MEPs have called for funding under the EU’s €650 billion post-Covid recovery loan scheme, set to expire at the end of 2026, to be extended for 18 months for projects that are already underway.
Only €315 billion of the Recovery and Resilience Facility, the EU’s landmark post-pandemic fund agreed in 2021, had been disbursed to EU countries by the end of May, leaving just 19 months to spend the rest before expiry.
Earlier this month, the European Commission launched a plan to make it easier for governments to claim the money. But the European Parliament approved a resolution in Strasbourg on Wednesday that urged the executive to go even further.
With a 421 to 180 majority, MEPs adopted a report calling for an extension of the deadline for “mature projects” – projects that are underway already – by 18 months.
“Unless we act now, critical investments risk being left unfinished” at the end of 2026 without an extension, said co-rapporteur Victor Negrescu, an MEP from the Socialists and Democrats.
EU countries had to submit national plans that specify which projects will benefit from the recovery fund and what reforms they will make to please Brussels. They must prove those projects have reached certain targets by August 2026 before receiving the final tranches of cash. The Commission says 68% of those targets are yet to be reached.
On Monday, the commissioner in charge, Raffaele Fitto argued against an extension.
EU countries should “review their plans as soon as possible to only retain measures that can be implemented by the end of August 2026,” he said.
A recovery-fund style model is under consideration for the EU’s next long-term budget, sparking division among national governments.
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