Extending the National Recovery Plans beyond 2026 and strengthening EU supervision of their disbursement

Parliament warns that some recovery plans have been more about quick cash than thoughtful reforms. It also points out that large companies have often benefited from support, while small and medium-sized enterprises have been left out.

The report therefore calls on the Commission to monitor targets more rigorously, promote the efficient use of funds and prevent abuse. MEPs want investment to better strengthen energy self-sufficiency, digital infrastructure, defence and health systems - areas that are key to the future stability of the EU.

MEPs place particular emphasis on ensuring that reforms supported by EU money are linked to the rule of law and green transformation.

The Recovery and Resilience Instrument is an emergency EU instrument, approved in 2020 in response to the pandemic. Through this instrument, the Commission raises funds by borrowing on the capital markets (by issuing bonds on behalf of the EU). These funds are then made available to Member States to implement ambitious reforms and investments.

Most of its funds have already been distributed, but MEPs want the Union to make the most of it for its long-term self-sufficiency.

Although the report is not legally binding, it is an important incentive for the European Commission and Member States to prepare further investment strategies.