Its aim is to boost public investment with a three-pronged objective: (i) to boost aggregate demand; (ii) to support the most hard-hit countries in the pursuit of cohesion; and (iii) to strengthen the economic growth potential of the Union (e.g. We will use this data to improve your experience on our website. [11] This measure was endorsed by 7 other member states, France, Belgium, Greece, Portugal, Ireland, Slovenia, and Luxemburg. As a comparison, the European "Green Deal", which was presented in November 2019 and was to extend over a decade, was a €1,000 billion package. Ignoring the virus pattern and putting financial concerns over health concerns, EU member states reacted unilaterally and refused to come to Italy's assistance to fight the massive virus outbreak in Lombardy eventually causing its spread across Europe. The Next Generation of Africa-Europe Relations - The ‘Debating Africa-EU’ series with Jutta Urpilain [35], An overall climate target of 30% will apply to the total amount of expenditure from the MFF and NGEU in compliance with the Paris climate accord[36] and in line with the objectives of the European Green Deal, the flagship initiative to address the climate emergency. In addition to the aforementioned issues, the package also focuses on modernizing traditional policies such as cohesion and the common agricultural policy, to maximize their contribution to the Union's priorities, fighting climate change, with 30% of the EU funds, the highest share ever of the European budget and biodiversity protection and gender equality. SUMMARY . The programme comprises a number of loans and grants that will be funded by taking out European debt. [16] In the first place, the “frugal four” wanted to reduce the amounts of grants and asked for stronger conditionality for the expenditure of the funds, furthermore there were concerns on which programs to fund, the frugal four wanted more funds on R&D, Digital Economy and Green investments, while the “Friends of Cohesion” (Southern and Eastern European Members) wanted the allocation to Cohesion Funds to be the same. 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EU Budget und Aufbaufond "Next Generation EU" beschlossen facebook facebookMessenger whatsapp twitter mail pocket Wir würden hier gerne eine Newsletter Anmeldung zeigen. All of the money raised through Next Generation EU and the new EU budget will be channelled through EU programmes. The exceptional nature of the economic and social situation due to the COVID-19 crisis requires exceptional measures to support the recovery and resilience of the economies of the Member States. Three-quarters of Next Generation EU payments will have to wait until 2023. In order to do so, two targets have been set: 37% of the spending must be channeled to green and 21% to digital related actions. In July 2020, the European Commission announced its €750 billion package to revive the postpandemic European economy, Next Generation EU. Press officers speak 'off the record' about the Council's activities. Retrieved on March 4, 2021, from European Council: Post-Brexit United Kingdom relations with the European Union, European Union response to the COVID-19 pandemic, Article 7 of the Treaty on European Union, Special European Council, 17-21 July 2020 - Main results, "WHO says Europe is new epicenter of coronavirus pandemic", "Lockdown policies and the dynamics of the first wave of the Sars-CoV-2 pandemic in Europe, Journal of European Public Policy", "Tutte le divisioni nell'Unione europea sulla risposta alla crisi da Covid-19", "ECB announces €750 billion Pandemic Emergency Purchase Programme (PEPP) (europa.eu)", "Pandemic emergency purchase programme (PEPP) (europa.eu)", "Competition - State aid - State aid rules and coronavirus - European Commission (europa.eu)", "Thomas Plümper & Eric Neumayer (2020): Lockdown policies and the dynamics of the first wave of the Sars-CoV-2 pandemic in Europe, Journal of European Public Policy, DOI", "ESM Pandemic Crisis Support, European Stability Mechanism", "The EU can't agree on how to help Italy and Spain pay for coronavirus relief", "coronavirus, la Ue si spacca sui Covid-bond: lo scoglio debiti", "France, Germany propose €500B EU recovery fund", "Next Generation EU recovery plan. [37], NGEU is a push to a unified European fiscal policy. Quali sono le procedure? It consists of the heads of state or government of the member states, together with its President and the President of the Commission. [44][45], To receive support from the RRF, member states – technically