BRIEFING

Next Generation EU (NGEU) delivery –

How are the Member States doing?

The Netherlands' National

Recovery and Resilience Plan
Latest state of play
Overall resources
The Netherlands is set to receive €5 441.4 million, solely in
grants, to implement its national recovery and resilience plan
(NRRP). The plan is relatively small compared with most
Member States' plans, with a value of 0.7 % of Dutch gross
domestic product (GDP) in 2019 (0.51 % in 2023). The original
plan was awarded with €4 707.1 million from the Recovery
and Resilience Facility (RRF). On 17 October 2023, the plan
was amended to include an ambitious REPowerEU chapter
along with other updates, allocating €734.4 million (including
€280 million transferred from the Brexit Adjustment
Reserve) to bolster energy resilience and sustainability and
address the impact of Russia's war of aggression against
Ukraine. Further targeted amendments to the plan were
approved on 5 November 2024.1
On 24 September 2024, the Netherlands received its first payment of €1 333 million (24.5 % of the
total allocated amount) without initial pre-financing, making it one of the last Member States to
receive funding under the RRF. Another four payments are contingent on further progress in
implementation. The European Commission, in its 2024 country report, considers the plan's
implementation to be significantly delayed owing to investment bottlenecks and labour shortages.
The Council has urged the Netherlands to accelerate efforts to ensure all reforms and investments
are completed by the August 2026 deadline.
Devoting 54.9 % of the resources to the green transition, the Dutch plan is among the most ambitious
in this field. The plan also allocates 25.6 % of the funds (excluding the REPowerEU chapter) to the
digital transition, while some 14 % of the resources contributes to the REPowerEU objectives. The
plan is expected to address several structural weaknesses in addition to supporting economic
recovery. The European Parliament participates in interinstitutional forums for cooperation and
discussion on RRF implementation, and scrutinises the Commission's work.

This briefing is one in a series covering all EU Member States.

EPRS | European Parliamentary Research Service

Authors: Božena Destin Bobková; Graphics: Lucille Killmayer
Next Generation EU Monitoring Service, Members' Research Service
PE 739.275 – December 2024 EN
EPRS | European Parliamentary Research Service

Country-specific challenges
In the context of the European Semester, the Council adopts country-specific recommendations
(CSRs), providing Member States with policy guidance on how to boost jobs, growth and
investments, while maintaining sound public finances. NRRPs under the RRF must address at least
a significant subset of the challenges identified in the 2019, 2020 and 2022 CSRs. The European
Commission grouped the Netherlands' 2019-2022 CSRs into 11 categories: (i) renewable energy and
infrastructure; (ii) transport; (iii) environmental policy and sustainable agriculture; (iv) wages;
(v) research and innovation (R&I); (vi) pension systems; (vii) housing; (viii) labour market and social
inclusion; (ix) skills and vocational training; (x) tax administration and anti-money laundering; and
(xi) healthcare.
One of the most important challenges identified are the persistent macroeconomic imbalances,
driven by a high current account surplus and high private debt. Distortive tax incentives for debt-
financed housing and high obligatory pension savings leave households vulnerable to economic
shocks and contribute to an over-valued housing market. The CSRs called for reducing mortgage
tax advantages, increasing private rental housing supply, and implementing pension reforms to
enhance fairness. According to the CSRs, labour market segmentation, skill shortages, and reliance
on flexible contracts further hindered resilience and competitiveness. Structural labour shortages in
sectors such as healthcare, education, and information and communications technologies pose risks
to recovery and the green and digital transitions. The Council recommended fostering permanent
employment, improve social protections, and enhance upskilling opportunities for vulnerable
groups. Another challenge identified are below-target investments, particularly in R&I. The CSRs
emphasised boosting public and private R&I investment, particularly in key areas such as energy
transition or digitalisation, to foster innovation and support long-term growth and competitiveness.
Challenges in renewable energy deployment included delays in meeting the EU's 2030 climate
targets, electricity grid constraints, and excessive nitrogen emissions, which restricted economic
activity and housing construction. The CSRs stressed the need for investment in renewable energy,
sustainable transport, energy-efficient buildings, and grid modernisation. The COVID-19 pandemic
highlighted workforce shortages in healthcare and the need for improved digital tools, with CSRs
recommending strengthened healthcare infrastructure and e-health solutions. Lastly, the
Netherlands was urged to address aggressive tax planning and money laundering.
While the original Dutch NRRP addressed many of these challenges, it only partially tackled issues
such as housing market distortions, labour market reforms, and skills gaps. The modified 2023 NRRP
introduced measures such as upskilling budgets for unemployed individuals and healthcare training,
taking into account the 2022 CSRs. New REPowerEU measures seek to expand investment in energy
efficiency and grid capacity, thereby supporting the green transition and addressing key priorities
for 2022 and 2023.
The 2024 country report highlights continued challenges, in particular concerning the labour market,
skills shortages, investment bottlenecks and macroeconomic imbalances. According to the report,
the structural labour shortages both impede progress in the green and digital transitions and hinder
the implementation of the NRRP, significantly delaying reforms and investments. Moreover, public
investment, particularly in R&I, remain below target. Electricity grid congestion restricts access and
delays renewable energy deployment, while excessive nitrogen emissions limit economic activity
and the construction of new dwellings. Although planned investment aims to address grid capacity,
the expected demand from the shift to renewables is likely to outpace these improvements, slowing
the clean energy transition and the roll-out of renewables. Macroeconomic imbalances linked to a
significant current account surplus and high private debt, as well as an over-valued housing market,
also remain key issues, despite some progress through recent macro-prudential policies. The
Council's 2024 CSRs provide targeted recommendations and particularly stress the need to
accelerate NRRP implementation significantly, including the REPowerEU chapter.

