The COVID-19 pandemic has tested our societies and economies in unprecedented ways. In addition to Next Generation EU, the Commission is proposing a revamped EU budget, amounting to some €1 100 billion between 2021-2027. Significant because the effects of the crisis are far-reaching. The Next Generation EU (NGEU) recovery response to the Covid-19 crisis, one of the most ambitious EU integration projects so far, risks foundering over differences of procedure that ought to guarantee the link between observing the rule of law and disbursing EU funds. The funding raised for Next Generation EU, in total €750 billion, will be invested across three pillars. The programme is designed to make a significant contribution to the post-COVID-19 recovery, with a focus on strengthening the resilience of health systems, and promoting innovation in the health sector. The headquarters of the Council of the EU and the European Council are located in Brussels (Belgium). Infographic - Recovery and Resilience Facility. They stressed the need for coordination between member states before establishing temporary control measures at the internal borders within the EU. The "Next Generation EU" package, running to €750 billion, will be used for investing in a green, digital and resilient EU. Source: European Commission. The regulation provides for a long-term budget of €1 074.3 billion for the EU27 in 2018 prices, including the integration of the European Development Fund. The public health emergency rapidly turned into the most drastic economic crisis in the EU's history. Member states' ambassadors to the EU agreed the Council's position on the Capital Markets Recovery Package. The EU institutions can now finalise the procedures for the adoption of the multiannual financial framework for 2021-2027 and the recovery package. SUMMARY . The German Presidency of the Council and the European Parliament reached a political agreement on REACT-EU, an emergency legislative initiative to release €47.5 billion through the structural funds to the member states and regions hardest hit by the COVID-19 pandemic. Together with the Next Generation EU recovery instrument of €750 billion, it will allow the EU to provide an unprecedented €1.8 trillion of funding over the coming years to support recovery from the COVID-19 pandemic and the EU's long-term priorities across different policy areas. For the Commission to start borrowing, all Member  States must ratify the new Own Resources Decision in line with their constitutional requirements. It was clear that the recovery would require a joint effort at EU level: EU leaders decided to work towards establishing a recovery fund. As a comparison, the European "Green Deal", which was presented in November 2019 and was to extend over a decade, was a €1,000 billion package. It was stressed that a well-functioning Single Market and fair competition are the main preconditions for Europe to come out stronger and more resilient from the COVID-19 crisis. Ministers reached a political agreement on the Recovery and Resilience Facility, the main instrument of the €750 billion recovery package negotiated by EU leaders at their meeting on 17-21 July. In parallel, the Council would analyse and assess the proposal. It consists of the heads of state or government of the member states, together with its President and the President of the Commission. NEXT GENERATION EU A1. The deal will be submitted to member states for endorsement together with the other elements of the next multiannual financial framework and recovery package. This assessment should be included a report to be presented by 15 January 2021. Together with the €540 billion of funds already in place for the emergency safety nets (for workers, for businesses and for member states), the overall EU's firepower to support the recovery amounts to €2 364.3 billion. To finance the recovery, the EU will borrow on the markets at more favourable rates than many Member States and redistribute the amounts. The new Recovery and Resilience Facility (RRF) represents the bulk of the Next Generation EU effort: close to 90% of the total envelope. The money for Next Generation EU will be raised through the temporary lift of the own resources ceiling to 2% of EU Gross National Income. With the regard to the recovery plan, the package agreed with the Parliament foresees greater involvement of the budgetary authority in the oversight of revenue under Next Generation EU. On 9 April 2020, the Eurogroup put forward a €540 billion emergency support package for jobs and workers, businesses and member states. NGEU will be channelled through seven programmes in the form of loans (€360 billion) and grants (€390 billion): Legal commitments will be made by 31 December 2023. but commonly referred to as the Recovery Plan. The recovery effort (...) is significant, focused and limited in time. The press office holds press events, offers audiovisual coverage of major events and provides facilities for journalists. Next Generation EU – COVID-19 recovery package. Also known informally as the EU Council, it is where national ministers from each EU country meet to adopt laws and coordinate policies. We want to build a modern, clean and healthy economy, which will help to secure the livelihoods of the next generations. Ministers  stressed that the COVID-19 pandemic has revealed the importance of research and innovation in the fight against the current health and economic crisis, as well as its potential to prevent vulnerabilities in future crises. During the video conference of the members of the European Council, EU leaders decided to work towards establishing a recovery fund. If you don’t see the video correctly, use Chrome, it’s an HTML5 broadcast. The goals of our recovery can be summarised in three words: first convergence, second resilience and transformation. This will allow the Commission to use its strong credit rating to borrow €750 billion on the financial markets. I welcome the readiness to engage. Because of hurdles in designing, approving and implementing European Union programmes, less than a quarter of the €438 billion in grants planned under the new EU recovery instruments is expected to be spent in the next two and a half years, when recovery needs will be greatest. This additional funding, which is part of the EU's recovery effort, Next Generation EU (NGEU), will be available over two years: REACT-EU, which stands for Recovery Assistance for Cohesion and the Territories of Europe, is intended primarily to support health services, jobs and small and medium-sized enterprises while