EC unveils €750-billion recovery plan: Next Generation EU
The European Commission has adjusted its Work Programme for 2020 to propel Europe’s recovery and resilience. The priorities that were set at the beginning of the mandate and presented in January 2020 remain valid in addressing today’s challenges.
The Commission remains fully determined to deliver on its flagship initiatives, the European Green Deal and the Digital Strategy, as they are key to relaunching the European economy and building a more resilient, sustainable, fair and prosperous Europe.
To ensure the recovery is sustainable, even, inclusive and fair for all Member States, the European Commission is proposing to create a new recovery instrument, Next Generation EU. Next Generation EU of €750 billion as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the total financial firepower of the EU budget to €1.85 trillion.
The money raised for Next Generation EU will be invested across three pillars:
Pillar 1- Support to Member States with investments and reforms:
A new Recovery and Resilience Facility of €560 billion will offer financial support for investments and reforms, including in relation to the green and digital transitions and the resilience of national economies, linking these to the EU priorities
€15 billion reinforcement for the European Agricultural Fund for Rural Development to support rural areas in making the structural changes necessary in line with the European Green Deal and achieving the ambitious targets in line with the new biodiversity and Farm to Fork strategies.
A proposal to strengthen the Just Transition Fund up to €40 billion, to assist Member States in accelerating the transition towards climate neutrality.
Pillar 2. Kick-starting the EU economy by incentivising private investments:
Highlight: A new Solvency Support Instrument will mobilise private resources to urgently support viable European companies in the sectors, regions and countries most affected.
Pillar 3. Addressing the lessons of the crisis:
Highlight: An amount of EUR €94.4 billion for Horizon Europe, which will be reinforced to fund vital research in health, resilience and the green and digital transitions.
Reaching a rapid political agreement on Next Generation EU and the overall EU budget for 2021-2027 at the level of the European Council by July is necessary to give new dynamism to the recovery and equip the EU with a powerful tool to get the economy back on its feet and build for the future.
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To learn more about Water Europe’s stance on a European recovery plan, make sure to read our position paper ‘A Water-Smart Society for a Successful post #COVID19 recovery plan‘.