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Objectives and structure of the plan

Following the COVID-19 pandemic, the
recovery plan for the Dutch economy Figure 1 – Breakdown of funding by component
should act as a catalyst for more
sustainable, smarter and more inclusive
growth. In addition, it should strengthen
social cohesion and make Dutch society
more resilient to crises. Important goals
include promoting the green transition,
particularly in the energy sector, and
accelerating the digital transformation.
The plan addresses a significant subset of
the challenges identified in the European
Semester and the CSRs.
On 16 September 2024, the Netherlands submitted its latest revision of the plan, amending
16 existing measures to improve implementation, by using better alternatives, reducing
administrative burden, and redistributing a few milestones. The amended plan consists of
29 investments and 23 reforms grouped under eight components (see Figure 1).
C1 – Promoting the green transition. The measures in this component contribute directly
to accelerating the Dutch climate and energy transition and addressing the low share of
renewables in gross final energy consumption, traffic congestion, as well as the excessive
nitrogen deposition, one of the main environmental challenges the Netherlands is facing.
Examples of measures include a reform of energy taxation, car taxation, and energy law.
Other measures are designed to stimulate sustainable energy through investment in
infrastructure around windfarms at sea and in hydrogen technologies. This component is
the biggest in the plan.
C2 – Accelerating the digital transformation. To increase the Netherlands' sustainable
national learning capacity, this component includes investment in knowledge development,
research, and developments in innovation. Important investments in this regard include, for
instance, those in artificial intelligence (AI) and quantum technology. Investments in the
digitalisation of education and the logistics sector, as well as in digital skills, are also
planned.
C3 – Improving the housing market and making real estate more energy efficient. The
measures in this component aim to tackle long-term problems in the housing market by
increasing the supply of new dwellings and by improving the conditions for public housing
in the context of climate adaptation. For example, the construction of affordable housing
is encouraged with investment in the construction of more sustainable houses.
C4 – Strengthening the labour market, pensions and future-oriented education to address
the structural labour and skills shortages, as well as pension system issues, among other
things. The aim is to upgrade the legal framework for the labour market, tax and pension
systems in this regard, and to ensure a future-proof workforce employability. For example,
efforts are made to strengthen livelihood security for low- and middle-income earners, as
well as to promote equal opportunities and strengthen skills developments to ensure
competitiveness. Attention is also given to an adequate pension for all generations. This is
the second biggest component of the plan.
C5 – Strengthening the public health sector and pandemic preparedness. The Dutch
healthcare system is experiencing major staff shortage. To address this problem, the NRRP
includes measures such as investing in temporary additional personnel in times of crises

