The Recovery and Resilience Facility in Austria – Direct Impact and Spillover Effects

Marlies Humpelstetter, Fanny Dellinger, Jozef Vasak, Charlotte Raab, Susanna Ulinski,, Miriam Franzelin, Luis Pedauga, Valeria Ferreira and Jose Manuel Rueda Cantuche

No 242, European Economy - Discussion Papers from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: The Recovery and Resilience Facility (RRF) is estimated to increase Austria’s GDP by EUR 9.3 billion, more than double the size of its national funding allocation. This means that almost 60% of the RRF’s added value to Austria is generated by investments made in other Member States, through so-called spillover effects. These amounts only factor in the impact of RRF investments. The impact of RRF reforms – more difficult to assess at this point - comes on top. This paper conducts an in-depth analysis of the economic impact of the RRF in Austria. It also includes a case study that shows how RRF-supported reforms and investments contribute to the advancement of EU and national decarbonisation objectives. To assess the economic impact of the RRF, it distinguishes between direct impacts that arise from increased domestic spending and spillover effects that are generated by RRF investments abroad. This paper finds that thanks to its deep integration in the single market and strong innovation performance, Austria is among the main beneficiaries of RRF spillovers in the EU. In particular, Austria’s manufacturing and wholesale trade sectors receive a significant boost from the increased spending of other Member States. These findings further underline the added value of a coordinated, EU-wide investment programme and show that the impact of the RRF is far greater than the sum of all national investment plans.

JEL-codes: E61 E65 F15 F17 F41 F42 F62 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2026-04
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Persistent link: https://EconPapers.repec.org/RePEc:euf:dispap:242

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