WIREDGOV

The European Commission yesterday disbursed €5.1 billion to France in pre-financing, equivalent to 13% of the country's financial allocation under the Recovery and Resilience Facility (RRF). The pre-financing payment will help to kick-start the implementation of the crucial investment and reform measures outlined in France's recovery and resilience plan.

The Commission will authorise further disbursements based on the implementation of the investments and reforms outlined in France's recovery and resilience plan. The country is set to receive €39.4 billion in total, fully consisting of grants, over the lifetime of its plan.

Yesterday's disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of €80 billion in long-term funding, to be complemented by short-term EU-Bills, to fund the first planned disbursements to Member States under NextGenerationEU.  

Part of NextGenerationEU, the RRF will provide €723.8 billion (in current prices) to support investments and reforms across Member States. The French plan is part of the unprecedented EU response to emerge stronger from the COVID-19 crisis, fostering the green and digital transitions and strengthening resilience and cohesion in our societies.

Supporting transformative investments and reform projects

The RRF in France finances investments and reforms that are expected to have a deeply transformative effect on France's economy and society. Here are some of these projects:

• Securing the green transition: The RRF invests €5.8 billion for the renovation of buildings, financing a large-scale renovation programme to increase the energy efficiency of buildings. The RRF also invests in decarbonised hydrogen, with €1.9 billion for the development of value chains for decarbonised hydrogen.
• Supporting the digital transition: The RRF supports the digitalisation of companies with €385 million, by helping business make the best use of digital technologies. The RRF also supports the digitalisation of public administration, improving the efficiency of the public administration and the quality of the working environment of public officials with €500 million.
• Reinforcing economic and social resilience: The RRF finances the modernisation of the health system with €2.5 billion for renovating hospitals and healthcare facilities, building outpatient facilities, and modernising medical infrastructure and equipment. The RRF also supports jobs and training for young people, investing €4.6 billion in training opportunities in higher education and targeted hiring subsidies for youth. The RRF also supports reforms to improve the quality and efficiency of public expenditure.

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