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and extending intensive care. Furthermore, efforts are being made to strengthen pandemic
preparedness.
C6 – Tackling aggressive tax planning and money laundering. The measures in this
component primarily aim to combat tax avoidance, broaden the tax base, and balance the
taxation of multinational companies. This component consists of reforms not linked to any
financial costs.
C7 – Audit and control. The key tasks under this component concern setting up a
monitoring and audit system for the implementation of the RRF. The component is not
linked to any financial costs.
C8 – REPowerEU. One reform and one investment included in this new component
contribute to an increase in the share of renewable energy in the country's energy mix, and
address congestion of the electricity grid.
Gender equality is among the horizontal aspects in the NRRPs. The Netherlands' NRRP focuses on
gender equality in its Section 3.1.3., including reimbursement of child day-care costs of up to 95 %,
paid parental leave, and promotion of equal representation of women in management posts and the
digital sector. According to the Commission's assessment, some 3 % of the measures under the plan
are focused on gender equality.
Table 1 – RRF allocation for the Netherlands by component and by investment (€ billion)
Component Investment Cost Share of
(€ million) total

C1 – Promoting the green 1.1 Offshore wind 693.7 12.7 %

transition
1.2 Green power of hydrogen 68.5 1.3 %

1.3 Inland waterway energy transition, Zero 56.0 1.0 %

Emission Services (ZES) project

1.4 Aviation in transition 28.7 0.5 %

1.5 Nature programme 714.3 13.1 %

1.6 Aid scheme for the rehabilitation of pig farms 275.1 5.1 %

1 836.3 33.7 %

C2 – Accelerating the digital 2.1 Quantum Delta NL 263.9 4.8 %

transformation
2.2 AI for the Netherlands (AI Ned) and applied 59.9 1.1 %
AI learning communities

2.3 Digital education impulse 209.4 3.8 %

2.4 Digital infrastructure logistics 36.2 0.7 %

2.5 European Rail Traffic Management System 149.0 2.7 %

(ERTMS)

2.6 Safe, smart and sustainable mobility 5539 1.0 %

2.7 Intelligent roadside stations (iWKS) 128.9 2.4 %

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 The Netherlands' National Recovery and Resilience Plan

Component Investment Cost Share of

(€ million) total

2.8 Groundbreaking IT (GrIT) 94.1 1.7 %

2.9 Digitalisation of the criminal justice chain 75.2 1.4 %

1 071.8 19.7 %

C3 – Improving the housing 3.1 Unlocking new construction projects 538.0 9.9 %
market and making real estate
more energy efficient 3.2 Subsidy scheme for sustainability of public 225.3 4.1 %
sector real estate

3.3 Investment subsidy for sustainable energy 624.0 11.5 %

and energy savings

1 387.3 25.5 %

C4 – Strengthening the labour 4.1 'The Netherlands continues to learn' 94.6 1.7 %
market, pensions and future-
oriented education 25.0 0.5 %
4.2 Up- and reskilling budget for the unemployed

4.3 National Education Lab AI 36.0 0.7 %

4.4 Support for newcomers to prevent learning 42.0 0.8 %

losses

4.5 Support for pupils in the last year of 19.5 0.4 %

secondary school

4.6 Laptops and tablets for online and hybrid 24.0 0.4 %
education to combat and mitigate learning losses

241.1 4.4 %

C5 – Strengthening the public 5.1 Temporary additional human resources 49.0 0.9 %
health sector and pandemic capacity for care in times of crisis
preparedness
5.2 Extension of intensive care 50.7 0.9 %

