European Parliament approves 18-month funding extension for recovery projects

On June 18, 2025, in Strasbourg, the European Parliament made a significant decision regarding the Recovery and Resilience Mechanism, a crucial financial tool aimed at aiding the economic recovery of EU member states post-COVID-19. The Parliament voted overwhelmingly, with 421 votes in favor, to extend the funding period of this mechanism by 18 months, highlighting the importance of completing ongoing projects and investments. This move comes amid concerns over the current short timeframe for utilizing the funds, as a considerable portion of the milestones and objectives remains unmet, posing challenges for member states to implement necessary reforms and projects. Members of the European Parliament expressed their worry about the risks posed by the impending deadline of August 31, 2026, which could hinder the successful completion of vital initiatives. Romanian MEPs Siegfried Mureșan and Victor Negrescu, who played a pivotal role in the initiative, emphasized the stabilization effect of the mechanism during these economically uncertain times, urging for the simplification of application and reporting requirements to assist smaller applicants. This extension aims to enhance the absorption and impact of the funding, ensuring that it effectively benefits citizens and businesses. Several Slovak MEPs showcased their support for the extension, arguing that extending the funding deadline is in the best interest of Slovakia, particularly as the country has only utilized 55% of its recovery plan funding so far. MEP Lucia Yar highlighted that without this extension, critical investments might remain unfinished, and the delay in payment requests can be attributed to the current government’s inability to efficiently implement the recovery plan. By extending the deadline to the end of 2027, it is anticipated that the quality of project implementations can be preserved, minimizing the risks associated with time pressure. In the context of broader economic recovery, MEPs pointed out that many EU member states are struggling to utilize resources effectively from the recovery plan, often receiving additional time in the past for similar situations. The resolution serves as a call for accommodating member states to ensure that ongoing projects can be completed while boosting the EU's economic resilience post-pandemic. The anticipation for concrete benefits from the Recovery and Resilience Mechanism outlines the need for responsiveness and adaptive measures in the recovery strategies of European nations.