On May 27, the European Commission put forward a proposal for a major recovery plan for the European Union and its Member States.
Taking into consideration the extraordinary circumstances the world has faced since the COVID-19 outbreak, the European Commission proposed that a new recovery instrument, ‘Next Generation EU’, is created to ensure recovery is sustainable, even and inclusive for all Member States. The European Commission is proposing that the Next Generation EU budget of €750 billion is coupled with targeted reinforcements to the next EU long-term budget 2021-2027. In total, if approved, the new EU budget will add up to €1.85 trillion.
Funds raised for Next Generation EU will be invested in three main pillars:
- Support to Member States with investments and reforms;
- Kick-starting the EU economy by incentivising private investments;
- Addressing the lessons of the current COVID-19 crisis.
The EU Commission has stressed the importance of the European Parliament and the EU Council to reach political agreement on both the Next Generation EU recovery instrument and the overall EU budget for 2021-2027 to get both the economy and citizens’ livelihoods back on track as soon as possible.
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