Source: European Parliament
NextGenerationEU comprises the Resilience and Recovery Facility (RRF) as well as other smaller instruments such as the Recovery assistance for cohesion and the territories of Europe (REACT-EU).
The RRF is a performance-based instrument under which disbursements are made upon satisfactory fulfilment of milestones and targets.
Should the Commission assess that milestones or targets of an instalment are not satisfactorily fulfilled, the payment is suspended in part or in full.
If the Member State does not take necessary measures to fulfil the respective milestones or targets within six months from the suspension, the Commission reduces the amount of the financial contribution and, where applicable, of the loan.
When the implementation of projects is no longer achievable, either partially or totally, by the Member State concerned because of objective circumstances, the Member State may make a reasoned request to the Commission to make a proposal to amend or replace the measures concerned in the Plan[1].
The conditions under which an entity/beneficiary must repay the funds depend on the specific terms of the relevant measure, as set by the national authorities.
Member States are the beneficiaries of the RRF, where disbursements are made upon fulfilment of the relevant milestones and targets. Final recipients, such as municipalities for instance, receive funding from RRF-supported measures upon fulfilment of the specific conditions of the concerned measures.
For the purpose of audit and control, Member States should collect and ensure access to a list of any measures for the implementation of reforms and investment projects under the plan with the total amount of public funding of those measures and indicating the amount of funds paid under the Facility and under other EU funds.
- [1] https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32021R0241 see Article 21.