5.3 SET COVID-19 50.0 0.9 %

5.4 Health Research Infrastructure (HRI) 22.0 0.4 %

171.7 3.2 %

C6 – Tackling aggressive tax 6.1 Tackling aggressive tax planning and money 0 0
planning and money laundering laundering

0 0

C7 – Audit and control 7.1 Audit and control 0 0

0 0

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Component Investment Cost Share of

(€ million) total

C8 – REPowerEU 8.1 REPowerEU (scaled-up measure

3.3 Investment subsidy for sustainable energy 735.0 13.5 %
and energy savings)

735.0 13.5 %

Total 5 443.2 100 %

Source: The Netherlands' NRRP and revised annex to the Council implementing decision, 9 October 2023.
Note: The estimated total cost of the modified NRRP is slightly higher than the maximum contribution available
from the RRF, and the difference will be covered from national resources.

Reforms
The Netherlands' NRRP includes 23 reforms under seven out of the eight components (see Table 2).
While component 5 – Strengthening the public health sector and pandemic preparedness – does
not include any reforms (and is therefore not depicted in the table), component 6 – Tackling
aggressive tax planning and money laundering, and component 7 – Audit and control, include only
reforms.
The Netherlands' plan includes commitments to fight aggressive tax planning. Six reforms in this
area concern imposing a conditional withholding tax on dividends paid to low-tax jurisdictions;
introducing a law on countering mismatches in the application of the arm's length principle;
preventing an exemption through a specific interest deduction limitation; limiting liquidation and
cessation arrangements; and limiting loss relief.
Table 2 – Examples of reforms under the Netherlands' NRRP

Energy Public Increasing Reducing the Reforming Central Energy market

taxation information vacant deduction for Dutch tax repository reform
reform management / possession the self- policy system for package
Introduction Open value ration employed Tackling monitoring
and tightening Government Phasing out Disability mismatches in implementa-
of CO2 levy for Act tax exemption insurance for the application tion of the
RRF
Examples of reforms by component

industry for gifts to the self- of the arm's

Increasing the finance home employed length Legal
air travel tax purchases Reforming the principle mandates and
Centralised second pillar Amending assignments
Reforming car necessary for
taxation planning to of the pension specific
increase system interest the
Energy law housing supply deduction coordination,
Tackling bogus monitoring
Increasing self- limitation to
prevent tax and control of
income- employment NRRP
dependency of exemptions on
negative implementa-
rent tion
interests and
Accelerating positive
residential currency
construction results
process and
procedures Anti-money-
laundering
policy

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Abolition of Connection of In 2022, Increase social Introduction of Set up and Change the
reduced tax administrative everyone aged protection a withholding carry out electricity grid
rate for bodies to a between 18 coverage for tax on system audits rules to
greenhouse digital and 40 years is the self- dividends paid and prioritise
horticulture, infrastructure entitled to a employed to low-tax substantive energy
giving greater maintained by one-off tax through a jurisdictions testing related infrastruc-ture
incentive to the Ministry of exemption for disability and in to the projects at the
using less the Interior the receipt of insurance situations that Netherlands' provincial level
energy and Kingdom gifts of up to mandatory by constitute tax NRRP by Adapt the
Phasing out of Relations, €106 671 law, leading to abuse under 'Audietdienst framework
the tax providing Conclusion of a more level Dutch anti- Rijk' wherein
exemption public access agreements playing field abuse Central network
aimed at to at least between between regulations repository operators
passenger 330 000 national employed and Reinforcement system for prioritise their
cars, documents government self-employed of the monitoring invest-ments
Examples of activities

motorcycles and provinces Reform of the Financial RRF to ensure that

and small vans on the second pillar Intelligence implementa- invest-ments
for province- of the pension Unit by tion will collect into the
entrepreneurs, specific system (which employing 20 data and electricity grid
in particular, number of consists of additional full- monitor the are the ones
results in a new dwellings additional time achievement most needed
switch to to be realised, pension on top equivalents, of milestones to reduce
electric including by of the legal and entry into and targets congestion
delivery vans, transformation pension), force of a law
which reduces , totalling at including entry that
CO2 emissions 900 000 new into force of introduces a
and improves dwellings to the law limit on cash
air quality be completed reforming the payments
by 2030, of system's
which 600 000 second pillar,
must be which will
affordable abolish the
systemic
redistribution
between
different age
groups

