Brussels – The EU Commission has approved Austria’s second request for grants totaling 1.6 billion euros from the NextGenerationEU recovery plan. Austria has successfully met the 67 milestones and targets necessary for the disbursement of the second and third tranches. These accomplishments are centered around reforms intended to enhance investment in digitalization, health, pensions, taxation, and the elimination of fossil fuel heating systems.
The payment request outlines significant progress in implementing 54 reforms and 13 investments. Notable initiatives linked to this payment include accelerating the decarbonization of buildings, instituting a ban on fossil heating systems in new constructions by 2025, and replacing over 30,000 fossil heating systems in existing structures. Additional actions comprise pension reforms, investments in long-term care, and 15,000 digitalization projects targeting small and medium-sized enterprises (SMEs).
The aim is to create a more sustainable and crisis-resistant Europe.
The Recovery and Resilience Facility was established to assist Europe in recovering from the COVID-19 pandemic, forming the core of the NextGenerationEU recovery instrument. The primary objective is to foster a more sustainable, digital, and resilient Europe. A total of up to 672.5 billion euros (at 2018 prices) is allocated for investments and reforms, with 312.5 billion euros designated for grants and 360 billion euros for loans.
Austria is set to receive approximately four billion euros in grants by 2026, contingent on performance-based milestones. Austria must achieve a total of 171 milestones by 2026, with 44 milestones already completed from the first payment request. The initial sum of 1.15 billion euros has been allocated to 27 reform initiatives and 32 investment projects, emphasizing sustainability, digitalization, and social and cultural aspects.
The Commission has submitted its preliminary assessment of Austria’s milestone achievements to the EU Economic and Financial Committee (WFA), which has four weeks to respond. Payment to Austria will proceed following the WFA’s feedback and the Commission’s payment decision.
Minister Plakolm and Minister Marterbauer expressed their satisfaction with the approval. “We have the green light for another 1.6 billion euros to flow from Brussels to Austria. It is crucial that EU funds reach local municipalities and regions, directly benefiting the Austrian people. I advocate for a robust Europe of regions, and this funding enhances competitiveness and sustainability locally,” stated European Minister Claudia Plakolm (ÖVP). Finance Minister Markus Marterbauer (SPÖ) added: “EU funds are channeling into forward-looking reforms and investments, and it is essential for Austria to maintain rapid progress in executing the recovery and resilience plan, with 178 milestones and targets to be met by the end of 2026.” (31.07.2025)
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