Next Generation EU

On 27 May the European Commission presented a €750 billion recovery plan with a revised seven-year budget proposal totalling €1.1 trillion for the years 2021 to 2027.

The plan, entitled Next Generation EU, would provide €500 billion in grants to countries hit hardest by the pandemic, and make another €250 billion available as loans. The Commission intends to temporarily lift the “own resources restriction” to allow it to borrow money on the financial markets to create the recovery instrument. This additional funding will be channelled through EU programmes and repaid over a period of time through future budgets. Other options include raising money by way of a digital tax, a carbon border adjustment tax or an emissions-trading system.

The money raised for Next Generation EU will be used to support Member States with investments and reforms; kick-start the EU economy by incentivising private investments; and address the lessons of the crisis. There is an emphasis on the green and digital transition with the European Green Deal as an instrument of recovery including a massive renovation wave of buildings and infrastructure and the installation of one million charging points for electric vehicles. Tourism, construction and transport are among the sectors expected to be hit the worst by the coronavirus crisis according to information published by the Commission together with the recovery plan.

The proposal now must be approved by all EU Member States. More information is available at