REPORT FROM THE COMMISSION TO THE EUROPEAN …

1 EUROPEAN . COMMISSION . Brussels, COM(2022) 75 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND. THE COUNCIL. on the implementation of the recovery and resilience Facility EN EN. Contents 1. Introduction .. 3. 2. Where do we stand with the implementation of the Facility?.. 5. State of play on the process of implementation .. 5. State of play on the financing of the Facility .. 10. 3. What do the recovery and resilience Plans actually contain? .. 12. RRPs submitted - introductory overview .. 12. Contribution of the Facility to the green transition (pillar 1) .. 14.

2 Contribution of the Facility to the digital transformation (pillar 2) .. 21. Contribution of the Facility to smart, sustainable and inclusive growth (pillar 3) .. 28. Contribution of the Facility to social and territorial cohesion (pillar 4) .. 32. Contribution of the Facility to health, and economic, social and institutional resilience , with the aim of, inter alia, increasing crisis preparedness and crisis response capacity (pillar 5).. 37. Contribution of the Facility to policies for the next generation, children and the youth, such as education and skills (pillar 6) .. 45.

3 Security self-assessments .. 47. 4. Implementation framework of the RRF .. 49. Contribution of the RRF to implementing reforms and other EU policies .. 49. RRF contribution to multi-country projects .. 54. Implementation of the RRF and the involvement of all relevant stakeholders .. 57. Control system and protection of the financial interests of the 60. Complementarity with other EU 62. 5. Conclusion .. 64. 1. Tables and Figures Table 1: State of play on RRF implementation .. 6. Figure 1: Key steps in RRP assessment and pre-financing .. 7. Table 2: Processing of payment requests.

4 8. Figure 2: Estimated timeline for completion of milestones and targets .. 12. Figure 3: Share of RRF funds contributing to each policy pillar .. 13. Figure 4: Climate and additional environmental tag by Member State .. 14. Figure 5: Breakdown of expenditure supporting the green transition (pillar 1) .. 15. Figure 6: Contribution to digital objectives as share of RRP .. 22. Figure 7: Breakdown of expenditure supporting the digital transformation (pillar 2) .. 23. Figure 8: Breakdown of expenditure supporting smart, sustainable and inclusive growth (pillar 3) .. 29. Figure 9: Breakdown of expenditure supporting social and territorial cohesion per policy area (pillar 4).

5 33. Figure 10: Breakdown of expenditure supporting health and resilience per policy area (pillar 5) .. 37. Figure 11: Number of measures supporting health and resilience per policy area (pillar 5) .. 38. Figure 12: Breakdown of expenditure supporting policies for the next generation per policy area (pillar 6) .. 45. Figure 13: Number of reforms per pillar .. 49. Figure 14: Reforms/Investments per Member State .. 50. Figure 15: Shares of CSRs covered by the RRPs, by policy areas (as defined in CeSaR) .. 50. Figure 16: NGEU GDP Impact (%) in QUEST simulations, EU countries.

6 51. Figure 17: NGEU GDP Impact (%) in QUEST simulations .. 52. Table 3: Green multi-country projects in the adopted RRPs .. 55. Table 4: Digital multi-country projects .. 56. 2. 1. Introduction The recovery and resilience Facility, established by Regulation (EU) 2021/241 on 19. February 2021, is the centrepiece of Next Generation EU , the EU response to emerge stronger from the coronavirus pandemic. A year after, the objective of this REPORT is to take stock of the implementation of this extraordinary agenda of reforms and investments. In one year, major steps have been accomplished and implementation is firmly underway.

7 Following months of intense preparation due to their unprecedented scale and scope, member states started to submit their recovery and resilience plans in April 2021. The COMMISSION conducted the assessment phase expediently and the Council adopted the first Council implementing decisions in July 2021. So far, almost all member states have submitted their recovery and resilience plans, 22 of which have been first positively assessed by the COMMISSION and subsequently adopted by the Council. The COMMISSION also launched the discussions with member states to agree on operational arrangements, which set the framework for monitoring the plans' implementation.

8 The COMMISSION raised funds on the capital markets and issued its first green bonds, disbursing EUR billion to date, out of which EUR billion in pre-financing, supporting member states and the Union at a time when the coronavirus pandemic continues to affect their economies. The Facility has entered in the implementation phase, progressing quickly according to the timeline of reforms and investments set by the member states . The first payment request was fully processed in 2021, with the disbursement of EUR 10 billion to Spain in December 2021, while more than 30 payment requests are expected to be submitted in 2022.

9 The calendar of payments is in line with the expected implementation phase of the Facility. The COMMISSION and member states worked closely together to achieve this result. The progress in the implementation of the plans can be followed live on a platform, the recovery and resilience Scoreboard', set up by the COMMISSION in December 2021. This REPORT is the first of a series of yearly reports on the implementation of the Facility1. It provides an overview of the current state of its implementation and of the plans adopted, and details the contribution of the Facility to the climate and digital targets, as required by Article 31 of the Regulation.

10 At this juncture, as the Facility is still in its early stage of implementation, this REPORT describes the Facility's expected contribution to the six pillars according to the measures foreseen in the plans, which will be gradually implemented over the Facility's lifetime. The REPORT then considers the performance of the Facility, taking into account the commitment to investments and reforms embedded in this unique instrument, and discusses the involvement of all relevant stakeholders. It also describes the mechanisms in place for the protection of the Union's financial interests and the articulation between the Facility and other sources of EU funds to avoid double-funding.