Economic Impact of the Recovery and Resilience Facility in the Netherlands

Claudia Fernandez Garcia, Johannes Schuffels, Valeria Ferreira, Luis Pedauga, Jose Manuel Rueda Cantuche and Daria Ciriaci

No 232, European Economy - Discussion Papers from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: This paper examines the expected economic impact of the Recovery and Resilience Facility (RRF) in the Netherlands in the medium term and its sectoral and regional distribution, leveraging a novel sectoral database and the dynamic general equilibrium FIDELIO model. The overall results show that the RRF has a total expected impact in the Dutch economy of EUR 13 bn in the medium term, with EUR 4.3 bn in direct impact and EUR 8.8 bn in spillover effects from other Member States' plans. The Dutch 'Construction' sector is expected to benefit the most from the Dutch RRP. This is largely driven by an energy efficiency subsidy, for which we provide evidence that the largest effects in terms of economic impact can be expected in the more rural parts of the country. Regarding spillovers from other Member States’ RRPs, the ‘Wholesale trade’ sector is expected to benefit the most due to Rotterdam’s central role as a logistics hub for the EU. The impact of the RRF in the Netherlands is spread out over the country, with significant differences across sectors. Overall, the findings underscore the importance of considering the EU as a whole when assessing the RRF's impact and highlight that potential effects of the RRF in open and competitive economies are significantly larger than their initial allocation.

JEL-codes: C82 E61 E62 F15 F17 F41 F42 F62 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2025-11
New Economics Papers: this item is included in nep-dge and nep-eec
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Persistent link: https://EconPapers.repec.org/RePEc:euf:dispap:232

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