The European Commission has proposed a new economic recovery instrument called “Next Generation EU” aimed at building a lasting and prosperous recovery after COVID-19. It will amount to 750 billion which will be borrowed from financial markets and channeled to provide additional funding to cohesion programmes, support investments in Member States, and strengthen the EU’s health security. Namely,

  • new Recovery and Resilience Facility of €560 billion will offer financial support for investments and reforms;
  • A new REACT-EU initiative under which €55 billion will be added to the current cohesion policy programmes between now and 2022; 
  • €15 billion reinforcement for the European Agricultural Fund for Rural Development to support rural areas;
  • new Solvency Support Instrument will stimulate private investment in European companies in the sectors, regions and countries most affected.
  • new Health Programme, EU4Health, to strengthen health security and prepare for future health crises with a budget of €9.4 billion.
  • A €2 billion reinforcement of rescEU, the Union’s Civil Protection Mechanis;
  • A €94.4 billion reinforcement of Horizon Europe to fund vital research in health, resilience and the green and digital transitions

The Commission has also proposed to make an additional €11.5 billion in funding available already in 2020 to respond to the most pressing needs caused by the pandemic.


For more information, please visit the Commission’s website.