|Author (Corporate)||European Commission: Secretariat General|
|Series Details||COM (2020) 441|
Initiative put forward by the European Commission on 27 May 2020, aimed at establishing a European Union Recovery Instrument - also known as Next Generation EU.
The COVID-19 (coronavirus) pandemic was not only a sanitary emergency but also had a strong socioeconomic impact across the European Union (EU). In response, Member States adopted a series of measures to support workers and companies facing the consequences of the outbreak. While the virus affected all Member States, the impact and the potential for recovery looks very different. While every Member State was able to support its workers and companies as much as possible, not all could do this to the same extent. This has created the risk of an imbalanced recovery, an uneven playing field and widening disparities across the EU.
A comprehensive plan for European recovery requires considerable amounts of public and private investment at European level. To provide the financing for the proposed Instrument, the Commission proposes an amendment to the Own Resources Decision (ORD) which would authorise the EU to borrow temporarily and exceptionally an amount of €750 billion, the increase the own resources ceiling to accommodate the liabilities and contingent liabilities for loans to the Member States. This proposal determines the allocation of funds to different EU programmes in line with the strategy set out in the European Recovery Plan.
The proposed EU Recovery Instrument was put forward in the framework of a revamped package of proposals for the Multiannual Financial Framework (MFF) 2021-2027 in light of the challenges imposed by the pandemic.
Related sectoral legislative initiatives:
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||EU Budget, Multiannual Financial Framework [MFF]|
|International Organisations||European Union [EU]|