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The Recovery and Resilience Facility in Austria – Direct Impact and Spillover Effects

Author

Listed:
  • Marlies Humpelstetter
  • Fanny Dellinger
  • Jozef Vasak
  • Charlotte Raab
  • Susanna Ulinski,
  • Miriam Franzelin
  • Luis Pedauga
  • Valeria Ferreira
  • Jose Manuel Rueda Cantuche

Abstract

The Recovery and Resilience Facility (RRF) is estimated to increase Austria’s GDP by EUR 9.3 billion, more than double the size of its national funding allocation. This means that almost 60% of the RRF’s added value to Austria is generated by investments made in other Member States, through so-called spillover effects. These amounts only factor in the impact of RRF investments. The impact of RRF reforms – more difficult to assess at this point - comes on top. This paper conducts an in-depth analysis of the economic impact of the RRF in Austria. It also includes a case study that shows how RRF-supported reforms and investments contribute to the advancement of EU and national decarbonisation objectives. To assess the economic impact of the RRF, it distinguishes between direct impacts that arise from increased domestic spending and spillover effects that are generated by RRF investments abroad. This paper finds that thanks to its deep integration in the single market and strong innovation performance, Austria is among the main beneficiaries of RRF spillovers in the EU. In particular, Austria’s manufacturing and wholesale trade sectors receive a significant boost from the increased spending of other Member States. These findings further underline the added value of a coordinated, EU-wide investment programme and show that the impact of the RRF is far greater than the sum of all national investment plans.

Suggested Citation

  • Marlies Humpelstetter & Fanny Dellinger & Jozef Vasak & Charlotte Raab & Susanna Ulinski, & Miriam Franzelin & Luis Pedauga & Valeria Ferreira & Jose Manuel Rueda Cantuche, 2026. "The Recovery and Resilience Facility in Austria – Direct Impact and Spillover Effects," European Economy - Discussion Papers 242, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:dispap:242
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    More about this item

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • 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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