About the Recovery and Resilience Plan
NextGenerationEU
On 21 July 2020, EU leaders agreed on a comprehensive recovery package for Europe. The Multiannual Financial Framework (MFF) until 2027 has been substantially boosted with a €750 billion (in 2018 prices) NextGenerationEU recovery package. This is a temporary instrument to help Member States strengthen their economies and social systems, working together to create the Europe we want to live in.
The Recovery and Resilience Facility is the centrepiece of the NextGenerationEU package, which also includes the React-EU initiative (additional cohesion funding for the 2014–2020 programming period) and additional funding for other European programmes or funds such as Horizon 2020, InvestEU, Rural Development and the Just Transition Fund.
The Recovery and Resilience Facility
As the largest part of the NextGenerationEU package, the Recovery and Resilience Facility (RRF) provides €723.8 billion (in current prices) at the EU level, €385.8 billion in loans, and €338 billion in grants to support Member States’ reforms and investments. Countries will be able to benefit from the funds until the end of 2026.
The Slovenian Government has prepared the Recovery and Resilience Plan in accordance with the European Commission’s guidelines as the basis for the use of the RRF. The RRP contains measures aimed at recovery following the COVID-19 pandemic and building resilience, including €1.8 billion in grants and 705 million in RRF loans. The Government submitted the RRP to the European Commission at the end of April 2021 and the Council of the EU approved it by way of an implementing decision in July 2021.
In order to maximise the impact of planned investments, Slovenia will follow the principle of complementarity in planning the use of all European funds. The RRP measures will thus be complemented by investments of the European Cohesion Policy and other programmes.
Member States may decide to increase the amount of repayable funds, if necessary, until August 2023.
Reforms and investments
The European Commission wants to link the use of the new generation of European funds even more closely to the implementation of reforms and has therefore included the RRF in the new European Semester cycle. Reforms supported by investment in particular areas are thus at the heart of Member States’ recovery and resilience plans. Member States will only be able to use the funds to make the investments if they implement the planned reforms.
With the EU priorities included in the RRF, the European Semester will be better able to guide Member States towards successfully implementing the green and digital transition and building a more resilient EU economy.
The Slovenia's RRP sets out an indicative timetable, estimated total costs, milestones and targets. There are 209 milestones and targets linked to the implementation of reforms and investments, of which 69 are linked to the implementation of reforms and 140 to the implementation of investments.
Model estimates prepared by the Office for Macroeconomic Analysis and Development suggest that the implementation of the RRP measures could boost economic growth and increase GDP by an additional 0.8% in 2026
Development areas
Slovenia will direct EU funding for recovery and resilience to the green transition, digital transformation, support to the economy, research and development, education, healthcare, social security, and housing.
The Slovenian RRP foresees 34 reforms and 52 investments on four pillars:
- green transition;
- digital transformation;
- smart, sustainable and inclusive growth;
- healthcare and social security.
The pillars are made up of 16 components in total.
Green and digital transition
The recovery and resilience of Europe’s economy and society is underpinned by the green and digital transition – the ‘double transition’. In accordance with the European Regulation establishing the RRF, Member States provide at least 37% of the funds available in their RRPs for achieving the climate targets and at least 20% for achieving the digital targets.
The Slovenian RRP foresees 42.45% of funding for the climate targets and 21.46% for the digital targets.
The transition to a low-carbon circular economy is one of the key factors for ensuring the long-term productivity of the economy and the overall resilience of society. The reforms and investments of the RRP support the achievement of the objectives of the Integrated National Energy and Climate Plan of the Republic of Slovenia and will contribute to the implementation of the European Green Deal. The funds under the Recovery and Resilience Facility will support the implementation of reforms in the areas of energy efficiency, renewable energy and sustainable mobility and the implementation of measures to better adapt to the effects of climate change. We will also implement reforms and investments to improve the quality of public services in drinking water supply and wastewater discharge and treatment.
All RRP reforms and investments must be in line with the principle of "do no significant harm". For measures where there is a risk of deterioration in specific environmental objectives, appropriate mitigation measures are included in the implementing provisions.
The digital transformation of the economy and the public sector is essential for the long-term development and competitiveness of the country and the European Union as a whole. With a view to increasing the efficiency and resilience of businesses and public administration, we will strengthen and modernise digital infrastructure and support the development of advanced technology solutions through reforms and RRP investments.
