The European Commission has put forward its proposal for the recovery plan, Next Generation EU, which will be included within the long-term EU budget. The recovery instrument should ensure the sustainable, inclusive and fair recovery for the EU. The budget earmarks €94.4 billion for Horizon Europe where research in health and green and digital transitions will be crucial.
Next Generation EU will have a budget of €750 billion, as well as targeted reinforcements to the long-term EU budget for 2021-2027 – making the EU budget’s new total for this period €1.85 trillion.
The money raised for Next Generation EU will be invested in:
- Kick-starting the EU economy by incentivising private investments, including a €15.3 billion upgrade to InvestEU.
- Addressing lessons from the coronavirus crisis with EU4Health, a new health programme with a budget of €9.4 billion, and €94.4 billion for Horizon Europe to fund vital research in health, resilience and the green and digital transitions.
- Support to Member States with investments and reforms including a €55 billion top-up of the current cohesion policy programmes and a proposed strengthening of the Just Transition Fund up to €40 billion. This is as well as a €15 billion reinforcement to the European Agricultural Fund for Rural Development.
The European Green Deal remains at the centre of the budget and serves as the EU’s recovery strategy. It will do so with a wave of renovation for buildings, infrastructure and a circular economy, the rolling out of renewable energy projects, cleaner transport and logistics and support to re-skilling through the Just Transition Fund.
Adaptation to the digital age is also central to the new budget, as the Commission proposes investments in more and better connectivity means, like 5G, a stronger industrial and technological presence in strategic sectors such as Artificial Intelligence, building cyber resilience and a real data economy. They also propose the Skills Agenda for Europe with a Digital Education Action plan.
For more information about today’s announcements, click here.