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The European Commission has disbursed on 8 August 2025 a total of €42.8 billion to five EU states – Italy, Portugal, Cyprus, Malta and Spain – under the Recovery and Resilience Facility, the centerpiece of the NextGenerationEU plan. The disbursements are part of the Commission’s efforts to support the economic growth and resilience in the EU member states, and are based on the successful steps in the implementation of reforms and investments outlined in each country’s recovery and resilience plans.
EU investment in the member states’ growth
= Spain: €23.1 billion disbursement i.e. it is the fifth payment under the RRF, which includes €7 billion in grants and €16 billion in loans. The payment covers 82 goals and targets, including important steps in the delivery of 20 reforms and 49 investments.
The reforms and investments include: = measures to boost the uptake of and investment in renewable energy, = to cut red tape and ensure that clean energy sources are better connected to the power grid, = to create a Council on Sustainable Finance as a forum to promote public-private collaboration in this area and to improve justice efficiency. They also include investments in short-distance rail travel, strengthening citizens and SMEs’ cybersecurity resilience by boosting the cybersecurity industry and supporting innovative companies.
The total funds paid out to Spain under the RRF now stand at €71 billion, which is 44% of the total allocation. Spain’s overall recovery and resilience plan is financed by €163 billion, in grants and loans.
= Italy: €18.3 billion disbursement, which is the seventh payment under the RRF; the payment includes €4.6 billion in grants and €13.7 billion in loans, and covers 31 milestones and 33 targets related to 10 reforms and 46 investments.
Italy has taken significant steps to boost competition and transparency, adopting a new Annual Competition Law 2023 that promotes public tender procedures and increased oversight in sectors such as highways. Additionally, the country has improved accessibility for railway passengers with disabilities and reduced mobility by renovating 10 stations in Southern Italy.
Italy has also increased its renewable energy distribution capacity by 1,848 MW through the installation of new substations, modernization of existing ones, and reinforcement of distribution lines, enhancing the grid’s ability to distribute clean energy.
The total funds paid out to Italy under the RRF now stand at €140.4 billion, which is 72% of the total allocation. Italy’s overall recovery and resilience plan is financed by €194.4 billion, in grants and loans.
= Portugal: €1.34 billion disbursement is representing the sixth payment under the RRF; the payment covers 32 milestones and targets, including key reforms and investments in healthcare, housing, forest fire management, renewable energy and business environment.
Key reforms are aimed at improving insolvency proceedings and making it easier for companies to restructure and invest. Portugal has also invested in expanding its national care networks and supporting the inclusion of persons with disabilities.
The total funds paid out to Portugal under the RRF now stand at €11.4 billion, which is 57% of the total allocation. Portugal’s overall recovery and resilience plan is financed by€22.2 billion, in grants and loans.
= Cyprus: €76 million disbursement, is representing the fourth payment under the RRF, which covers 17 milestones and 6 targets. They are focused on expanding online government services, improving corporate trust through the introduction of a transparent beneficial ownership registry and digitalising health care services notably in cross-border contexts. The reforms and investments will also simplify the issuance and transfer of title deeds as well as introduce digital solutions, to ease business transactions.
The total funds paid out to Cyprus under the RRF now stand at €568 million, which is 46.5% of the total allocation. Cyprus’s overall recovery and resilience plan is financed by €1.22 billion in grants and loans.
= Malta: €48.7 million disbursement, is representing the third payment under the RRF. This payment covers 11 milestones and 13 targets related to 15 reforms and 9 investments, including such measures as: – increasing access to free public transport, – promoting sustainable mobility by signing contracts for the procurement of electric vehicles for use in the public sector, – upgrading education infrastructure by renovating public schools, – enhancing healthcare services by purchasing additional medical equipment and setting up a neonatal hearing screening program to detect and address possible hearing issues in newborns; as well as – modernising the justice system with the purchase of new digital equipment and tools, and – strengthening Malta’s anti-money laundering framework.
The total funds paid out to Malta under the RRF now stand at €215 million, which is 66% of the total allocation. Malta’s overall recovery and resilience plan is financed by €328 million in grants.
More on RRF
The Recovery and Resilience Facility, RRF is a temporary instrument in the EU-wide plan called NextGenerationEU, to emerge stronger and more resilient from the current crises. Through the Facility, the Commission raises funds by borrowing on the capital markets (issuing bonds on behalf of the EU), which are then distributes by the Commission to those states, that need resources to implement ambitious reforms and investments that: a) making their socio-economic development more sustainable, resilient and prepared for the green and digital transitions, in line with the EU’s political priorities; and b) addressing the challenges identified in country-specific recommendations under the European Semester*) framework of economic and social policy coordination.
The RRF is also crucial for implementing the REPowerEU plan – the Commission’s response to the socio-economic hardships and global energy market disruption.
Reference to: https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility_en
*) Note. The European Semester (established in 2010), it is an annual “exercise” in autumn and in spring aimed to coordinate the EU-wide economic and social policies: e.g. during the Semester, the EU states are supposed to align their budgetary and economic policies with the objectives and rules agreed upon at the EU level.
By achieving stronger economic and social coordination, the European Semester aims to ensure sustainable economic growth, job creation, macroeconomic stability and sound public finances across the EU-27.
Source: https://commission.europa.eu/business-economy-euro/european-semester_en#:~:text=The%20European%20Semester%20is%20the,of%20economic%20and%20social%20policies.
The EU NextGenerationEU plan
The plan represents a “groundbreaking temporary recovery instrument” to support Europe’s economic recovery from the coronavirus pandemic and build a greener, more digital and more resilient future. Based on the EU states’ requests for funding under the RRF and the funding needs of other EU programs supported by NextGenerationEU, the EU expects to raise up to €712 billion (out of a maximum plan’s envelope of €806.9 billion) by 2026.
Under the RRF, up to €338 billion of grants will be financed through borrowing operations; still the member states will also receive additional RRF grants of €17.3 billion financed under the Emissions Trading System (ETS) and €1.6 billion under the Brexit Adjustment Reserve (BAR).
Borrowing operations will also finance RRF loans: of the total available RRF loan envelope of €385 billion, close to €291 billion has been committed by end 2023, following the states’ requests.
In addition, up to €83.1 billion of NextGenerationEU funds are being used to reinforce several existing EU programs, such as the Just Transition Fund, Horizon Europe, InvestEU, RescEU and ReactEU.
Citation from: https://commission.europa.eu/strategy-and-policy/eu-budget/eu-borrower-investor-relations/nextgenerationeu_en
Repayment of EU borrowing allocated to NextGenerationEU will start as of 2028 and will take place over a long-time horizon – until 2058. The loans will be repaid by the borrowing member states; the grants will be repaid by the EU budget.
To help repay the grant portion of the borrowing, the Commission has proposed additional own resources (or sources of revenue) to the EU budget in 2021. In June 2023, the Commission completed its proposal for a next generation of own resources; presently, the Commission is working with the European Parliament and the member states in the Council towards a swift approval of the new sources of revenue.
The Commission is funding up to 30% of NextGenerationEU by issuing NextGenerationEU Green Bonds. This is expected to make the Commission the largest green bonds issuer in the world.
An interactive map showcasing examples of reforms and investments supported by the Recovery and Resilience Facility is available online.
Further details on the NextGenerationEU plan legal documents in: https://commission.europa.eu/strategy-and-policy/eu-budget/eu-borrower-investor-relations/legal-documents-and-reports_en