assessed by the Commission – need to submit national Recovery and Resilience Plans (RRP), including targets, milestones and estimated costs. [2], On March 2020 Europe was struck by its first wave of covid-19 epidemic, which originated in china. Next Generation EU is the ambitious plan to help European Union member states recover, repair and emerge stronger from the Covid-19 crisis. It is an ambitious and comprehensive package In the short term, REACT-EU 23 will endow cohesion policy funding with EUR 55 billion for 2020-22. Q&A : Next Generation EU - Legal Construction . [12] However, the so called “Frugal Four” (Austria, Sweden, the Netherlands,[13] and Denmark) led by Germany refused this proposition, scared that they would have to repay their debt in case of default. [14] On May 27, 2020, the Commission presents the “Next Generation EU” plan. COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS. On an economic point of view the spreading of the virus across Europe plunged the continent in a deep economic crisis, national economies were not functioning well due to the widespread lockdown. Free full text . They will enable breakthrough results by connecting the physical to the digital world in innovative ways, thereby creating new business value. The deadline for submission of the Recovery and Resilience plans is 30 April 2021. [17] Lastly there were problems linked with the “rule of law” conditionality. All amounts in € billion (2018 prices) Total budget: 1824.3. [3] Early responses were different depending on the country, most member states in the EU were hesitant at first, not wanting to close everything and establishing a nationwide lockdown, fearing it may cause damage to the economy, however after a couple of weeks of the firsts confirmed cases, most countries decided to close their borders and established a national lock down. [43] Any conditionality concerning the governments of Poland and Hungary, accused of repeated breach of Article 7 of the Treaty on European Union, is avoided. Increased funding for InvestEU – the second pillar of the mechanism – will also be provided. Although rarely mentioned, EU standards will be crucial for the economic recovery from the COVID-19 pandemic. European Commission Questions and answers Brussels, 09 Jun 2020 The proposed architecture of the exceptional financing is based on three pillars: The Own Resources Decision authorises the full amount of the borrowing, to be... Main link: Q&A : Next Generation EU - Legal Construction. The primary objective is to help its Member States in order to repair the immediate economic and social damages caused by the coronavirus pandemic. From. Standards are rarely … The Next Generation EU programme is a package of European Union funds aimed at repairing the immediate economic and social damage caused by the COVID pandemic. Next Generation EU of €750 billion as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the total financial firepower of the EU budget to €1.85 trillion. NEXT GENERATION EU A1. [40] But instead of this, the budget deal provides NGEU-skeptical Germany and the so-called Frugal Four Denmark, the Netherlands, Austria and Sweden with even larger rebates, in total 53.2 billion €[41] for the 2021–2027 budget period financed by all Member States according to their GNI. [4] The next-generation IoT and edge computing are of great strategic importance for European industry in the data economy. [19][20] The deadline for the presentation of national plans is the 30th of April 2021, however proposals were already sent to the Commission from mid-October 2020, those proposals will help the Commission understand in which direction the member states are going and eventually re-orient and assist the national's governments with modifications. [39], With the departure of the UK, there was also hope of phasing out the perk of national rebates in the EU. How a lack of transparency could dash EU hopes for a green pandemic recovery", European Coal and Steel Community (1951–2002), European Economic Community (1958–1993/2009), Mechanism for Cooperation and Verification, Cities with more than 100,000 inhabitants, Largest cities by population within city limits, Saint Helena, Ascension and Tristan da Cunha, Statistics of the COVID-19 pandemic in India, COVID-19 local lockdown regulations in England, First COVID-19 tier regulations in England, Federal aid during the COVID-19 pandemic in Canada, Decentralized Privacy-Preserving Proximity Tracing, Chinese Academy of Medical Sciences COVID-19 vaccine, European