Many countries may lose significant funds, as the European Commission is expected to reject the request for an extension of the post-pandemic Recovery Fund, amounting to 650 billion euros. beyond 2026. The official announcement of the decision, which will cause disappointment in Italy, Spain, Poland and Portugal, is scheduled for June 4.
The Commission will state that there is no legal basis for extending the validity of the Recovery and Resilience Facility, despite the pressures. According to European officials, changing the rules requires unanimity, which is considered impossible due to the opposition of countries such as Germany and the Netherlands, as stated by an article in the politico.com.
The delays in payments are attributed to the program's complex requirements and ambitious targets, while the energy crisis and inflation that followed Russia's invasion of Ukraine have forced many countries to readjust their plans.
The Italian government under Giorgia Meloni insists on expanding the program, with Finance Minister Giancarlo Giorgietti leading the way. On the contrary, Poland has found alternatives, such as the redirection of loans of 6 billion euros. In "dual-use" defense projects, which will be managed by the development bank Gospodarstwa Krajowego.
The Commission
intends to speed up the assessment of applications and give countries more time to prove that they have met the targets, without breaking existing rules. The deadline for submission of applications is 31 August 2026, with the funds having to be disbursed by 31 December 2026.
To date, €315 billion has been disbursed, out of a total of €648 billion in grants and loans. With the time frame narrowing, the Commission seems willing to ease the procedures so that unallocated funds are not returned, but absorption after 2026 without a change of rules is not foreseen.
