The European Commission has issued a positive preliminary assessment of France’s payment request for €3.26 billion under NextGenerationEU, marking the fourth instalment of France’s Recovery and Resilience Plan. This funding, provided through the Recovery and Resilience Facility (RRF)—the core of NextGenerationEU—follows France’s fulfillment of specific milestones and targets tied to this tranche. These include eleven investments spanning energy efficiency in public buildings, sustainable transport infrastructure, digitalization of businesses, cultural sectors, schools, and healthcare, alongside two reforms aimed at reducing greenhouse gas emissions in cities and improving public spending quality.
Earlier France submitted this fourth payment request demonstrating progress on milestones and targets outlined in its plan. Post disbursement, payment will bring the total funds received by France under the RRF to €34.13 billion, covering 82% of its planned milestones and targets. The €40.3 billion allocated to France under the RRF supports wide-ranging reforms and investments to enhance sustainability, resilience, and readiness for green and digital transitions.
The Commission has forwarded its assessment to the Economic and Financial Committee, which has four weeks to provide its opinion. A positive opinion will lead to a final payment decision, enabling the disbursement of the €3.26 billion to France. NextGenerationEU’s is playing an important role in driving economic recovery and transformation across the EU. .
NextGenerationEU (NGEU) is a temporary recovery instrument launched by the European Union to support its member states in recovering from the economic and social impacts of the COVID-19 pandemic while fostering a greener, more digital, and resilient future. Agreed upon in July 2020 and adopted in December of that year, it represents the largest stimulus package ever financed through the EU budget, with a total value of €750 billion (at 2018 prices), roughly split between grants and loans. This funding is tied to the EU’s 2021-2027 Multiannual Financial Framework (MFF), effectively doubling the EU budget during its operational period from 2021 to 2026.
The centerpiece of NGEU is the Recovery and Resilience Facility (RRF), which provides up to €672.5 billion (€312.5 billion in grants and €360 billion in loans) to member states based on their national Recovery and Resilience Plans. These plans outline reforms and investments aimed at addressing structural challenges, boosting economic growth, and aligning with EU priorities like climate action (at least 37% of funds per plan) and digital transformation (at least 20%). The remaining €77.5 billion supports other EU programs, such as Horizon Europe, InvestEU, the Just Transition Fund, and REACT-EU, which focus on innovation, sustainable investment, and regional cohesion.
Its impact include Italy channeling €500 million to enhance autonomy and skills for people with disabilities, and Luxembourg dedicating over 80% of its allocation to climate and clean energy goals. Since February 2024, local campaigns have highlighted NGEU-funded projects, with progress trackable via the Recovery and Resilience Scoreboard or an interactive map of initiatives across the EU. Program continues to roll out with ongoing efforts to balance immediate recovery needs with long-term transformation.
To finance NGEU, the European Commission borrows on international capital markets, issuing bonds (including green bonds) and shorter-term securities. Repayment of the loans falls to the borrowing member states, while the grants will be repaid through the EU budget, with repayments scheduled to begin in 2028 and extend until 2058. To cover the grant portion, the Commission has proposed new revenue sources, or “own resources,” for the EU budget, though these are still under discussion.
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