What is the Recovery and Resilience Mechanism and what is it for?
The Recovery and Resilience Mechanism (or RRF) is a new European Union (EU) financial instrument with a global allocation of 672.5 billion euros, created specifically to finance the recovery of the crisis economy of the coronavirus. Through grants (€ 312.5 billion) and loans (€ 360 billion), it will support investments and reforms that contribute to repairing the damage that the pandemic has caused to the economic and social fabric, and that have a lasting impact, to reinforce the potential growth and ensure a more sustainable future. The RRF is one of several elements that make up the recovery fund of 750 billion euros, which was baptized by the European Commission as “Next Generation EU” and that will be constituted through the issue of joint EU debt. It is, therefore, a temporary emergency instrument, independent and distinct from the other Community programs, and with a limited duration: it will be in force between 2021 and 2026.