Digital Measures under the Recovery and Resilience Facility Economic Impacts at Macro, Sectoral and Country Levels

Accelerating the digital transition is a central pillar of the Recovery and Resilience Facility (RRF), the EU’s postCOVID recovery instrument for 2020-2026. Based on November 2025 data, EU member states allocated EUR 148.8 billion (approximatively 0.8% of the EU’s annual GDP) across 676 measures to support the digital transition. This represents around 23% of total RRF funding, surpassing the 20% minimum mandate. This study examines the scope and significance of digital RRF reforms and investments and estimates the economic impact of digital RRF investments. Digital RRF investments are estimated to generate positive effects across all sectors of the economy, through increased demand for final goods, supply-chain linkages, and productivity gains. Simulations using the FIDELIO macroeconomic model show that by 2030, ten years after the launch of the Facility, the cumulative global macroeconomic impact will amount to EUR 302.3 billion, corresponding to a multiplier of around 2, driven by strong productivity effects of investments in high-tech sectors. The study also compares country experiences. Focusing on digital RRF investments, Italy is the largest beneficiary, with estimated impacts significantly exceeding its initial allocation. Other highly integrated economies, including Germany, France, Denmark, Finland, Sweden, Ireland, Luxembourg, Austria, Belgium, and the Netherlands, are estimated to experience economic gains ranging from two to over six times their direct allocations driven by positive cross-border spillovers arising from RRF spending in other Member States. This highlights the role of the Single Market in amplifying the effects of national investments funded by the RRF.