The Recovery and Resilience Facility (RRF) is a temporary instrument that is the centrepiece of NextGenerationEU -the EU’s plan to emerge stronger and more resilient from the current crisis.

The overall budget of this instrument is €650 billion, of which €359 billion in grants and €291 billion in loans. Through the Facility, Member States receive funds to implement ambitious reforms and investments that:

• make their economies and societies more sustainable, resilient and prepared for the green and digital transitions, in line with the EU’s priorities;
• address the challenges identified in country-specific recommendations under the European Semester framework of economic and social policy coordination.

To benefit from support under the Facility, EU governments have submitted national recovery and resilience plans, outlining the reforms and investments they will implement by end-2026, with clear milestones and targets. The plans had to allocate at least 37% of their budget to green measures and 20% to digital measures.

The RRF is performance based, meaning that the Commission only pays out the amounts to each country when they have achieved the agreed milestones and targets towards completing the reforms and investments included in their plan.

Member States can revise their plans based on the available legal grounds under the RRF Regulation. A revision can be linked to financial aspects, that is:

• to benefit from additional REPowerEU funds;
• to reflect a change in a Member State's maximum financial allocation under the RRF;
• resources needed in order to take up additional RRF loans.

Member States can also amend their plan if they can demonstrate that objective circumstances render the implementation of certain milestones and targets unfeasible.

The RRF Regulation requires that the Commission provides the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions with a mid-term evaluation on the implementation of the Recovery and Resilience Facility.