Open strategic autonomy ensures the capacity to cope alone if necessary but without ruling out cooperation whenever possible. It relies on foresight to identify threats and ensures resilience by anticipating the required responses. Can the resulting preparedness also prevent crises (or dissuade others from creating them) by normalising internally situations that would else become emergencies?

EPRS STOA podcast - What if open strategic autonomy could break the cycle of recurring crises?

The EU’s 2021-2027 long-term budget, together with NextGenerationEU, amounts to €1.8 trillion. This unprecedented response will help repair the economic and social damage caused by the coronavirus pandemic and aid the transition towards a modern, more sustainable Europe.

The package consists of the long-term budget (the 2021-2027 MFF multiannual financial framework) of €1.074 trillion, combined with the temporary recovery instrument NextGenerationEU of €750 billion.

It was adopted by the European Parliament on 16 December 2020.

MEPs negotiated major top-ups for EU flagship programmes like Health, Horizon (Research), Erasmus+ and supported also a roadmap introducing new sources of EU revenue. This roadmap is part of the ‘Interinstitutional Agreement’, a legally binding text. In addition to the contribution made as of 2021, based on how much unrecycled plastic a country has, the roadmap includes an ETS (Emissions Trading System)-based Own Resource (from 2023, possibly linked with a carbon border adjustment mechanism). It also includes a digital levy (from 2023) and a Financial Transaction Tax-based Own Resource, as well as a financial contribution that the corporate sector must make or a new common corporate tax base (from 2026).

Parliament also approved in its February 2024 session, the revision of the EU’s long-term budget.

This includes the €50 billion Ukraine Facility and the “Strategic Technologies for Europe Platform” (STEP), which aims to make the EU more strategically independent and to foster innovation. It also enables the EU budget to respond more effectively to evolving needs and unforeseen circumstances. In particular, it bolsters the EU’s budget to deal with migration and external challenges as well as the EU's crisis preparedness and budgetary flexibility. In line with Parliament’s demands, the revision introduces a mechanism to tackle escalating costs linked to the repayment of the NextGenerationEU recovery plan amid rising interest rates.

EU Multiannual Financial Framework 2021-2027

Every year the European Central Bank publishes an annual report on how it has carried out its supervisory responsibilities, it describes the tasks and activities of the European System of Central Banks (ESCB) and reports on the Eurosystem’s monetary policy. The report is usually published in April of the following year. The Chair of the Supervisory Board of the ECB presents the report to the European Parliament at a public hearing and then during a debate in plenary.

European Central Bank - annual report

The coronavirus crisis is a major shock for the European and global economies. Member States have already adopted budgetary, liquidity and policy measures to increase the capacity of their health systems and provide relief to those citizens and sectors that are particularly impacted.

Among the measures the EU is taking to support the economic recovery are the EU's recovery plan, Next Generation EU, SURE: temporary support for workers, amendments to the EU budget to address urgent issues, re-direction of EU funds to help member states most in need, support to most affected sectors.

On 21 July 2020, EU leaders agreed on a €750 billion recovery effort, Next Generation EU, to help the EU tackle the crisis caused by the pandemic. Alongside the recovery package, EU leaders agreed on a €1 074.3 billion long-term EU budget for 2021-2027. Among others, the budget will support investment in the digital and green transitions and resilience.

Together with the €540 billion of funds already in place for the three safety nets (for workers, for businesses and for member states), the overall EU's recovery package amounts to €2 364.3 billion (source: Council).

Coronavirus outbreak: impact on economic situation

EU financed railway projects in Gävle, Sweden

Railway infrastructure upgrade Gävle-Åänge, Sweden - Recovery and Resilience (RFF)

Medical Equipment financed by the RRF/European Next Generation funds in an hospital of Madrid (Spain)

Press conference on REPowerEU chapters in recovery and resilience plans

EP Plenary session - REPowerEU chapters in recovery and resilience plans

ECON - ENVI joint Committee - Public Hearing on the complementary Taxonomy Delegated Act

BUDG ECON - joint Committee recovery and resilience Dialogue

EP Plenary Session - State of play of the RRF (Recovery and Resilience Facility)

BUDG - ECON joint Committee -  Recovery and Resilience Dialogue (RRF)

This infoclip shows footage of the Cukrarna Gallery opened in September 2021 in Ljubljana (Slovenia) with the contribution of the European Regional and Development Fund (ERDF). The Slovenian capital has gained a new space that serves both as a venue for exhibiting contemporary art and as a place where thoughts can be explored and contemporary art projects of all kinds – visual, intermedia, performance, sound, music and more – can be created and presented. The financial contribution from the EU ERDF is of 10,7 million euros for a total estimated value of 24,6 million euros.

