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

This package contains the events between 1st July 2019 and 31 December 2020. For latest events, see related links.

There have been five multiannual financial frameworks (MFFs) to date. The Treaty of Lisbon transformed the MFF from an interinstitutional agreement into a legally binding act. Established for a period of at least five years, an MFF must ensure that the Union’s expenditure develops in an orderly manner and within the limits of its own resources, and sets out provisions with which the annual budget of the Union must comply, thus laying the cornerstone of financial discipline.

After almost five days of negotiations, the European Council finally reached a political agreement on the Multiannual Financial Framework (MFF) for 2021 to 2027 and a specific recovery instrument following the coronavirus crisis – Next Generation EU (NGEU) – together totalling €1 824.3 billion. Before the MFF can enter into force, the Parliament must give its consent, which is also a pre-condition for the adoption, by co-decision, of legislation on the new policy programmes.

EU Multiannual Financial Framework 2021-2027 and recovery plan (2019-2020)

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

The European Parliament together with the French Parliament organised&nbsp;a virtual European Parliamentary Week 2022 on 15-16 March 2022.&nbsp;The European Parliamentary Week consists of the European Semester Conference and the Interparliamentary Conference on Stability, Economic Coordination and Governance in the European Union.

This year the conference was dominated by the impact of the COVID-19 crisis on EU economies, its recovery and next steps. The parliamentarians will debated on the implementation of the national recovery and resilience plans as well as on the reform of the Stability and Growth Pact and the new own-resources.&nbsp;Roberta Metsola, EP President, opened&nbsp;the event which counts with several Prime Ministers and European Commissioners&nbsp;among the high-level speakers.

The Recovery and Resilience Facility (RRF) is intended to be the Union's main tool in support of economic and social recovery from the consequences of the coronavirus pandemic.&nbsp;The RRF entered into force on 19 February 2021 It will provide €672.5 billion in grants and loans as financial support over the coming years. The Facility is the flagship instrument of Next Generation EU and aims to offer large-scale financial support for public investment and reform, in order to mitigate the economic and social consequences of the pandemic in the Member States and to make EU economies more sustainable. The scope of application refers to policy areas related to economic, social and territorial cohesion, the green and digital transitions, health, competitiveness, resilience, productivity, education and skills, research and innovation, smart, sustainable and inclusive growth, jobs and investment, and the stability of the financial systems. In order to receive support through the Facility, Member States are required to produce recovery and resilience plans proposing a congruent set of reforms and public investment projects that could be implemented up until 2026. Currently 22 of the 26 submitted national recovery plans&nbsp;have been approved. The Commission has not yet approved the Hungarian, Polish, Swedish and Bulgarian plans. Requested pre-financing of €52.3 billion has already been disbursed to 17 Member States.

Recovery and resilience facility (RRF)

EU financed railway projects in Gävle, Sweden

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

EP Plenary session - short presentation : An intellectual property action plan to support the EU’s recovery and resilience

EP Plenary session -  Capital Markets Recovery Package: adjustments to the securitisation framework

EP Plenary session -  Good governance of national Recovery&Resilience Plans

Lex Signing ceremony on Recovery and Resilience Facility:  - Joint Press Conference by David SASSOLI, EP President, Antonio COSTA, Portuguese Prime Minister and by Ursula von der LEYEN, EC President, on behalf of the Presidency of the Council

Lex Signing ceremony on Recovery and Resilience Facility:  - Signature by David SASSOLI, EP President and by Antonio COSTA, Portuguese Prime Minister on behalf of the Council and in the presence of Ursula von der LEYEN, President of the EC

EP plenary session - Capital Markets Recovery Package: MIFID and EU Recovery Prospectus

EP plenary session- Establishing the Recovery and Resilience Facility

Press conference - The next MFF and Own Resources - Press Conference by Johan VAN OVERTVELDT, Chair of the Committee on Budgets,

Meeting with the Multiannual Financial Framework-Own Resources Contact Group

State of the European Union - Debate

State of the European Union 2020 (SotEU) - MEP Debate

EP Plenary session - State of the Union

State of the European Union 2020 (SotEU) - Opening statement by Ursula VON DER LEYEN, EC President

State of the European Union debate: Statements by Political group Leaders

State of the European Union 2020 (SotEU) - Debate on Migration

EP Plenary session - State of the Union (SotEU)

ENVI meeting, Committee on the Environment, Public Health and Food Safety - Exchange of views with the Commission on the EU vaccines strategy, including the state of play on the Vaccines Advance Purchase Agreement

Following the Commission endorsement of Poland's €35.4 billion recovery and resilience plan, MEPs question Ursula von der Leyen on this decision in light of long-standing concerns and persisting problems around the rule of law in the country. Opening statements by Council and Commission. Extracts from the debate.

