On the road to a greener, more digital, more resilient EU that is better adapted to current and future challenges, the temporary Next Generation EU instrument was created to boost recovery from the COVID-19 crisis and is a key element in achieving its goals.
Its core element, the Recovery and Resilience Mechanism (RRM), has 672.5 billion in loans and transfers to support reforms and investments undertaken by EU countries. In addition to mitigating the economic and social impact of the coronavirus pandemic, the goal is to make European economies and societies more sustainable and resilient, and better prepared for the challenges and opportunities presented by the ecological and digital transitions.
The RRM is a direct management instrument. As such, disbursements are made based on the actual achievement of a set of pre-determined milestones and targets.
The criterion for the distribution of the RRM is based on giving greater weight to those Member States with less favourable economic situations as a result of the pandemic.
The RRM funds are allocated in two tranches: 70% on economic indicators prior to the pandemic situation and the remaining 30% will be decided in 2022, taking into account economic developments between 2020 and 2022. Based on the indicators to be used, Spain would receive approximately €60 billion in non-repayable transfers and could access up to €80 billion in loans.