05 Oct 2020

Who will really benefit from the Next Generation EU funds?

Cinzia Alcidi / Daniel Gros / Francesco Corti

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Southern and central-eastern European countries will be the biggest beneficiaries of financial support under the new EU Recovery and Resilience Facility and React-EU, as well as of the new Multiannual Financial Framework. Two main risks might reduce the economic impact of these instruments, however: i) the traditionally slow absorption rate of European structural investment funds and ii) limits to the capacity of national governments to channel very large amounts of public investment.