The coronavirus pandemic has been a defining moment for the EU. Instead of turning inwards during this time of crisis, EU Member States demonstrated the strength of the union in deciding to tackle the challenges posed by the pandemic together.
Covid-19 triggered a global recession. Businesses were forced to close their doors and millions of people found themselves out of work. The EU has created a €806.9 billion recovery package called Next Generation EU (“NGEU”). NGEU will provide €390 billion in grants and €360 billion in loans in order to mitigate the immediate economic effects of the coronavirus pandemic.
In order to finance this recovery plan, the Commission set out a plan to raise mutualised debt. This was a historic move showing unprecedented European solidarity.
NGEU is just one part of the plan to combat the economic damage of the coronavirus pandemic. Combined with the long-term budget for 2021-2027, known as the Multiannual Financial Framework (“MFF”) the recovery package as a whole is worth €2.018 trillion.
This is an opportunity to further our goals of a green and digital future in the EU. 30% of the funds under these budgets will target climate change and Horizon Europe (the EU’s programme for research and innovation) will receive €95.5 billion.
For more information on the EU’s plans for the economic recovery from the Covid-19 pandemic, please click here.