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

The Committee on Economic and Monetary Affairs (ECON) hear Christine LAGARDE, President of the European Central Bank, in her capacity as both President of the ECB and Chair of the European Systemic Risk Board. The economic recovery from the pandemic is top the issues to be discussed in the European Parliament in Brussels.

Monetary Dialogue with Christine LAGARDE, President of the European Central Bank: extracts from the meeting

Siegfried MUREŞAN (EPP, RO), Eider GARDIAZABAL RUBIAL (S&D, ES) and Dragoș PÎSLARU (renew Europe, RO), rapporteurs, speak to the press on recovery and Resilience Facility, in the European Parliament in Brussels.

Press conference by Siegfried MUREŞAN (EPP, RO), Eider GARDIAZABAL RUBIAL (S&D, ES) and Dragoș PÎSLARU (renew Europe, RO), rapporteurs, on Recovery and Resilience Facility

During the plenary session (11 - 13 November 2020) of the European Parliament in Brussels, MEPs debate Multiannual Financial Framework (including Own Resources), Rule of Law Conditionality Mechanism and the Recovery Fund for Europe. Opening remark by David SASSOLI, EP President. The following transcription is the result of an automatic process. Check Against delivery.

Multiannual Financial Framework (including Own Resources), Rule of Law Conditionality Mechanism and the Recovery Fund for Europe. Opening remark by David SASSOLI, EP President

During the plenary session of the European Parliament in Brussels, MEPs discuss the agreement reached on EU financing, as well as the deal linking EU funding to respect for the Rule of Law. Statements by Johannes HAHN, European Commissioner for Budget and Administration and the rapporteurs, Jan OLBRYCHT (EPP, PL), Johan VAN OVERTVELDT (ECR, BE), José Manuel FERNANDES (EPP, PT) and Valérie HAYER (RE, FR).

Multiannual Financial Framework, Rule of Law Conditionality Mechanism and the Recovery Fund for Europe: extracts from the debate

Johan VAN OVERTVELDT (ECR, BE), Chair of the Committee on Budgets, Jan OLBRYCHT (EPP, PL) and Margarida MARQUES (S&D, PT), MFF co-rapporteurs, José Manuel FERNANDES (EPP, PT), and Valérie HAYER (Renew Europe, FR), Own Resources co-rapporteurs, and Rasmus ANDRESEN (Greens/EFA, DE), speak to the press on the next MFF and Own Resources, in the European Parliament in Brussels. This transcription speech is the result of an automatic process. Check against delivery. Please note, for this press conference no language interpretation is available.

Press Conference on the next MFF and Own Resources

Paolo DE CASTRO (S&D, IT), rapporteur, speaks to the press on the recovery aid for EU farmers and food producers in the European Parliament in Brussels.

Press Conference by Paolo DE CASTRO (S&D, IT), rapporteur, on the recovery aid for EU farmers and food producers

Valérie HAYER (RE, FR) and José Manuel FERNANDES (EPP, PT), rapporteurs, speak to the press on the legislative opinion on the Own Resources decision, in the European Parliament n Brusels.

Press conference by Valérie HAYER (RE, FR) and José Manuel FERNANDES (EPP, PT), rapporteurs, on the legislative opinion on the Own Resources decision

Ursula von der LEYEN, President of the EC gives her first State of the European Union address during the plenary session (14-17 September) of the European Parliament in Brussels. She is set to outline the impact of the COVID-19 outbreak, on the recovery plan and the economic situation, on the Green Deal, on the migration crisis, on the EU-Turkey relations, on the on the situation in Belarus,...

State of the European Union 2020: extracts from the statement by Ursula von der LEYEN, President of the EC

During the plenary session (14-17 September 2020) of the European Parliament in Brussels, MEPs accelerate the procedure that will enable the EU to borrow €750 billion for the “Next Generation EU” recovery plan. The vote on the own resources decision makes it possible to start the ratification process in 27 EU countries - so that the COVID-19 recovery plan can be launched as soon as possible.

Proposal for a Council decision on the system of own resources of the European Union: extracts from the debate (14/09) from the vote and from the press conference

Statements by European Parliament’s political groups leaders at the debate "Toghether for a better Europe". This event is taking place on the eve of one of the most important moments for the European Institutions : the State of the Union debate.

Together for a better Europe: statement by Iratxe GARCÍA PÉREZ (S&D, ES), S&D Group Leader

Together for a better Europe: statement by Philippe LAMBERTS (Greens/EFA, BE), Greens/EFA Group Leader

Together for a better Europe: statement by Dacian CIOLOŞ (Renew Europe, RO), Renew Europe Group Leader

Together for a better Europe: statement by Manon AUBRY (GUE/NGL, FR), GUE/NGL Group Leader

This Infoclip illustrates the MFF and the recovery fund in the perspective of the SOTEU (EU Council 21 July 2020, Euro Banknotes, CAP, regional policy, Search, Erasmus, EU own ressources (Gafam, plastic, CO2 producers...).

Infoclip: SOTEU debate - Recovery plan - MFF

This infoclip illustrates the Green Deal and the effects of climate change in the perspective of the State of the European Union Debate 2020 (pollution, ice melting, fire forest, deforestation, floods, windmills, solar panels, electric car...).

Infoclip: Green deal - Climate change

This Infoclip illustrates the Rule of law in Hungary: general views of Budapest, newspapers, television channels headquarters, various institutional buildings (Hungarian Parliament, Supreme Court, Budapest-Capital Regional Court, Fidesz Headquarter, Hungarian Academy of Sciences, Carmelite Monastery - Prime Minister office, Viktor ORBÁN, Hungarian Prime Minister).

Infoclip: Rule of law - Hungary

EP’s Multiannual Financial Framework-Own Resources Contact Group, chaired by David SASSOLI, EP President meet to discuss the state of play of the negotiations on the EU long-term budget and recovery plan, in the European Parliament in Brussels. Cutaways of Johan Van Overtveldt (ECR, BE), Chair of the Committee on Budgets, Jan Olbrycht (EPP, PL), MFF co-rapporteur, Margarida Marques (S&D, PT), MFF co-rapporteur, José Manuel Fernandes (EPP, PT), Own Resources co-rapporteur, Valérie Hayer (RENEW, FR), Own Resources co-rapporteur.

Multiannual Financial Framework-Own Resources Contact Group: arrivals and roundtable

This Infoclip illustrates the Rule of law in Poland: general views of Warsaw, newspapers, headquarters of televisions, various institutions buildings (Prime Minister Chancellery, the Parliament, the Constitutional Tribunal, Presidential Palace, Supreme Court House), Andrzej DUDA, President of Poland and Mateusz MORAWIECKI, Polish Prime Minister.

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