Infoclip: "Cukrarna" Gallery - European Regional Development Fund (ERDF) - Ljubljana (Slovenia)

This infoclip shows the Ljubjana main train station and its ongoing renovation financed by the EU Recovery and Resilience Facility (RRF) that will increase the efficiency of rail transport for end users, especially by eliminating the existing bottleneck in Ljubljana. In particular, the renovation of the railway station in Ljubljana will increase the capacity for freight and passenger traffic in the wider city area with the aim of reducing the use of cars by daily migrants by enabling a 15-minute frequency of passenger trains in the Ljubljana area from all five directions in the morning and afternoon rush hours. The Recovery and Resilience Facility contributes EUR 214 million to the investment worth EUR 260 million in total. The works started in December 2023 and should be finalised by mid-2026.

Infoclip: Upgrade of the railway station - Recovery and Resilience Facility (RRF) - Ljubljana (Slovenia)

In the Tricity agglomeration (Gdańsk, Gdynia, Sopot), a large proportion of EU Cohesion funds are spent on road infrastructure. This infoclip shows the Gdańsk-Sucharski-Słowacki roads connecting Lech Wałęsa Airport with the seaport that have been built or renovated with EU Cohesion fund co-financing of 260 million euros. In Gdynia, Kwiatkowski road 41.1 million euros, Janek Wiśniewski street and the Wzgórze St. Maximilian interchange have been expanded. Using the EU support of 31.8 million euros, Tristar – an integrated traffic control system in Gdańsk, Gdynia and Sopot – has been developed and brought into use, which has shortened public transport journey times by 15%.

Infoclip: Road infrastructure - Cohesion Fund - Gdansk (Poland)

This infoclip shows the construction works for the new tram line in Tallinn (Estonia) running along a stretch of about 2.5 kilometers, starting at the intersection of Kivisilla and Gonsiori Streets and extending to Põhja Puiestee. The aim of the works is to improve the comfort of public transport, connecting Tallinn's main transport hubs and making transfers as easy as possible. The Vanasadama tram line construction works, including VAT and owner’s supervision, cost about €46 million, with €36.5 million from the EU Recovery and Resilience Facility (RRF).

Infoclip: Construction of the Old City Harbour tram line - Recovery and Resilience Facility (RRF) – Tallinn (Estonia)

The "Energy Cells" is a project that consists of a system of four energy storage devices (batteries) with a total capacity of 200 megawatts (MW) and 200 megawatt-hours (MWh) into Lithuania’s energy system. Energy Cells has four 50 MW and 50 MWh energy storage facilities at transformer substations in Vilnius, Šiauliai, Alytus, and Utena. It is currently the largest project in the Baltics and one of the largest of its kind in Europe. Energy Cells received 87.6 million euros from the NextGenerationEU, the Recovery and Resilience Facility under the “New Generation Lithuania” plan for the installation of the energy storage system. The total value of the project, which will provide Lithuania with the instantaneous power reserve and the possibility to operate autonomously in isolated mode, is of 109 million euros.

Infoclip: Integrated system for batteries "Energy Cells" - Recovery and Resilience Facility (RRF) - Vilnius (Lithuania)

This infoclip shows the António Cruz Serra residence is located between several academies at the University of Lisbon, with close access to the University's central services. The residence has mixed occupancy, offering rooms of different types, which include access for reduced mobility. The residence has various study rooms for a large number of residents and several social and leisure spaces. Residents may also have access to areas at their disposal for preparing food, as well as washing and drying clothes. The total number of beds is 335. they are distributed in 145 single rooms, 90 double rooms, and 10 reduced mobility rooms. The student’s residence had financial support from the Next Generation EU (Recovery and Resilience Facility) with 10.232.575,00 €.

Infoclip: University Residence for students - Recovery and Resilience Facility (RRF) - Lisbon (Portugal)

The Recovery and Resilience Mechanism (RRM) is a temporary instrument that forms the centerpiece of the NextGenerationEU funds. The Swedish recovery and resilience plan has responded to the urgent need to foster a strong recovery, while making the Swedish economy and society more resilient and prepared for the future through the €3.2 billion allocated to the country. On green transportation, €148 million will be invested in strengthening support to improve railway capacity. For instance,more than 60 km of Swedish railway tracks were upgraded and 6 switches were replaced on the Gävle-Åänge route. The ultimate goal is to increase rail capacity and enable more people and companies to use rail as a means of transport.

Infoclip: Railway infrastructure upgrade - Recovery and Resilience Fund (RRF) - Gävle-Vallvik (Sweden)

The Digital Pact ("DigitalPakt") for Schools 2019-2024 builds on the strategy of the Standing Conference of the Ministers of Education and Cultural Affairs "Education in the Digital World". The whole funds for DigitalPakt were 6,5 billion euros (of the total amount the Recovery and Resilience Facility fund for digitalization of the education contributed for 1,435 billion euros). Berlin state received 256,9 million euros.The goal of of the project is to enabling pupils of all school levels and school types to develop basic skills for a confident handling of the digital world. In order to achieve this, investments are intended to improve the digital infrastructure as well as the technical equipment of schools and their administration. This infoclip shows the application of funds to the Immanuel-Kant-Gymnasium in Berlin, in particular 3D-printing of objects and design of the high-school logos on t-shirts.

recovery and resilience facility (T)

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