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Recovery plan for Europe (NextGenerationEU)

Target group
SMEs, Large Enterprises, Government, Cities, Communities & NGOs, Knowledge Centers
Type of funding
Grant, Lump Sum, Loans & Investments, Equity financing, Guarantees, Procurement, Networking, No direct funding
Project type
Research, Innovation, Growth, Start, Infrastructure, Networking, Dissemination
Agriculture and forestry, Bio-based Industries, Biotechnology, Energy, Environment & Climate Action, Food & Healthy Diet, Funding Researchers, Health, ICT Research & Innovation, Innovation, International Cooperation, Key Enabling Technologies, Oceans and seas, Partnerships with Industry & MS, Plastics, Raw Materials, Research Infrastructures, Security, SMEs, Social Sciences and Humanities, Society, Space, The European Research Area (ERA), Transport, Manufacturing, Culture & Creativity
Info last updated 10 months ago


This is NextGenerationEU. This is more than a recovery plan. It is a once in a lifetime chance to emerge stronger from the pandemic, transform our economies, create opportunities and jobs for the Europe where we want to live.


€806.9 billion

Official information source





This is NextGenerationEU. This is more than a recovery plan. It is a once in a lifetime chance to emerge stronger from the pandemic, transform our economies, create opportunities and jobs for the Europe where we want to live. We have everything to make this happen.


We have the vision, we have the plan, and we have agreed to invest together €806.9 billion*. 


It is now time to get to work, to make Europe greener, more digital and more resilient.


*This figure is in current prices. It amounts to €750 billion in 2018 prices.


The largest stimulus package ever

The EU’s long-term budget, coupled with NextGenerationEU (NGEU), the temporary instrument designed to boost the recovery, will be the largest stimulus package ever financed in Europe. A total of €2.018 trillion in current prices* will help rebuild a post-COVID-19 Europe. It will be a greener, more digital and more resilient Europe.

The new long-term budget will increase flexibility mechanisms to guarantee it has the capacity to address unforeseen needs. It is a budget fit not only for today's realities but also for tomorrow's uncertainties.

The last step of the adoption of the next long-term EU budget was reached on 17 December 2020.

*€1.8 trillion in 2018 prices

Facts and figures of MFF 2021-2027 and NextGenerationEU


Main elements of the agreement

More than 50% of the amount will support modernisation, for example through:

 research and innovation, via Horizon Europe
 fair climate and digital transitions, via the Just Transition Fund and the Digital Europe Programme
 preparedness, recovery and resilience, via the Recovery and Resilience Facility, rescEU and a new health programme, EU4Health

In addition, the package pays attention to

 modernising traditional policies such as cohesion and the common agricultural policy, to maximise their contribution to the Union's priorities
 fighting climate change, with 30% of the EU funds, the highest share ever of the European budget
 biodiversity protection and gender equality

Key novelties


Multiannual Financial Framework 2021-2027 and NextGenerationEU total allocations per heading


1. Single market, innovation and digital€149.5 billion€11.5 billion
2. Cohesion, resilience and values€426.7 billion€776.5 billion
3. Natural resources and environment€401 billion€18.9 billion
4. Migration and border management€25.7 billion-
5. Security and defence€14.9 billion-
6. Neighbourhood and the world€110.6 billion-
7. European public administration€82.5 billion-
TOTAL MFF€1 210.9 billion€806.9 billion

All amounts in € in current prices. Source: European Commission



 NextGenerationEU is a more than €800 billion temporary recovery instrument to help repair the immediate economic and social damage brought about by the coronavirus pandemic. Post-COVID-19 Europe will be greener, more digital, more resilient and better fit for the current and forthcoming challenges.
  • The Recovery and Resilience Facility: the centrepiece of NextGenerationEU with €723.8 billion in loans and grants available to support reforms and investments undertaken by EU countries. The aim is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions. Member States are working on their recovery and resilience plans to access the funds under the Recovery and Resilience Facility.
  • Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU): NextGenerationEU also includes €50.6 billion for REACT-EU. It is a new initiative that continues and extends the crisis response and crisis repair measures delivered through the Coronavirus Response Investment Initiative and the Coronavirus Response Investment Initiative Plus. It will contribute to a green, digital and resilient recovery of the economy. The funds will be made available to
    - the European Regional Development Fund (ERDF)
    - the European Social Fund (ESF)
    - the European Fund for Aid to the Most Deprived (FEAD)
    These additional funds will be provided in 2021-2022.
  • NextGenerationEU will also bring additional money to other European programmes or funds such as Horizon2020, InvestEU, rural development or the Just Transition Fund (JTF).


