Next Generation EU

<p>Next Generation EU (NGEU) is a <a href="/facts/European_Commission/Cc5JgbEI">European Commission</a> <a href="/facts/Economic_recovery/43ewP56h">economic recovery</a> package to support the EU member states to recover from the <a href="/facts/COVID-19_pandemic/0xTsh7Ut">COVID-19 pandemic</a>, in particular those that have been particularly hard hit. It is sometimes styled NextGenerationEU and Next Gen EU, and also called the European Union Recovery Instrument. Agreed in principle by the <a href="/facts/European_Council/QLJLlbkt">European Council</a> on 21 July 2020 and adopted on 14 December 2020, the instrument is worth <a href="/facts/Euro/NWG2nlCx">€</a>750 billion roughly equally split between grants and loans. NGEU will operate from 2021 to 2026, and will be tied to the regular <a href="/facts/Multiannual_Financial_Framework/kXEn7lvl">2021–2027 budget of the EU's Multiannual Financial Framework</a> (MFF). Money borrowed by the EU to fund the grants will be repaid using <a href="/facts/EU%27s_own_resources/UCH2G5Q9">EU's own resources</a> until 2058. The comprehensive NGEU and MFF packages are projected to reach €1824.3 billion, so NGEU effectively doubles the EU budget while operational. It is a revolutionary EU instrument in many aspects: size (the largest EU fund so far), leverage of the grants for reforms, and novel methods of financing and grant allocation.
</p><p>The program is very large (just the grant portion of NGEU is twice the amount the <a href="/facts/Marshall_plan/tzYxovlM">Marshall plan</a> aid) and redistributive (NGEU favors the south of the block: <a href="/facts/Italy/tUf0PDYF">Italy</a> and <a href="/facts/Spain/bIyrB8EY">Spain</a> get the largest shares, while <a href="/facts/Greece/lqHw8bTB">Greece</a> is the leader in per-capita allocations, at almost 20% of its GDP). The grant portion of NGEU is approximately 3% of EU's GDP. Similar to the Marshall plan, NGEU is conditional, however it targets investment and public services, not stabilizing the budgets and promoting trade. 37% of the funds are intended for the <a href="/facts/Green_transition/KkjfUN7L">green transition</a> and additional 20% for <a href="/facts/Digital_economy/UdxKkyqI">digital economy</a>.
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Next Generation EU open-in-new

Next Generation EU