Reform and investment in the Recovery and Resilience Plan

The Recovery and Resilience Plan works with two types of measure. A reform is a systemic change – a new law, a change in how a service is financed, the reorganisation of an institution – which does not by itself consume many resources but changes the rules of how things function. An investment is the concrete outlay of funds on assets, equipment, a building, or a service. The two types are deliberately linked: an investment is generally released only once the related reform has been fulfilled, because the European rules are based on the premise that money alone, without a change in the rules, would bring only a one-off effect. For the recipient, it is important that their project can be delayed even for a reason not directly related to it – for example, because of delayed adoption of legislation. This type of risk is worth taking into account in the schedule.

See also: Recovery Plan component.