The Impact of the Recovery and Resilience Facility on National Social Policy: A Comparative Analysis of Southern Europe

The article examines the determinants of how member-states in Southern Europe leveraged RRF funding in the field of social policy. It does so by comparing three member-states, Greece, Portugal and Italy, that shared similar socio-economic challenges, such as high income inequality, and public debt. Yet, they included very different social policy objectives in their respective National Recovery and Resilience Plans. In Greece, key initiatives focus on strengthening healthcare, improving social safety nets, and reforming unemployment benefits and gender equality. Portugal’s plan emphasized enhancing healthcare infrastructure, expanding social housing, and increasing social protection programs. Italy’s recovery plan invests in education, healthcare, and social services to promote long-term social inclusion and well-being. The analysis seeks to explain this divergence in the allocation of funds by testing a plurality of potential explanations including the government’s political orientation, societal demands and EU pressure for reform via country specific recommendations. Overall, the article aims to contribute to the emerging literature on the implications of the RRF on social policy, while also making a wider contribution on the discussion of how governments shape their social policies under looser budget constraints.