Digital investments of EU's recovery plan estimated to generate EUR 219.2 billion

The 2026 State of the Digital Decade Report published on 17 June, confirms digital transformation remains a core driver of Europe's competitiveness and strategic autonomy.

Since its first edition, the JRC has contributed to the report by mapping the EU funding allocated to reaching the Digital Decade targets. This year, JRC's analysis focuses on the Recovery and Resilience Facility (RRF), the EU's flagship post-COVID recovery instrument. For the first time the JRC, together with DGs ECFIN and CNECT, has also produced a comprehensive assessment of the overall economic impacts on the full RRF digital investment budget.

Data show that an estimated EUR 120.4 billion from the RRF contributes directly to the EU's Digital Decade targets. Despite an overall RRF budget reduction of 11.8% over the past year, the RFF remains the main source of funding for these targets, followed by the Cohesion policy fund. 23% of the RRF envelope is allocated to measures supporting the digital transition, with 21% allocated to Digital Decade targets. These figures are similar to previous years.

Digital RRF investment delivers above average economic returns

According to the study, the full implementation of digital investments under the RRF is estimated to generate EUR 219.2 billion in cumulative economic impact within the EU by 2030. This means that every euro spent of the RFF digital share generates €1.5 in EU-wide benefits. This effect is stronger than for non-digital measures under the RRF, largely because digital spending is heavily concentrated on high technology sectors where returns on investment are higher. The highest returns come from investments in digital skills and the digitalisation of public services, two key drivers of productivity and economic transformation.

Every EU country benefits, with significant cross-border spillovers

The study confirms that all EU countries benefit from digital RRF investments, with a total direct impact of EUR 168.3 billion and EUR 50.9 billion from spillover effects arising from the implementation of other Member States' plans.

Italy and Spain record the largest overall economic impact, driven primarily by the direct effects of their own recovery plans. Countries such as Germany, Denmark, Ireland, Luxembourg and the Netherlands benefit particularly strongly from cross-border spillovers, thanks to their deep integration in European supply chains and trade networks. The data demonstrates that EU-level coordination, channelled through a common instrument, helps to deliver significant economic returns.

Digital investment reaches every sector of the economy

At sectoral level, the largest gains are concentrated in capital-intensive and knowledge-intensive sectors. Within the EU, ICT services are estimated to benefit most from RRF digital investments mainly through the direct demand generated by the digitalisation of businesses and public institutions. But growth spreads well beyond the sectors that received direct funding. Manufacturing sees the largest overall gain (EUR 68.4 billion), followed by ICT services (EUR 52 billion), professional services (EUR 32.1 billion), trade (EUR 31.5 billion) and construction (EUR 30.9 billion). Sectors not directly funded by the digital RRF, like transport, real estate, and wholesale, also saw a positive impact, through supply-chains and the broader productivity gains that digitalisation generates across the economy.

Background

The Digital Decade Policy Programme 2030 provides the EU's framework for digital transformation, with targets across four dimensions: digital skills, digital infrastructure, business digitalisation and digital public services. The annual State of the Digital Decade Report monitors progress towards those targets and identifies where additional efforts are needed.

Since 2023, the JRC has supported the identification and tracking of EU funding contributing to Digital Decade targets, working in close collaboration with the Directorate-General for Communications Networks, Content and Technology.

Related links

• JRC Policy Brief: Economic Impacts of Digital Measures under the Recovery and Resilience Facility
• Support to Digital Decade shaping and monitoring
• Digital Measures under the Recovery and Resilience Facility: Economic Impacts at Macro, Sectoral and Country Levels - Discussion Paper

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