The European Parliament and the Council of the European Union have agreed on a seven-year community budget for 2021-2027. The budget will amount to 1.8 trillion euros, of which 750 billion euros is the NextGenerationEU aid package for the European economy after the coronavirus pandemic. Funds for NextGenerationEU will be attracted by the European Commission (EC) until the end of 2026 in the form of borrowings for a period until December 31, 2058. The current budget will be almost double the previous seven-year period 2014-2020.
“I welcome today's agreement on our Recovery Plan and the next Multi-Year Financial Framework. We now need to move on to finalizing the agreement on the next long-term budget and NextGenerationEU by the end of the year. Help is needed by citizens and businesses hard hit by the coronavirus crisis. Our recovery plan will help us turn the pandemic into an opportunity for recovery through the transition to a green and digital economy, ”said European Commission President Ursula von der Leyen.
More than 50% of the NextGenerationEU program will support modernization, research and innovation through Horizon Europe; digital transition through the Just Transition Fund and the Digital Europe Program; preparedness, recovery and resilience through the Recovery and Resilience Fund, rescEU and the new EU4Health health program.
30% of the EU's seven-year budget will be spent on fighting climate change and this is the highest share of the largest European budget ever. The package also focuses on protecting biodiversity and gender equality.
The budget and aid packages approved today are to be formally adopted by the European Parliament and the Council in accordance with their respective functions and procedures.