stimulating the twin green and digital transitions. The Eurogroup will continue to lead the euro area economy towards an inclusive recovery that benefits all citizens and to work on the strengthening of the Economic and Monetary Union. The Council of the EU meets in different configurations depending on the topic discussed. The Recovery and Resilience Facility and ReactEU will be entirely funded by Next Generation EU. EU expenditure for 2021-2027. Next Generation EU will give the EU budget the additional firepower necessary to respond decisively to the most urgent challenges. Research and innovation spearhead efforts towards economic recovery from the COVID-19 crisis. In 2021, contributions from “Next Generation EU” are planned to provide an additional EUR 211.3 billion of assigned revenue. During the informal video conference, ministers held a policy debate on how the Recovery and Resilience Facility (RRF) can contribute to the further development of the European Research Area (ERA). European Council President Charles Michel presented his new proposal for the long-term EU budget and the recovery package, the so-called negobox. Together with the amounts under the EU long-term budget, these funds should help advance objectives such as: The Council adopted conclusions on the role of a deepened and fully functioning single market for a strong economic recovery and a competitive and sustainable European Union. The concentration of cuts on centralised programmes has allowed … Ministers underlined the importance of ensuring the free flow of goods and services for the smooth functioning of the Single Market. Read more about the role of the European Council, EU recovery package: Council adopts Recovery and Resilience Facility (press release, 11 February 2021), COVID-19: the EU's response to the economic fallout (background information), Recovery plan for Europe (European Commission), Special European Council, 17-21 July 2020, EU long-term budget for 2021-2027 (background information), Informal video conference of research ministers, 26 February 2021, Informal video conference of internal market and industry ministers, 25 February 2021, Recovery and Resilience Facility: Council presidency and Parliament reach provisional agreement (press release, 18 December 2020), Multiannual financial framework for 2021-2027 adopted (press release, 17 December 2020), Council approves conclusions on making the recovery circular and green (press release, 17 December 2020), Next multiannual financial framework and recovery package: Council moves to finalise adoption (press release, 14 December 2020), Presidency and Parliament reach political agreement on REACT-EU (press release 18 November 2020), MFF and recovery package: Council presidency reaches political agreement with the European Parliament (press release, 10 November 2020), Capital Markets Recovery Package: Council agrees its position (press release, 21 October 2020), Council agrees position on the Recovery and Resilience Facility (press release, 9 October 2020), Video conference of economics and finance ministers, 6 October 2020, Video conference of the Eurogroup, 5 October 2020, Council sets priorities for future Single Market policy in the post COVID-19 era (press release, 21 September 2020), European industrial strategy (European Commission), President Charles Michel presents his proposal for the MFF and the recovery package, 10 July 2020, Video conference of environment ministers, 23 June 2020, Video conference of the members of the European Council, 19 June 2020, Long-term EU budget 2021-2027 (background information), Video conference of ministers of health, 12 June 2020, Video conference of economics and finance ministers, 9 June 2020, European Semester (background information), Charles Michel on the recovery fund and EU budget (press release, 27 May 2020), Conclusions of the President of the European Council following the video conference of the members of the European Council, 23 April 2020, Invitation letter by President Charles Michel to the members of the European Council ahead of their video conference on 23 April 2020, A joint roadmap for recovery, 21 April 2020, smart, sustainable and inclusive growth and jobs, policies for the next generation, including education and skills, Recovery and Resilience Facility: €672.5 billion, general eligibility rules for the national recovery and resilience plans, the assessment criteria used by the Commission, help EU companies raise capital on public markets, fostering the European development of the, making use of digital technologies to reach the ambitious. Recovery and Resilience Facility: €672.5 billion … The EU long-term budget will continue to be financed through the well-known revenue sources of the EU budget: In addition, as of 1 January 2021, a new national contribution based on non-recycled plastic packaging waste will be introduced as a source of revenue of the EU budget. Spain expects to receive €140 billion, €72 billion of which are non-repayable, from Next Generation EU, a recovery plan endowed with €750 billion approved by the European Council in the peak of the ‌Covid-19 pandemic.‌ ‌In‌ ‌this‌ ‌article‌ ‌we‌ outline how these funds will be structured. They can not only spur economic activity but also accelerate the green and digital transitions and strengthen the resilience of our economy. From the early days of the pandemic, the EU took action to tackle the crisis. The multiannual financial framework, reinforced by the Next Generation EU, will be the main instrument for implementing the recovery package to tackle the socio-economic consequences of the COVID-19 pandemic. Next Generation EU will raise money by temporarily lifting the maximum amount that the EU can request from Member States to cover its financial obligations to 2.0% of EU Gross National Income. The funds raised will need to be repaid through future EU budgets - not before 2028 and not after 2058. Related payments will be made by 31 December 2026. In order to receive support from the Recovery and Resilience Facility, EU countries plans are asked to set out a coherent package of projects, reforms and investments in six policy areas: EU countries have until 30 April 2021, as a rule, to submit their national recovery and resilience plans setting out their reform and investment agendas until 2026. Next Generation EU is intended to finance the national recovery plans implemented by the 27 EU Member States to face the pandemic crisis. This proposal will serve as a basis for the leaders’ discussions at the Special European Council on 17-18 July 2020.