This document is an excerpt from the EUR-Lex website
It sets up the European Union Recovery Instrument NextGenerationEU to support the recovery from the COVID-19 crisis and sets out how it will operate.
NextGenerationEU is a temporary recovery instrument worth up to €750 billion in 2018 prices. It is at the heart of the European Union (EU) response to the COVID-19 crisis and aims to support the recovery and build a greener, more digital and more resilient future, in particular to reinvigorate potential for sustainable growth and employment in order to support EU Member States’ transition towards a green and digital economy.
The instrument will also help repair the immediate economic and social damage brought about by the COVID-19 crisis and build a post-COVID-19 Europe that is better equipped to deal with current and forthcoming challenges.
The centrepiece of NextGenerationEU is the allocation of financing to the Recovery and Resilience Facility — by offering grants and loans to support reforms and investments in the Member States with a total value of €672.5 billion in 2018 prices:
In addition, NextGenerationEU will reinforce several EU programmes as follows:
To finance NextGenerationEU, the Own Resources Decision (Decision (EU, Euratom) 2020/2053) (see summary) will enable the European Commission to borrow on the capital markets on behalf of the EU. As set out by the Own Resources Decision, repayment can take place over the long term, at the latest until 2058. This will avoid placing immediate pressure on Member States’ national finances and enable them to focus their efforts on the recovery.
The regulation does not apply to the United Kingdom.
The Commission shall submit a report to the Council by 31 October 2022 on how the funds allocated under this instrument are being used.
It has applied since 23 December 2020.
With their combined €1.8 trillion, NextGenerationEU, and the long-term EU budget 2021-2027, form the largest stimulus package ever financed through the EU budget.
The package will also help rebuild a post-COVID-19 Europe, which will be greener, more digital, more resilient and better equipped for the current and forthcoming challenges.
In addition to this Regulation, the package also includes:
Council Regulation (EU) 2020/2094 of 14 December 2020 establishing a European Union Recovery Instrument to support the recovery in the aftermath of the COVID-19 crisis (OJ L 433I, 22.12.2020, pp. 23-27)
Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources (OJ L 433I, 22.12.2020, pp. 28-46)
Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom (OJ L 424, 15.12.2020, pp. 1-10)
Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, pp. 1-222)
last update 20.05.2021