EU Commission suggests RRF savings may fund member state fiscal policies

European Commission Economy Commissioner Valdis Dombrovskis has indicated that EU member states have “a certain margin in terms of liquidity management” regarding the Recovery and Resilience Facility (RRF). This statement addresses the possibility of using savings from PNRR/RRF loans to fund domestic fiscal changes.

In Italy, Economy Minister Giancarlo Giorgetti has proposed using these potential savings to finance a planned exemption from road taxes for small cars and motorcycles scheduled for 2027. Because the RRF is a results-based mechanism rather than a cost-based one, states may encounter financial margins if they complete required reforms and investments at a lower cost than originally projected. This liquidity could allow governments to cover revenue losses from tax exemptions without compromising broader fiscal stability.