The Rule of Law and the potential approval of the Polish national Recovery Plan (RRF): extracts from the debate

Following the Commission endorsement of Poland's €35.4 billion recovery and resilience plan, MEPs question Ursula von der Leyen on this decision in light of long-standing concerns and persisting problems around the rule of law in the country. Opening statements by Chrysoula ZACHAROPOULOU, French Minister of State for Development and by Ursula VON DER LEYEN, President of the European Commission.

The rule of law and the potential approval of the Polish national Recovery Plan (RRF): opening statements by Chrysoula ZACHAROPOULOU, French Minister of State for Development and by Ursula VON DER LEYEN, President of the European Commission

During the plenary session of the European Parliament in Strasbourg (4-7 October 2021), MEPs debate on the state of play of the Recovery and Resilience Facility plans (RRF) of member states awaiting for approval. Opening statements by Paolo GENTILONI, Commissioner for Economy. This transcription speech is the result of an automatic process. Check against delivery.

The state of play on the submitted RRF recovery plans awaiting approval: opening statement by Paolo GENTILONI, European Commissioner for Economy

During the plenary session of the European Parliament in Strasbourg (4-7 October 2021), MEPs debate on the state of play of the Recovery and Resilience Facility plans (RRF) of member states awaiting for approval.

The state of play on the submitted RRF recovery plans awaiting approval: MEPs debate

During the plenary session of the European Parliament in Strasbourg (4-7 October 2021), MEPs debate on the state of play of the Recovery and Resilience Facility plans (RRF) of member states awaiting for approval. Closing statements by Paolo GENTILONI, Commissioner for Economy.

The state of play on the submitted RRF recovery plans awaiting approval: closing statement by Paolo GENTILONI, European Commissioner for Economy

MEPs discuss the state of play of the Hungarian and Polish recovery and resilience plans. The Members debate with Commissioners Dombrovskis and Gentiloni on the key reasons behind the delay and the timelines for the Commission to approve both plans. The extension to approve the Polish recovery plan expired on 3 August and for the Hungarian plan on 30 September.

The state of play on the submitted RRF recovery plans awaiting approval: extracts from the debate

A delegation from the Civil Liberties Committee concluded on Friday a visit to Hungary in which they met with the Government, the opposition, journalists and NGOs. The aim of the trip was to assess the respect for press and academic freedom, judicial independence, the rights of minorities and the wider rule of law context on the ground. The delegation exchanged views with the Justice and Interior ministers, Budapest’s Mayor and representatives of the political opposition. They also met civil society organisations, journalists, the Commissioner for Fundamental Rights, representatives of academia and the education system, and of several cultural institutions. The delegation was headed by Gwendoline DELBOS-CORFIELD (Greens/EFA, FR). Video of the entire press conference released by Gwendoline DELBOS-CORFIELD (Greens/EFA, FR).

EP Press conference EP LIBE delegation to Hungary, Budapest

During the plenary session (13-16 September 2021) in the European Parliament in Strasbourg, Ursula VON DER LEYEN delivers the State of the European Union (SOTEU 2021) to the MEPs. Part 2 of the opening statement by Ursula VON DER LEYEN, President of the European Commission, on the following topics: - Success of the European vaccination campaign and the delivery of vaccines to Africa (200 million doses to the continent) - Economy: support to over 31 million workers and 2.5 million companies across Europe; investments in digital skills and infrastructures. Investments in the chips production. - Social and Equity: New European Health Strategy; Fight against tax fraud and tax evasion. - Youth: Next Generation EU shoul be funded by new own resources; Proposal to make 2022 the year of European youth. This transcription speech is the result of an automatic process. Check against delivery.

