The European Commission has proposed a new economic recovery instrument called “Next Generation EU” aimed at building a lasting and prosperous recovery after COVID-19. It will amount to €750 billion which will be borrowed from financial markets and channeled to provide additional funding to cohesion programmes, support investments in Member States, and strengthen the EU’s health security. Namely,
- A new Recovery and Resilience Facility of €560 billion will offer financial support for investments and reforms;
- A new REACT-EU initiative under which €55 billion will be added to the current cohesion policy programmes between now and 2022;
- A €15 billion reinforcement for the European Agricultural Fund for Rural Development to support rural areas;
- A new Solvency Support Instrument will stimulate private investment in European companies in the sectors, regions and countries most affected.
- A new Health Programme, EU4Health, to strengthen health security and prepare for future health crises with a budget of €9.4 billion.
- A €2 billion reinforcement of rescEU, the Union’s Civil Protection Mechanis;
- A €94.4 billion reinforcement of Horizon Europe to fund vital research in health, resilience and the green and digital transitions
The Commission has also proposed to make an additional €11.5 billion in funding available already in 2020 to respond to the most pressing needs caused by the pandemic.
For more information, please visit the Commission’s website.