| Author (Corporate) | Council of the European Union |
|---|---|
| Series Title | Official Journal of the European Union |
| Series Details | L 433I, Pages 23-27 |
| Publication Date | 22/12/2020 |
| Content Type | Blog & Commentary, Legislation, News, Policy-making |
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Summary: Regulation (EU) 2020/2094 - adopted by the Council of the European Union on 14 December 2020 - establishing a European Union Recovery Instrument - also known as NextGenerationEU - to support recovery across the European Union (EU) in the aftermath of the COVID-19 (coronavirus) pandemic. Further information: The pandemic has not only been a sanitary emergency but also carried a strong socioeconomic impact across the EU. Member States adopted measures to support workers and enterprises, but not all could do this to the same extent. While every country was affected by the virus, it became apparent there would be a risk of an imbalanced recovery, an uneven playing field and widening disparities across the European Union. A comprehensive plan for recovery requires considerable amounts of public and private investment at EU-level. The Next Generation EU is a funding package amounting to €750 billion (2018 prices), which complements the revised Multiannual Financial Framework (MFF) for 2021-2027. This Regulation establishes the funding instrument and determines the allocation of funds to different EU programmes in line with the strategy set out in the Recovery Plan for Europe. It instrument comprises:
In order to provide the financing of NextGenerationEU, the Own Resources Decision (ORD) was amended to authorise the European Commission (on behalf of the EU) to borrow an amount of €750 billion. The draft law for this Regulation was tabled by the European Commission on 27 May 2020. A political agreement between national leaders on the terms of the Recovery Plan was reached at a European Council meeting in July 2020. Negotiations between the Council of the European Union and the European Parliament on these matters were concluded successfully on 10 November. The Act was adopted by the Council of the European Union on 14 December 2020 and published in the Official Journal on 22 December. In April 2021, the Commission published a Communication setting out its funding strategy to finance this recovery instrument. |
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| Subject Categories | Economic and Financial Affairs |
| Subject Tags | Economic Governance | Situation, EU Budget |
| Keywords | COVID-19 (Coronavirus) |
| International Organisations | European Union [EU] |