Part 2/5 - State of the European Union 2021 debate: opening statement by Ursula von der LEYEN, President of the European Commission, on a Europe united through adversity and recovery - Economy - Social and Equity - Youth

This Infoclip illustrates the economics topics in the perspective of the SOTEU 2021 and during the Covid-19 pandemic era (Economical crisis, Recovery Fund, workers, Green deal).

Infoclip: EU Recovery plan

This infoclip shows ilustrations of jobs in various sectors (distribution, medical, food, energy, education and more)

Infoclip: Employment - Illustrations of jobs in various sectors (distribution, medical, food, energy, education and more)

During the plenary session (7-10 June 2021) in the European Parliament in Strasbourg, MEPs debate on the views of the Parliament on the ongoing assessment by the Commission and the Council of the national Recovery and Resilience Facility plans.The RRF will make €672.5 billion in loans and grants available to support reforms and investments undertaken by Member States. The aim is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.

Parliament's views on the ongoing assessment by the Commission and the Council of the national recovery and resilience plans: MEPs debate (part 2/2)

Parliament's views on the ongoing assessment by the Commission and the Council of the national recovery and resilience plans: MEPs debate (part 1/2)

During a debate of the plenary session in Strasbourg, MEPs discuss with Council and Commission on the national recovery plans submitted by member states. Statements by Ana Paula ZACARIAS, Secretary of State for European Affairs of Portugal, Council of the European Union, Ursula VON DER LEYEN, President of the EC, Siegfried MUREŞAN (EPP, RO), Rapporteur, Iratxe GARCÍA PÉREZ (S&D, ES), Luis GARICANO (Renew, ES) and Damian BOESELAGER (Greens/EFA, DE).

National recovery and resilience plans: extracts from the debate

During the plenary session (7-10 June 2021) in the European Parliament in Strasbourg, MEPs debate on the views of the Parliament on the ongoing assessment by the Commission and the Council of the national Recovery and Resilience Facility plans: closing statements by Valdis DOMBROVSKIS, vice-president of the European Commission and by Ana Paula ZACARIAS, European Council. The RRF will make €672.5 billion in loans and grants available to support reforms and investments undertaken by Member States. The aim is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.

Parliament's views on the ongoing assessment by the Commission and the Council of the national recovery and resilience plans: closing statements by Valdis DOMBROVSKIS, vice-president of the Commission and by Ana Paula ZACARIAS, European Council

During the plenary session (7-10 June 2021) in the European Parliament in Strasbourg, MEPs debate on the views of the Parliament on the ongoing assessment by the Commission and the Council of the national Recovery and Resilience Facility plans: opening statements by Ana Paula ZACARIAS, European Council and by Ursula von der LEYEN, President of the European Commission. The RRF will make €672.5 billion in loans and grants available to support reforms and investments undertaken by Member States. The aim is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions. This transcription speech is the result of an automatic process. Check against delivery.

Parliament's views on the ongoing assessment by the Commission and the Council of the national recovery and resilience plans: opening statements by Ana Paula ZACARIAS, European Council and by Ursula von der LEYEN, President of the European Commission

During the plenary session of the European Parliament in Brussels (17-20 May 2021), MEPs debate on the right of information of the Parliament regarding the ongoing assessment of the national recovery and resilience plans: closing statements by Paolo GENTILONI, European Commissioner for Economy and by Augusto SANTOS SILVA, Portuguese Minister of State for Foreign Affairs

The right of information of the Parliament regarding the ongoing assessment of the national recovery and resilience plans: closing statements by Paolo GENTILONI and Augusto SANTOS SILVA

During the plenary session of the European Parliament in Brussels (17-20 May 2021), MEPs debate on the right of information of the Parliament regarding the ongoing assessment of the national recovery and resilience plans. One round political groups

The right of information of the Parliament regarding the ongoing assessment of the national recovery and resilience plans: one round political groups

During the plenary session of the European Parliament in Brussels (17-20 May 2021), MEPs debate on the right of information of the Parliament regarding the ongoing assessment of the national recovery and resilience plans: opening statements by Augusto SANTOS SILVA, Portuguese Minister of State for Foreign Affairs and President in office of the Council of the EU, and Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade.

The right of information of the Parliament regarding the ongoing assessment of the national recovery and resilience plans: opening statements by Augusto SANTOS SILVA and Valdis DOMBROVSKIS

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