EU Recovery Plan: Commission approves €1.6 billion for Austria
Brussels – On Friday, the EU Commission approved Austria’s second payment request for grants of 1.6 billion euros under the NextGenerationEU recovery plan. Austria has met the 67 milestones and targets required for the second and third tranches. These involve reforms aimed at supporting investment initiatives in the areas of digitalization, health, pensions, taxation, and the phase-out of fossil heating systems.
The payment request includes important steps for the implementation of 54 reforms and 13 investments. Key measures related to this payment request include accelerating the decarbonization of buildings, including a ban on fossil heating systems in new buildings starting in 2025, as well as the replacement of over 30,000 fossil heating systems in existing buildings. Other measures include a pension reform, investments in long-term care, and 15,000 digitalization projects focusing on small and medium-sized enterprises (SMEs).
The goal is a more sustainable and crisis-resistant Europe
The Recovery and Resilience Facility was created to support Europe in the aftermath of the COVID-19 pandemic. It is the centerpiece of the NextGenerationEU recovery instrument. According to the Commission, the fundamental goal is to make Europe more sustainable, digital, and resilient to crises. A total of up to 672.5 billion euros (at 2018 prices) is to be allocated to support investments and reforms. Of this, 312.5 billion euros are earmarked for grants and 360 billion euros for loans.
The total amount of around four billion euros for Austria is to be disbursed in the form of grants by 2026. These are performance-based. So-called “milestones” and “target values” must be achieved; Austria must accomplish 171 by 2026. With the first payment request, 44 targets have already been checked off. 1.15 billion euros went to 27 reform and 32 investment projects, focusing on sustainability and digitalization, but also on social and cultural aspects.
The Commission has now submitted its preliminary assessment of Austria’s achievement of the milestones and targets to the EU Economic and Financial Committee (WFA). The WFA has four weeks to provide its opinion. Payment to Austria can be made after the WFA’s opinion and the adoption of a payment decision by the Commission.
Plakolm and Marterbauer welcome approval
“We have the green light for another 1.6 billion euros to flow from Brussels to Austria. It is important to me that EU funds reach the municipalities and regions and that the Austrians benefit directly from them. I stand for a strong Europe of regions, and this funding directly contributes to greater competitiveness and sustainability on the ground,” said European Minister Claudia Plakolm (ÖVP) in a joint statement with Finance Minister Markus Marterbauer (SPÖ). He emphasized: “EU funds are flowing into forward-looking reforms and investments. It is also important that Austria continues to make swift progress in implementing the recovery and resilience plan. By the end of 2026, 178 milestones and target values must be achieved.” (31.07.2025)
