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Economic Impact of the Recovery and Resilience Facility in the Netherlands

Author

Listed:
  • Claudia Fernandez Garcia
  • Johannes Schuffels
  • Valeria Ferreira
  • Luis Pedauga
  • Jose Manuel Rueda Cantuche
  • Daria Ciriaci

Abstract

This paper examines the expected economic impact of the Recovery and Resilience Facility (RRF) in the Netherlands in the medium term and its sectoral and regional distribution, leveraging a novel sectoral database and the dynamic general equilibrium FIDELIO model. The overall results show that the RRF has a total expected impact in the Dutch economy of EUR 13 bn in the medium term, with EUR 4.3 bn in direct impact and EUR 8.8 bn in spillover effects from other Member States' plans. The Dutch 'Construction' sector is expected to benefit the most from the Dutch RRP. This is largely driven by an energy efficiency subsidy, for which we provide evidence that the largest effects in terms of economic impact can be expected in the more rural parts of the country. Regarding spillovers from other Member States’ RRPs, the ‘Wholesale trade’ sector is expected to benefit the most due to Rotterdam’s central role as a logistics hub for the EU. The impact of the RRF in the Netherlands is spread out over the country, with significant differences across sectors. Overall, the findings underscore the importance of considering the EU as a whole when assessing the RRF's impact and highlight that potential effects of the RRF in open and competitive economies are significantly larger than their initial allocation.

Suggested Citation

  • Claudia Fernandez Garcia & Johannes Schuffels & Valeria Ferreira & Luis Pedauga & Jose Manuel Rueda Cantuche & Daria Ciriaci, 2025. "Economic Impact of the Recovery and Resilience Facility in the Netherlands," European Economy - Discussion Papers 232, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:dispap:232
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    More about this item

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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