Commission–AstraZeneca COVID-19 vaccine dispute, Sancaktepe Prof. Dr. Feriha Öz Emergency Hospital, Yeşilköy Prof. Dr. Murat Dilmener Emergency Hospital, NHS Nightingale Hospital Yorkshire and the Humber, Kandakadu Treatment and Rehabilitation Centre, Coalition for Epidemic Preparedness Innovations, International Committee on Taxonomy of Viruses, COVID-19 Response Acceleration Task Force, Great American Economic Revival Industry Groups, Inter-Agency Task Force on Emerging Infectious Diseases, Joint Committee on Vaccination and Immunisation, National COVID-19 Commission Advisory Board, Africa Centres for Disease Control and Prevention, Coronavirus Scientific Advisory Board (Turkey), Korea Disease Control and Prevention Agency, Tests, cases, tests per capita, cases per capita by country, Tests, cases, tests per capita, cases per capita by country subdivision, World map by countries: confirmed per capita, https://en.wikipedia.org/w/index.php?title=Next_Generation_EU&oldid=1016382380, International responses to the COVID-19 pandemic, Creative Commons Attribution-ShareAlike License, RescEU (natural disaster relief and health crisis), This page was last edited on 6 April 2021, at 21:42. As a first step, a new own resource based on non-recycled plastic packaging waste will be introduced as of 2021. The Next Generation EU package provides more resilience over the medium term to the EU/Eurozone economies than countercyclical support over the near-term. Capital raised on financial markets.Repayment period until 2058. Quando arriveranno i soldi? Our exercise shows that it would be worthwhile considering a more permanent macroeconomic stabilisation mechanisms in the future to allow the EU/Eurozone economies to respond more effectively to any future shock. Current Call for tenders. [26] Thus, it plans to strengthen the EU’s Single Market and invest in shared European priorities. I. The European Council brings together EU leaders at least four times a year. Click here for direct download EU expenditure for 2021-2027. [22] Additionally, prepare a better future for European next generation. The Council of the EU and the European Council work on a wide range of issues affecting the interests of the EU and its citizens. According to Christine Lagarde, the NGEU also represents a major change in the structure of the European Union and a new tool with the potential to be activated in future crises. [48] Also known informally as the EU Council, it is where national ministers from each EU country meet to adopt laws and coordinate policies. Member States are encouraged to submit a preliminary draft plan from 15 October 2020. 25% des gesamten EU Budgets sollen klimarelevante Investitionen sein. On the basis of the extensive consultations held at the level of the President of the European Council and the work done in the Council, the conclusions present a balanced solution catering for the interests and positions of all Member States. Next Generation EU will raise money by temporarily lifting the maximum amount that the EU can request from Member States to cover its financial obligations to 2.0% of EU Gross National Income. Committees and working parties handle the preparatory work on files before they are discussed at Council meetings. Next Generation EU, the unprecedented fiscal package adopted by the European Council this summer, is a commendable endeavour. [29], The money borrowed in the name of the EU is to be used for 390 billion € in relief grants and 360 billion € in longer-duration loans[30] and will be repaid in 2028-2058. This huge recovery fund would be integrated in the EU budget for a total of 1.85 trillion euros. Investing the money . With your permission, we will use AT internet cookies to produce aggregated, anonymous data about our visitors' browsing and behaviour on our website. You can also take a look at Council publications, access the archives and search for legislation that the Council negotiates together with the European Parliament. Eueopean Council, (February 2021). [27], NGEU is limited in time: 70% of the grants provided by the Recovery and Resilience Facility (RRF) will be committed in the years 2021 and 2022. This way, the Commission will be able to take advantage of its particularly strong credit rating in order to borrow €750 billion on the financial markets for Next Generation EU. A recovery plan for Europe. €390 billion grants; €360 billion loans; Capital raised on financial markets. The Next Generation EU proposal stands in remarkable contrast to this traditional reading. Topic . The press