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Proposal for an EU recovery plan – key features

Find out the key features of the European Council President negobox for the EU's long term budget 2021-2027 and recovery fund that will help Europe recover from the effects of COVID-19.

The European Council President has tabled a new proposal for EU leaders to discuss on 17-18 July 2020.

Overall architecture

€1 074 billion – Long-term EU budget (Multiannual Financial Framework)

€540 billion – COVID-19 safety nets already in place:

  • for workers
  • for businesses
  • for member states

€750 billion – Next Generation EU / Recovery Fund

Total: €2 364 billion

The EU's response: a comparison with the US and China

  • EU: 17% GNI (€2 364 billion)
  • US: 15.9% GNI ($3 061 billion)
  • China: 4.2% GNI (Y 4 200 billion)

Data sources: Bruegel, IMF, World Bank.

Measures taken by EU member states, the ECB and national central banks are not included.

Data for China may be incomplete.

Currency conversion: InforEuro.

Increasing investment in the climate and digital transitions

Climate mainstreaming: 30% target

  • all programmes contribute

Digital mainstreaming across programmes

  • Budget increases for:
    • Digital Europe programme
    • Connecting Europe Facility (digital strand)

Next Generation EU

  • Recovery and Resilience Facility: €560 billion
  • REACT-EU: €50 billion
  • Just Transition Fund: €30 billion
  • Solvency Support Instrument: €26 billion
  • Rural Development: €15 billion
  • RescEU: €2 billion
  • EU4Health: €7.7 billion
  • NDICI: €15.5 billion
  • Horizon Europe: €13.5 billion
  • InvestEU: €30.3 billion

Total: €750 billion

Recovery and Resilience Facility: allocation of grants

2021-2022: €217 billion

Allocation key:

  • unemployment 2015-2019
  • inverse GDP per capita
  • population share

2023: €93 billion

Allocation key:

  • overall drop in GDP in 2020 and 2021, observed in 2022
  • inverse GDP per capita
  • population share

Own resources

Four-phase approach:

  1. Plastic-waste based levy – 1 January 2021
  2. Carbon border and digital levy adjustment mechanism – by 1 January 2023
  3. Emission trading system (possible extension to aviation and maritime)
  4. Working on introducing other new own resources

Rebates

Lump sum rebates for:

  • Austria
  • Denmark
  • Germany
  • The Netherlands
  • Sweden

New special Brexit Adjustment Reserve

€5 billion to counter adverse consequences in member states and sectors that are worst affected by Brexit

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