Investment
The 29 investments included in the amended Dutch NRRP complement measures financed under
the EU Cohesion Fund in the 2021-2027 programming period (€2 billion). Jointly, these resources
amount to some €7.5 billion.
Topping the list of the NRRP's 10 largest investments is the subsidy for sustainable energy and
energy savings. It will be financed jointly under components 3 and 8 with a total amount of nearly
€1.4 billion. It represents a quarter of the NRRP allocation.
Table 3 – Examples of investment measures under the Netherlands' NRRP, by component

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Nature Safe, smart and Unlocking new 'The Temporary Scaled-up

Examples of investments
programme sustainable construction Netherlands additional investment
Aid scheme for mobility projects continues to human subsidy for
rehabilitation of Quantum Delta Investment learn' resources sustainable
pig farms NL subsidy for Regional capacity for energy and
sustainable mobility teams care in times of energy savings
energy and (RMTs) crises
energy savings Extension of
intensive care

Provinces will Contribution to Financial Establishment At least 8 325 An additional

implement the replacement support for of 35 RMTs in people will 355 600
quality of the existing municipalities 35 labour participate in interventions
improvement analogue train through a market regions. vocational (solar boilers,
actions in and protection subsidy scheme The aim is to education and thermal
around system with the that leads to prevent training (as connections,
Natura 2000 European digital the unemployment part of the insulation, heat
areas, such as standard for construction of or keep the professional pumps, and
hydrological train protection at least 100 000 unemployment healthcare electric cooking
actions, and control, the dwellings by period as short education in installations)
conservation European Rail mid-2026 being as possible, the academic (see
and Traffic launched with a focus on year component 3)
optimisation of Management At least the 2023/2024). A
the layout of System 225 000 unemployed national
nature areas, (ERTMS). interventions and people reserve of at
recreational Granting (solar boilers, furthest away least 2 500
Examples of activities

zoning or Quantum Delta thermal from the labour former

control of NL support connections, market healthcare
invasive species under the insulation, heat professionals
Compensation National Growth pumps, and will be created
will be granted Fund to electric cooking Financial
for terminating stimulate installations) support for
275 pig farms, quantum subsidised to 51 hospitals to
which will computing and achieve a adapt facilities
reduce ammonia networking, and reduction in and increase
emissions by at support primary energy the number of
least 900 000 kg research and demand of at fixed and
compared with skills least 30 % on flexible
2019 developments average intensive care
in the quantum beds, and for
field 67 hospitals to
train and
educate their
staff in order to
increase the
capacity of
intensive and
clinical care
units

Governance
According to the Commission, the Netherlands has proposed a comprehensive system for control,
monitoring and implementation of its NRRP.

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 The Netherlands' National Recovery and Resilience Plan

For effective implementation, a special Programme Management Directorate has been establlished
at the Ministry of Finance, which is in charge of the monitoring and implementation of the plan and
the protection of the EU's financial interests. The directorate is acting as the main coordinating body
responsible for overall coordination of the Dutch plan, reporting on the progress of milestones and
targets, submitting payment requests and drawing up the management declaration.
Dutch implementing bodies such as ministries, agencies and consortia have to confirm the
protection of the EU's financial interest and the validity of the reported data on milestones and
targets through intermediary-declarations. These declarations are then verified and signed by each
ministry's Financial Economic Affairs Directorates for the plan's respective policy areas. Progress
and implementation of the plan are discussed and reviewed at least once a year in an
interdepartmental consultation. This functions as a formal consultative body at the central
government level.
Moreover, the Dutch national audit authority Auditdienst Rijk, an independent service within the
Ministry of Finance, is responsible for conducting audits of the effects, costs, efficiency and
effectiveness of the policies pursued in the context of the NRRP.
Finally, the Dutch NRRP also includes measures improving the financial management, such as the
use of the EU anti-fraud and financial risk scrolling tool Arachne and a special procedure to prevent
double funding. In addition, in line with the RRF Regulation, the government published a list of the
100 biggest beneficiaries of RRF funds.

