Members' Research Service By / July 31, 2025

Smart and sustainable transport investments in the national recovery and resilience plans

The Recovery and Resilience Facility (RRF), the main investment tool under the Next Generation EU (NGEU) recovery instrument, has a total financial envelope of €650 billion (comprising €359 billion in grants and €291 billion in loans).

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Written by Bozena Destin Bobkova.

Smart and sustainable transport plays a significant role in advancing the EU’s green and digital transitions under the Recovery and Resilience Facility (RRF), the crisis-response instrument the EU launched to boost EU economic recovery in the wake of the COVID-19 pandemic. All EU Member States included transport-related measures in their national recovery and resilience plans. Member States are collectively investing almost €83 billion in smart and sustainable transport, amounting to 12.8  % of the total RRF envelope, underscoring the sector’s strategic importance for decarbonisation, digitalisation, connectivity and economic growth.

The largest contributions to smart and sustainable transport come from Italy (€34.0 billion), Spain (€9. 9 billion) and Germany (€7.6 billion), together accounting for over 60  % of total smart and sustainable transport-related RRF investment. By contrast, several smaller Member States stand out in relative terms: Luxembourg allocates 47.2  % of its national plan to transport investments (€223.2 million), while Malta devotes 30.5  % (€100.2 million).

Rail transport receives the largest share of funding, amounting to nearly €48.9 billion, or 59  % of total transport-related RRF investments. More than €34.4 billion of this supports the trans-European transport (TEN-T) network and the roll-out of the European Rail Traffic Management System, exceeding the entire Connecting Europe Facility transport budget for 2021–2027. These investments are expected to enhance cross-connectivity, border interoperability, improve rail safety and efficiency, and facilitate modal shift from road to rail.Beyond rail, Member States are investing in a broad mix of measures, including urban transport, alternative fuels infrastructure, support for zero- and low-emission vehicles and cycling.


Read the complete briefing on ‘Smart and sustainable transport investments in the national recovery and resilience plans‘ in the Think Tank pages of the European Parliament.


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