Recovery plan

What it means

The Recovery and Resilience Plan is the programme through which Slovakia draws money from the EU Recovery and Resilience Facility created after the pandemic. It funds reforms and investment in areas such as green energy, digitalisation, healthcare, education and public administration.

It differs from traditional EU funds in that the European Commission does not reimburse expenditure but pays the state for milestones and targets achieved, such as a law passed or a number of buildings renovated. The state then passes the money to final recipients through calls.

Drawing on the funds is strictly time-limited, and projects must be completed before the facility ends. All investments must respect the do no significant harm principle, which builds on the EU taxonomy.

How it works in practice

Companies mostly access Recovery Plan money through calls for energy savings, innovation or digitalisation. Before an application we check whether the company is an SME, whether it meets the state aid conditions and whether it has any arrears with the state.

Once a project is approved, we set up the books so that project costs can be separated: dedicated analytical accounts or a cost centre, proper procurement of suppliers and archiving of documents. We recognise the grant in income gradually, in line with the depreciation of the assets it funded.

Projects usually include measurable indicators, such as energy savings. We help clients prepare data for monitoring reports and keep an eye on deadlines, because under the Recovery Plan dates can hardly be moved.

What to watch out for

In calls with a fixed completion date there is a risk that a delivery or construction will not be finished in time. An unfinished project may mean repaying money already received. Before a contract is signed we therefore go through the schedule and contingencies realistically with the client.

Audits can take place years after a project ends. Documents, procurement files and evidence that results are sustained must be archived for the whole period set in the contract, otherwise a financial correction may follow even for a properly executed project.