office is the first point of contact for all media requests. Erstmals nimmt die EU gemeinsam Schulden in der Höhe von 750 Milliarden Euro auf. Filter. Dabei möchte sich die EU-Kommission der Taxonomie bedienen. Your download does not start? The socio-economic impact of the coronavirus pandemic across the European Union (EU) is posing significant challenges, not least to the good functioning of the single market and the euro area. Recovery and Resilience Facility: €672.5 billion … [18] Finally, on November 10, 2020, the European parliament and the council reached a definitive agreement which integrates the 2021-27 MFF of 1074,3 billion euros and the temporary instrument for recovery “Next generation EU “of 750 billion euros. Next Generation EU . Because of hurdles in designing, approving and implementing European Union programmes, less than a quarter of the €438 billion in grants planned under the new EU recovery instruments is expected to be spent in the next two and a half years, when recovery needs will be greatest. Italian Prime minister Giuseppe Conte, backed by Spanish Pm Pedro Sanchez, proposed the so called “corona bonds” as a measure to recover from the crisis, it consisted of the emission of joint public debt at the EU level, creating a solidarity mechanism for the redistribution of debt between the European states. Find out more about documents and publications. The European recovery plan, named Next Generation EU, was launched in the heart of the pandemic crisis that began in early 2020. Wie der brutkasten berichtete, machte die EU-Kommission nun unter dem Titel Next Generation EU einen konkreten Vorschlag zu einem 750 Milliarden Euro Corona-Konjunkturprogramm. Certain cookies are used to obtain aggregated statistics about website visits to help us constantly improve the site and better serve your needs. Date . A2. The Council of the EU is the institution representing the member states' governments. Multiannual financial framework (MFF): 1074.3; Next Generation EU: 750; Climate and digital mainstreaming: Climate: target 30% of spending across all programmes; Digital: priority across all programmes, and 20% of the Recovery and Resilience Facility In addition to Next Generation EU, the Commission is proposing a revamped EU budget, amounting to some €1 100 billion between 2021-2027. This brings the total of the JTF to €40 billion (instead of the initial €7.5 billion). saw their national debt and public spending raise, mainly due to the increasing expenditure of national healthcare and health related products, and in order to tackle the economic crisis. [46] Eventually the European Council will politically approve the proposals voted by qualified majority.[47]. Verwey et al. The "Next Generation EU" package, running to €750 billion, will be used for investing in a green, digital and resilient EU. The firepower of Next Generation EU would amount to €750 billion and reinforce a 2021-2027 MFF worth €1.1 trillion, bringing the total amount of resources channelled through EU budgetary instruments to €1.85 trillion over the entire programming period (all figures in this The initial response of Europe to the outbreak of COVID-19 in March 2020 was haphazard. The Next Generation EU and the EU’s budget for the period 2021-2027, approved on November 10, 2020, represent the biggest economic aid package ever financed by the EU. Nevertheless, some issues, addressed in the upcoming Council meetings, were still present. Existing estimates, including my earlier ones, allocated these 2018 price amounts across countries, or reported the yearly breakdown of the total, but did not include the yearly breakdown per country in current prices in euros. Member states will be provided loans and grants in frontloaded financial support for the crucial first years of the recovery. The proposal, called Next Generation EU, is a temporary reinforcement of EU’s long-term budget for 2021 – 2027. Date: 22/07/2020 . To help do this in a fair and shared way, the Commission will propose a number of new own resources. The NGEU fund goes over the years 2021–2023 and will be tied to the regular 2021–2027 budget of the EU (MFF). In response to this threat, the Next Generation EU (NGEU) fund will ensure that all member states can react appropriately to the crisis. The Next Generation EU (NGEU) recovery response to the Covid-19 crisis, one of the most ambitious EU integration projects so far, risks foundering over differences of procedure that ought to guarantee the link between observing the rule of law and disbursing EU funds.