NextGenerationEU breakdown

Recovery and Resilience Facility (RRF)€723.8 billion
of which, loans385.8 billion
of which, grants338.0 billion
ReactEU€50.6 billion
Horizon Europe€5.4 billion
InvestEU€6.1 billion
Rural Development€8.1 billion
Just Transition Funds (JTF)€10.9 billion
RescEU€2 billion
TOTAL€806.9 billion

All amounts in €, in current prices. Source: European Commission



NextGenerationEU figures per EU country


MFF figures per EU country


Financing the EU long-term budget and NextGenerationEU


The EU long-term budget will continue to be financed through the well-known revenue sources of the EU budget:

  • customs duties
  • contributions from the Member States based on value added tax (VAT)
  • contributions based on gross national income (GNI)

In addition, as of 1 January 2021, a new national contribution based on non-recycled plastic packaging waste will be introduced as a source of revenue of the EU budget.


Borrowing to finance the recovery

To finance NextGenerationEU, the European Commission - on behalf of the European Union – will borrow on the markets at more favourable rates than many Member States and redistribute the amounts.

The European Commission already issues bonds to finance loans to EU and third countries under four programmes, including up to €100 billion for the SURE programme to support jobs and keep people in work.

To raise up to around €800 billion in current prices until 2026 for NextGenerationEU under the best financial terms – 5% of EU GDP – the Commission will use a diversified funding strategy.


A clear roadmap towards new sources of revenue to help repay the borrowing

In December 2021, the Commission proposed three new sources of revenue to the EU budget, to help repay the grants part of NextGenerationEU and contribute to the financing of the Social Climate Fund, aimed to make sure the transition to a decarbonised economy leaves no one behind.

 Emissions Trading System own resource
 Carbon border adjustment mechanism own resource
 Own resource based on the reallocated profits of very large multinational companies

The Commission will now work with the European Parliament and with the EU Member States in the Council towards a swift approval of the new sources of revenue.

The Commission will propose additional new own resources by the end of 2023.

Sources of revenue for the 2021-2027 EU budget

The next generation of EU own resources


Next steps

The European Commission has started committing the funds under the next Multiannual Financial Framework (the EU long-term budget) as of 1 January 2021, following the adoption of the relevant sector-specific rules as well as of the annual budget for 2021 by the European Parliament and the Council.

On 31 May 2021, the Own Resources Decision has been ratified by all Member States in line with their constitutional requirements. The Commission can now finance the recovery under NextGenerationEU. On 15 June 2021, the Commission raised €20 billion in its first NextGenerationEU transaction.


The beneficiaries

Anyone can benefit from the EU budget. Find open and upcoming calls for funding proposals, get background information on funding processes and programmes, and apply online.

Learn about the tendering process and opportunities for doing business with the European Commission.



The Commission put forward its proposal for the EU’s next long-term budget on 2 May 2018. The framework proposal was immediately followed by legislative proposals for the 37 sectoral programmes (e.g. cohesion, agriculture, Erasmus, Horizon Europe, etc). Between 2018 and the beginning of 2020, the Commission worked hand in hand with the rotating Presidencies of the Council, and in close collaboration with the European Parliament, to take the negotiations forward.

On 27 May 2020, in response to the unprecedented crisis caused by the coronavirus, the European Commission proposed the temporary recovery instrument NextGenerationEU, as well as targeted reinforcements to the long-term EU budget for 2021-2027.

On 21 July 2020, EU heads of state or government reached a political agreement on the package.

On 10 November 2020, the European Parliament and the Council reached an agreement on the package.

On 10 December 2020, EU Member States in the European Council agreed to finalise the adoption of the MFF Regulation and the Own Resources Decision, at the level of the Council.

On 17 December 2020, the Council decided to adopt the next long-term EU budget for the period 2021-2027. This was the final step in the adoption process following the vote in the European Parliament on 16 December, which endorsed the MFF Regulation with a significant majority.

On 18 December 2020, the European Parliament and the Council reached an agreement on the Recovery and Resilience Facility, the key instrument at the heart of NextGenerationEU.

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