Recently, the European Commission, in a statement, assessed the Recovery and Resilience Framework (RRF) two years after its entry into force. Recall that the Mechanism (worth 723 billion euros and a key element of the EU’s next generation program – NGEU) was created to facilitate the transition to a green economy and digital convergence in 27 EU member states. and to address the challenges posed by the recent pandemic.

The financial capital provided is provided through approved National Recovery and Resilience Plans (RRPs), which include “national ownership” policies. The implementation of the plans is assessed by the European Commission on the basis of an agreed timetable and compliance with milestones and goals that promote investment and reform in the Member States. The above is in line with both the strategic goals of the Union to reduce emissions and create a climate-neutral and environmentally competitive production model, as well as the Cohesion Policy. In conclusion, the Recovery Fund is an instrument that is based and evaluated strictly on the basis of an agreed multilateral monitoring methodology and the results achieved. And any delay or failure to achieve the goals and milestones on the part of the Member States implies a suspension of funding based on a certain methodology, respecting equal treatment and proportionality. As for the implementation of the Fund as a whole, 2,187 reforms and 3,780 investments have been approved at the union level. To date, a total of 16 payment requests have been granted, 3 have already been positively assessed and 8 are being processed, with over €144 billion disbursed in both grants (€96 billion) and loans (€48 billion) . ). These figures include pre-funding paid out to Member States in 2021 (€56.5 billion).

Specifically for Greece, the above announcement mentions reforms to simplify licensing to increase investment in offshore renewable energy sources (RES) or reforms to create conditions for the introduction of renewable hydrogen. In this context, the emphasis placed in the Greek program on significant reforms with the creation of new structures aimed at simplifying the existing institutional framework (eg codification of legislation, strengthening the efficiency of the tax system, etc.) cannot be overlooked. .

Undoubtedly, with the assistance of the Mechanism, the EU economy has succeeded and already in mid-2021 has closed the gap from the pre-pandemic level of production. it is projected to rise by 3.5%, and the unemployment rate hit an all-time low of 6.1% in December 2022, despite additional shocks caused by Russia’s war against Ukraine. Facility disbursements and implementation are expected to peak in 2023, supporting public and private investment and reforms. The ratio of public investment to GDP is expected to increase from 3% in 2019 to 3.4% of GDP in 2023. Half of this increase between 2019 and 2023 is supported by EU funding. for RRF. In addition, according to the European Commission, investments funded by NextGenerationEU can increase the GDP of the EU. by about 1.5% in 2024 and stimulate the creation of additional jobs.

The above goals, in light of the geopolitical/energy concerns highlighted by Russia’s invasion of Ukraine, are complemented by a complementary REPowerEU initiative to complement the RRF, aimed at weaning the European economy from fossil fuel imports, strengthening its self-sufficiency, as well as expanding energy production from RES. The corresponding revised Regulation was approved by the Council on 21.02.2023 and entered into force on 1 March 2023. In addition to the existing RRF funds, the new REPowerEU initiative provides member states with additional funds of 20 billion euros. The EU funding deadline for all of the above is 2026.

In conclusion, based on the findings of the announcement, the Mechanism in question represents a significant intervention by the EU. face common and unexpected challenges, allowing powerful symbols of unity, solidarity and rapid response to emerge. It includes a unique approach that combines investment with reform and gives Member States the flexibility to implement actions based on national choices and priorities. Just two years after its implementation, the Fund has already provided significant financial support and accelerated the recovery of the EU economy. and Member States, although this seems to influence the European Commission’s choice of future proposals for economic coordination and economic governance in the EU.

* Ms. Athena Kaliva (Ph.D.) – Head of the Economic Policy Section of the Permanent Mission of Greece to the EU, formerly G.K. tax policy and state property (Ministry of Finance).