On May 27, the European Commission put forward its proposal for a major recovery plan. The European Commission is proposing to create a new recovery instrument, Next Generation EU, embedded within a powerful, modern, and revamped long-term EU budget.

The Commission is proposing to harness the full potential of the EU budget, combining Next Generation EU (€750 billion) and targeted reinforcements to the long-term EU budget for 2021–2027, to create €1.85 trillion. The Commission has also unveiled its adjusted Work Programme for 2020, which will prioritise the actions needed to propel Europe’s recovery and resilience.

European Commission President Ursula von der Leyen said: “The recovery plan turns the immense challenge we face into an opportunity, not only by supporting the recovery but also by investing in our future: the European Green Deal and digitalization will boost jobs and growth, the resilience of our societies and the health of our environment.”

The money raised for Next Generation EU will be invested across three pillars:

1. Support to Member States with investments and reforms
2. Kick-starting the EU economy by incentivising private investments
3. Addressing the lessons of the crisis

All of the money raised through Next Generation EU will be channelled through EU programmes in the revamped long-term EU budget:

• The European Green Deal as the EU’s recovery strategy
• Strengthening the Single Market and adapting it to the digital age
• A fair and inclusive recovery for all