Commission assessment
On 14 October 2024, the Commission
Figure 2 – Commission ratings by criteria assessed the latest amendments and
confirmed its positive evaluation of the NRRP,
enabling the Council to approve the updated
plan on 5 November 2024. This follows an
earlier submission of 6 July 2023, which
incorporated a new REPowerEU chapter and
was endorsed by the Commission on
29 September 2023.
For 12 out of the 13 assessment criteria set in
the RRF Regulation (Annex V), the
Commission gave the highest possible rating
(A) to the plan. The NRRP is thereby
expected, to a large extent, to have a lasting
Data source: European Commission, SWD(2023) 324. impact on the Netherlands. Similarly to other
Member States, criterion No 9 (costing)
received a B (medium) rating. According to
the Commission, the justification provided on the amount of the estimated total costs of the NRRP
(including REPowerEU) is, to a medium extent reasonable and plausible, in line with the principle of
cost-efficiency, and is commensurate to the expected national economic and social impact.
Under criterion No 1, the Commission concludes that the Dutch plan represents, to a large extent, a
comprehensive and adequately balanced response to the economic and social situation, and
contributes appropriately to all six pillars of the RRF. Under criterion No 2, the Commission finds
that the plan is expected to contribute to a subset of challenges identified in the CSRs, including
fiscal aspects. Furthermore, the Commission expects that the plan can have high impact on
strenghtening the growth potential, job creation and economic, social and institutional resilience of
the Netherlands, helping to implement the European pillar of social rights (criterion No 3).
The Commission concludes that the plan is expected to ensure that no measure for the
implementation of reforms and investment projects included in it does significant harm to

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environmental objectives (criterion No 4), and that it contains measures that contribute to a large
extent to the green transition, including biodiversity (criterion No 5). The Commission is of the
opinion that the plan contains measures that contribute to a large extent to the digital transition
(criterion No 6), and that it is expected, to a large extent, to bring about a structural change in other
policy areas, and to have a lasting economic and societal impact (criterion No 7).
The arrangements proposed in the plan are considered adequate to ensure its effective monitoring
and implementation, and to prevent, detect and correct corruption, fraud and conflicts of interests
(criteria Nos 8 and 10). Additionally, under criterion No 11, the Commission considers that the plan
contains measures for the implementation of reforms and public investments, which, to a high
extent, represent coherent actions.
Furthermore, the measures in the REPowerEU chapter are expected to improve deployment and
integration of renewable energy sources and thereby help reduce reliance on fossil fuels and
contribute to increasing energy security and diversification of the EU's energy supply
(criterion No 12). The Commission considers that all REPowerEU measures included in the plan have
a cross-country or multi-country dimension or effect (criterion No 13).

Council decision and pre-financing

The Netherlands was the last EU Member State to submit an NRRP, in July 2022. Most Member
States submitted their plans between April and June [Link] delay in submission of the Dutch
NRRP was due, among other factors, to the national elections held in March 2021 and the time it took
to form a new government. The Council, in its Economic and Financial Affairs (Ecofin) configuration,
adopted its implementing decision on the plan's approval on 4 October 2022. The Netherlands did
not receive the 13 % pre-financing of the plan, whose disbursement was conditional on the
finalisation of the approval of the plan by the end of 2021.
Nine months after the Council approval, the Netherlands sent to the Commission a modified NRRP,
requesting changes relating to the possibility to use the additional resources under the REPowerEU
(€734.4 million), and adjustments caused by objectives circumstances, such as technological
progress, increased costs and interest rates, and labour shortages (Article 21(1) RRF Regulation).
On 17 October 2023, the Council approved the modified plan including a new REPowerEU chapter.
The Council confirms that the Netherlands is set to receive €5 441.4 million (current prices, rounded)
in grants only, over the plan's lifetime. This is slightly less than the total estimated cost of the plan
(€5 443.3 million). The EU financial contribution consists of €4 707 million in RRF grants,
€454.4 million in REPowerEU grants, and €280 million transferred from the Brexit Adjustment
Reserve to support REPowerEU measures.
The operational arrangements – a document that specifies some aspects of the implementation
such as timelines for payment requests, monitoring of indicators, milestones and targets, and access
to underlying data – was signed between the Netherlands and the Commission on 22 February 2024.
It is a pre-condition for submitting payment requests to the Commission. After the Netherlands
submitted its amended plan on 16 September 2024 and its positive assessment by the Commission,
the Council adopted its amended implementing decision and revised annex on 5 November 2024.

