilts the risks further to the downside. It also further underscores the need for strong coordination of economic and fiscal policies, and for fiscal policies to be adapted in reaction to rapidly changing circumstances. The guidance will be adjusted to economic developments as needed.

On 29 December 2021, Greece submitted to the Commission a payment request based on the achievement of the 15 milestones selected in the Council Implementing Decision for the first instalment. They cover reforms and investments in the areas of energy efficiency, electric mobility, waste management, labour market, taxation, business environment, healthcare, public transport, as well as Greece's audit and control system for the implementation of the RRF. With their request, the Greek authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 15 milestones. The Commission thoroughly assessed this information before presenting its positive preliminary assessment of the payment request.

On 30 December 2021, Italy submitted to the Commission a payment request based on the 51 milestones and targets selected in the Council Implementing Decision for the first instalment. They cover reforms in the areas of public administration, public procurement, justice, the spending review framework, tertiary education, active labour market policies and the framework law to strengthen the autonomy of people with disabilities, as well as Italy's audit and control system for the implementation of the RRF. They also concern major investments in the field of digitalisation of businesses (“Transition 4.0”), energy efficiency and renovation of residential buildings. With their request, the Italian authorities provided detailed and comprehensive evidence demonstrating the satisfactory fulfilment of the 51 milestones and targets. The Commission thoroughly assessed this information before presenting its positive preliminary assessment of the payment request.

Spain is set to receive €69.5 billion from the €723.8 billion (in current prices) Recovery and Resilience Facility (RRF) - the biggest public investment plan in the country's recent history. So far it has received €9 billion in emergency pre-financing and its first instalment of €10 billion in December 2021. Like many southern European Member States, Spain suffers from systemic unemployment, especially among the young. Matching student skills to what employers actually want is, therefore, seen as one of the key ways to reduce unemployment. To augment vocational training centres already funded by the European Social Fund, €2 billion of the Recovery Fund money will be dedicated to the creation of 135,000 new vocational training places across Spain. A major aim is to equip workers with the skills needed in the growing digital sector. To receive its first disbursement of €10 billion, Spain has had to implement dozens of structural reforms, including measures aimed at improving its vocational training ecosystem and reducing the gender pay gap at work. According to Nadia Calviño, Spain’s Vice President and Minister for Economy and Digitalization, vocational training, together with the structural reforms, particularly in the labour market and education, “can allow Spain to finally tackle some of the imbalances that have been dragging growth and prosperity for decades.”

The report is prepared in the context of the enhanced surveillance framework, which serves to ensure continued support for the delivery of Greece's reform commitments following the successful completion of the financial assistance programme in 2018. The enhanced surveillance report concludes that Greece has taken the necessary actions to achieve its specific commitments, despite the challenging circumstances that continue to be posed by the pandemic. The authorities delivered on specific commitments across various areas, notably as regards enhancing the efficiency of public administration, completing the administrative reorganisation of the Single Pension Fund, and simplifying investment licensing in the agreed sectors.