European leaders met to draw up a Recovery Plan based on the use of the full potential of the European Union budget.
On 17 and 21 July, representatives of the European Union met to reach an agreement on the Recovery Plan proposed on 26 May by the European Commission, and on the Multiannual Financial Framework 2021-2027, to help repair the economic and social damage caused by the coronavirus pandemic, initiate European recovery and preserve and create jobs.
This agreement, which will be evaluated by the European Parliament, aims to pave the way towards the end of the crisis and lay the foundations for the construction of a sustainable and digital Europe.
In the words of President Charles Michel, at the subsequent press conference of the European Council: “We have reached a deal on the recovery package and the European budget. These were, of course, difficult negotiations in very difficult times for all Europeans. A marathon which ended in success for all 27 member states, but especially for the people. This is a good deal. This is a strong deal. And most importantly, this is the right deal for Europe, right now”.
Joint and innovative effort
The consequences of the Covid-19 can be seen in several areas and industries, so it is essential to work on a strategy at European level to support the economic recovery of each of the 27 States.
To this end, during the sessions they decided to link the European recovery to the Multiannual Financial Framework (MFF), which establishes the European budgetary measures governing the next seven years of the economy and the Community market.
The agreement was based on a global package of more than 1.82 billion euros that covers this framework and the extraordinary recovery measures under the instrument “Next Generation EU”.
Principles of the Multiannual Financial Framework
This new MFF, which will come into force in 2021, is based on seven spending areas:
- Single market, innovation and digital.
- Cohesion, resilience and values.
- Natural resources and the environment.
- Migration and border management.
- Security and defence.
- Neighbourhood and the world.
- European public administration.
Extraordinary recovery fund
The extraordinary recovery fund, called “Next Generation EU”, provides EU countries with the necessary resources to meet the challenges posed by the Covid-19 pandemic.
These funds rest on three pillars:
- Supporting Member States to recover.
- Kick-starting the economy and helping private investment.
- Learning the lessons from the crisis.
One part of the European Recovery Plan focuses on achieving climate goals for 2030, climate neutrality by 2015 and the Paris Agreement. To this end, according to the new agreement, it is expected that 30% of the MFF and the “Next Generation EU” funds will have to be allocated to climate-related projects.
Access to the complete Agreement, through the following link.