After 90 hours of debate, the European Council approves Next Generation EU. This new recovery plan will be endowed with 750 billion euros, divided into 390 billion in non-refundable funds and another 360 billion in loans.
In order to address the economic crisis resulting from Covid 19 in a fair, equitable, and environmentally conscious manner, the European Commission will support national efforts, with a greater focus on the most affected countries through Next Generation EU. The recovery plan will raise funds by temporarily raising the own resources ceiling to 2% of the EU’s gross national income, allowing it to borrow this 750 billion euro on the financial markets.
The Recovery and Resilience Mechanism will have 672.5 billion, 312.5 billion in transfers. The Next Generation EU programme will focus on areas such as the ecological transition, digital transformation, education and improved social protection.
React-EU will have 47.5 billion euros, the remaining amount would come from the rest of the NGEU funding tools:
The Next Generation EU Fund would be distributed as follows:
The Recovery and Resilience Fund is included in the NextGenerationEU framework. The aim of the €672.5 billion fund is to support public investments, especially in digitalisation and in the quest for a greener Europe, while making national economies more resilient and better prepared for the future.
A few days ago, the President of the European Commission, German Ursula von der Leyen, announced that 37% of this fund will go directly to the Green Deal objectives. In addition, another 20% of the budget is to be earmarked for digitalisation projects. She also announced that 30% of the Next Generation EU 750 billion will be raised through green bonds.
FI Group has 20 years of experience and wants to accompany you on the new NextGenerationEU path. Our experts are at your disposal to analyse how your project fits into the NextGenerationEU European recovery fund and to take the next steps together with you. Contact us.
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