European Parliament
Following the outbreak of the pandemic, the European Parliament was a major advocate of launching
a common EU recovery instrument, and established the RRF as co-legislator with the Council. Based
on the RRF Regulation and the interinstitutional Agreement (IIA) on budgetary matters, Parliament
can scrutinise the European Commission's work on assessing national plans. Within Parliament, the
Conference of Presidents has established a standing working group on the scrutiny of the RRF,
comprising the Committee on Budgets (BUDG) and the Committee on Economic and Monetary

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 The Netherlands' National Recovery and Resilience Plan

Affairs (ECON). This working group prepares and follows up on the recovery and resilience dialogue
that Parliament holds every two months with Commission representatives.
In addition, the IIA provides for interinstitutional meetings between Parliament, the Council and the
Commission on the implementation of the broader Next Generation EU (NGEU) recovery
instrument. These meetings are held in camera at least three times a year. Through the discharge
procedure, Parliament also ensures a democratic scrutiny of how NGEU resources are spent.

Milestones and targets

Disbursements under the RRF are
performance-based and will reflect Figure 3 – Indicative instalment schedule
progress on the implementation of the
milestones (qualitative goals) and
targets (quantitative goals). Overall, the
amended Dutch plan consists of
73 milestones and 59 targets. In total,
five instalments are planned, fewer than
typically envisaged in most NRRPs. The
first two instalments cover more than
half of the milestones, while the most of
the targets are linked to the last two.
The revised plan from November 2024
puts forward the milestone relating to
the environmental reform of car
taxation to the second instalment, while
it extends the implementation timeline Data source: Operational arrangements, 22 February 2024.
of the milestone relating to the entry
into force of the law aimed at increasing housing supply to the third instalment. Moreover, it lowers
the ambition of target 111 relating to the extension of intensive care beds from 54 to 52 hospitals,
as it is no longer achievable because of recent developments in the market relating to lower than
expected demand. Without lowering ambition, it implements better alternatives or reduces
administrative burden for several milestones and targets mostly by changing names and
descriptions of measures.
So far, the Netherlands has received one instalment. On 13 December 2024, the government
submitted the second payment request. For the second tranche of €1 185 million, the Netherlands
is expected to complete implementation of reforms targeting the green transition (energy tax
reform, reform of car taxation), the energy market (establishing priority framework for electricity
grid investments), addressing aggressive tax planning (by establishing a withholding tax), and the
housing market (phasing out the tax exemption for gifts to finance home, agreements and their
monitoring between provinces and municipalities on the realisation of 900 000 new dwellings, and
actions accelerating residential construction process and planning). Regarding investment, various
investment measures target skills improvement, addressing the excessive nitrogen repositories by
an aid scheme for the rehabilitation of pig farms, digitalisation and improvement of interoperability
of rail and road transport systems, extension of intensive care, and digitalisation of healthcare.

