It is a pleasure to return to this House for the 14th Recovery and Resilience Dialogue.
Our dialogues serve an important purpose. So we look forward to continuing our good cooperation during this year and beyond.
Last year was crucial for the Recovery and Resilience Facility, dominated by the revisions of national plans – RRPs.
So, looking back at 2023, what did we achieve?
When we first met last year, it was shortly after the political agreement on REPowerEU. At that time, we had received 27 payment requests and disbursed €142 billion to Member States.
In spring, just after the amended RRF Regulation entered into force, we welcomed the first REPowerEU chapters and the first indications of interest to take up the remaining loans.
We also proposed country-specific recommendations to help Member States revise their plans, with a focus on energy-related reforms and investments.
After the summer, a very intense process followed to finalise the revisions of 27 plans by the end of year deadline.
We also assisted Greece, Slovenia and Croatia to revise their plans in view of the devastating floods and wildfires.
And we made it on time. By the winter break, the Council had endorsed 27 revised RRPs, including 23 REPowerEU chapters.
Those chapters are proof of the ability of the RRF to respond to changing circumstances and new challenges.
However, the accumulation of crises had an impact on the pace of implementation of the existing plans.
There were several reasons for this: the need to divert administrative capacity and to reprogramme certain priorities, as well as the impact of supply disruptions, among others.
Still, in spite of these difficulties, implementation on the ground continued to move ahead.
By the end of 2023, we had doubled the number of payment requests, from 27 to 54.
RRF disbursements rose to more than €220 billion. And we had committed €290 billion in loan support.
In effect, the flow of payment requests accelerated, signalling the renewed focus of implementation.
Between our last dialogue and today, the Commission has disbursed more than €46 billion, including more than €8 billion in REPowerEU pre-financing. And currently we are busy assessing 19 payment requests.
Honourable Members
The revision of plans and assessment of payment requests take a lot of energy. But our focus must also be on showcasing what the RRF is delivering on the ground. And we also need your help for that.
RRF funding is supporting vast amounts of sustainable transport, energy efficiency renovations and renewable energy installations.
Let me give you a couple of examples of green investments.
By the end of 2024, we should see the first waves of renovations of public buildings completed in several Member States, such as Austria, Spain and Belgium. Over time, this will have a visible effect on energy demand.
Or take Germany: its RRP envisages spending €500 million to support hydrogen projects by the end of 2024. Boosting this ecosystem will help its industry to decarbonise.
Despite the challenges posed by inflation and geopolitics, we see a sustained increase in investment in the EU.
The RRF is playing a central role in this.
On one hand, it is boosting public investment – expected to reach 3.4% of GDP in 2024.
On the other hand, it is helping to mobilise private investments through enabling reforms.
The RRPs contain ambitious reforms in key areas identified by the European Semester. These include labour market and employment policies, public finances and taxation, public administration and the business environment, among others.
For example, Italy is reforming its justice system to reduce the length of proceedings. Spain has reformed its labour markets. Cyprus is tackling corruption and protecting whistleblowers.
And with the implementation of REPowerEU chapters, we expect to see a reduction in red tape and the speeding up of planning and permitting procedures in line with EU priorities.
Honourable Members
This will be an important year to show Europeans what we have achieved with the RRF and NextGenerationEU.
Here, I would like to mention the upcoming mid-term RRF evaluation. It will be the first occasion to take stock of what we have achieved halfway through the Facility's lifetime – and very timely, given the upcoming European elections.
At the same time, it will also be a crucial year for Member States to continue putting their plans into effect.
Based on the information they have provided, we should see around 54% of milestones and targets completed by the end of 2024, corresponding to around €100 billion in payments.
This means putting important investment projects into visible and beneficial effect, moving on from just the first steps.
For several Member States, it will also mean catching up on delays – because the clock is ticking.
The Facility will reach the end of its lifetime in 2026.
As we enter this third year of implementation, the Commission is working closely together with all Member States to ensure that the RRF continues to be a success. And we also look forward to working with this House to ensure that the benefits of the RRF are properly understood and communicated as well.
With this, I give the floor to Paolo. Thank you.
