The Budget of the 2021-2027 EU Funding Period

The 2021-2027 EU budget (including the NextGenerationEU instrument of €750 billion, for temporary recovery), amounts to €1.8 trillion. This time, the conditions are different. It is not only for development and for the transition to a modern sustainable Europe, but also for the repair of the economic and social damage caused by the coronavirus pandemic.

This new period introduces for the first time in EU history a balanced budget among the Common Agricultural Policy, the Economic-Social-Territorial Cohesion, and the New Priorities.

In more detail, out of the total:

• 50% will support research and innovation, digital transition and fight against disasters.
• 30% will support the fight against climate change, with environmental protection.
• 20% for all other fields, including recovery from the corona virus pandemic.

As far as specifically the NextGenerationEU instrument is concerned (which will be channelled through the EU’s long-term budget, particularly in the years 2021-2023), the funds will be distributed to EU countries and beneficiaries through grants (€390 billion) and loans (€360 billion). The majority of the funds will be spent through the Recovery and Resilience Facility (RRF) programme, which will consist of large-scale financial support to public investments and areas such as green and digital projects.

More Info: https://ec.europa.eu/info/strategy/eu-budget/long-term-eu-budget/2021-20...