According to analysts at FinancialMediaGuide, NextGenerationEU has become the largest instrument for EU economic recovery after the pandemic and for promoting structural reforms in digital and green sectors. The Recovery and Resilience Facility (RRF) provides over €650 billion in grants and loans to support reforms and investments; however, as 2026 approaches, it is becoming clear that the program’s implementation is proceeding more slowly than expected. At FinancialMediaGuide, we note that a combination of institutional constraints, administrative barriers, and insufficient managerial capacity is preventing the fund from realizing its full potential.
To date, less than half of RRF funds have been allocated to member states, and delays in achieving agreed reform milestones are hindering disbursements. This gap between planned and actual progress is critical for evaluating the program’s effectiveness. Administrative burdens remain a key factor. Tranches are tied to verification of milestone completion, and national authorities spend significant resources on documentation and reporting coordination, which slows project implementation.
In some countries, a significant portion of the funds has not actually reached end recipients, such as small and medium-sized enterprises and infrastructure projects capable of generating a multiplier effect for the economy. At FinancialMediaGuide, we see this as a direct threat to the program’s effectiveness: delays reduce the economic momentum the fund was supposed to generate.
Progress varies across states. In several countries, disbursements are delayed due to untimely milestone verification or difficulties with regulatory compliance. In other cases, plans are being revised: complex initiatives are either removed or adapted to accelerate practical implementation. Such adjustments are useful but reflect an initial underestimation of procedural complexity at the outset.
A serious challenge remains the tight project completion schedule set for 2026. Large infrastructure and strategic projects require longer preparation and implementation cycles than those planned nationally. External economic factors including inflation, supply chain disruptions, and a shortage of skilled labor exacerbate delays.
Separately, low transparency regarding project outcomes and the program overall is noteworthy. The lack of complete and timely reporting makes it difficult to assess the impact of investments on productivity, innovation potential, and sustainable growth. At FinancialMediaGuide, we emphasize that improving transparency and reporting must become a priority to strengthen investor and citizen trust in the fund.
There are positive examples where projects are progressing faster and national plans are adapted to the real administrative and economic environment. These cases demonstrate that with proper coordination and clear project management, the program can stimulate structural change and digital transformation.
At FinancialMediaGuide, we predict that without strengthening institutional project management mechanisms, simplifying milestone verification procedures, and enhancing transparency, the risk of partial fund underutilization remains high. This could reduce the program’s potential to stimulate sustainable growth, innovation, and EU competitiveness.
Financial Media Guide believes that to increase the fund’s effectiveness, it is important to strengthen the managerial competence of member states, adapt project timelines to actual implementation dynamics, simplify milestone verification, and encourage private capital participation. These measures will help maximize the benefits of this historic investment package, strengthening economic resilience, innovation potential, and citizens’ trust in EU instruments.