Views of Dutch stakeholders

The first draft of the Dutch NRRP, published on 28 March 2022 was consulted by several
stakeholders. This included meetings with municipalities, provinces, water boards (i.e. the
organisations responsible for water management in the Netherlands), social partners, and
organisations working to promote gender equality. In addition, an online public consultation was
carried out, with citizens being asked to give input on the plan's draft. This led to several

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amendments to the NRRP, such as the replacement of the 'stimulating hybrid heat pumps' measure
with the 'investment subsidy for sustainable energy and energy savings' one.
After the first draft of the plan was presented in March 2022, the Dutch municipalities indicated
they had different expectations regarding the consultation process. The Association of Dutch
Municipalities VNG declared several times it would like to enter into a partnership to draft the
recovery plan jointly, since according to them, Dutch local administrators know better than the
national government who needs heat pumps, for example.
Het Financieele Dagblad reported that, partly because of the fall of the Dutch government on 7 July
2023, the country was running into many delays in meeting different NRRP conditions and deadlines
and could lose part of its allocation.
The Dutch Ministry of Economic Affairs and Climate reports biannually on the implementation of the
NRRP to the Dutch parliament (De Tweede Kamer). In the most recent report issued on 26 April
2024, the Ministry informed that the implementation of the milestones and targets is generally going
well; however, there is a risk that some of them will be achieved with a delay or will not be achieved
at all. 2 The report points to the delays of targets and milestones concerning the adoption of a law
adjusting the structural elements of energy taxes, a law on money laundering that introduces a limit
on cash payments, the act strengthening public housing management, and a compulsory disability
insurance for the self-employed.
EUROPEAN PARLIAMENT SUPPORTING ANALYSIS
D'Alfonso, A. et al., Budgetary Outlook for the European Union 2024, EPRS, April 2024.
EPRS, EU recovery instrument, infographic, updated weekly.
EPRS, National Recovery and Resilience Plans: Latest state of play, blog, updated September 2024.

OTHER SOURCES
Dutch government, Europese afspraken over aanpak coronacrisis, website.
European Commission, Recovery and Resilience Scoreboard, website.

ENDNOTES
2

1
The graphics and tables in this briefing are based on data from the Commission assessment of the Netherlands'
amended NRRP, and the Council implementing decision (including its annex). Data used reflect their source at the
time of extraction; moreover, there may be discrepancies between data from different sources.
2
In a document issued in October 2023, the Ministry indicated that there are some delays in the implementation.

DISCLAIMER AND COPYRIGHT

This document is prepared for, and addressed to, the Members and staff of the European Parliament as
background material to assist them in their parliamentary work. The content of the document is the sole
responsibility of its author(s) and any opinions expressed herein should not be taken to represent an official
position of the Parliament.
Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged
and the European Parliament is given prior notice and sent a copy.
© European Union, 2024.
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[Link]/thinktank (internet)
[Link] (blog)
Third edition. The previous edition was drafted by Magdalena Sapała with Luca Schollaert. The 'NGEU delivery'
briefings are updated at key stages throughout the lifecycle of the plans.

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 The Netherlands' National Recovery and Resilience Plan

Annex – Payments received by the Netherlands so far

Under the operational arrangements agreed on 15 March 2024, the Netherlands will receive
€5 441.4 million from the Recovery and Resilience Facility. The amount will be disbursed in five
instalments based on the progress made in implementing the milestones and targets linked to each
instalment.
Table 4 provides an overview of the RRF payments the Netherlands has received so far.
The Netherlands made its first payment request on 24 May 2024. Three milestones linked to the
audit component had to be achieved before the Netherlands submitted the first payment request.
On 24 September 2024, the first instalment of €1 333 million was disbursed to the Netherlands
based on the satisfactory achievement of 25 milestones and five targets, including, among other
things, important reforms in areas such as the pension system, environmental taxation, the housing
market, self-employment, tax planning, and the electricity grid code. In addition, positively assessed
milestones and targets demonstrate progress in investment projects, including training and career
guidance for workers in the Dutch labour market, improvements in rail traffic management,
advancements in quantum technology research and development, provision of digital tools for
students, and e-health systems for home-based care.
Table 4 – Dutch NRRP: Payments as of December 2024
Payment Date Net Share of
resources total
(€ million)

Grants First instalment 24.9.2024 1 333 24.5 %

Total grants paid so far 1 333 24.5 %

Source: EPRS, based on European Commission data, 2024.

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