MFF and EU recovery fund given green light

The Multiannual Financial Framework (MFF) and the EU’s Recovery Plan for Europe – dubbed NextGeneration EU – have finally been given the green light by the European Council after Poland and Hungary withdrew their vetoes yesterday (Thursday, December 10).

The news means that €1.8 trillion can now be released to help kickstart EU states hit hard by Covid-19, according to EU politicians who have welcomed the news.

Reacting to the news yesterday, President of the European Council Charles Michel said: “Now we can start with the implementation and build back our economies.

“Our landmark recovery package will drive forward our green and digital transitions,” the president added.

The EU’s long-term budget, coupled with the NextGenerationEU initiative, which is a temporary instrument designed to boost the recovery, will be the largest stimulus package ever financed through the EU budget.

A total of €1.8 trillion will help rebuild a post-Covid-19 Europe. It will be a greener, more digital and more resilient Europe, the EU says.

The new long-term budget will increase flexibility mechanisms to guarantee it has the capacity to address unforeseen needs. It is a budget fit not only for today’s realities but also for tomorrow’s uncertainties.

On 10 November 2020, an agreement was reached between the European Parliament and EU countries in the Council on the next long-term EU budget and NextGenerationEU.

This agreement will reinforce specific programmes under the long-term budget for 2021-2027 by a total of €15 billion.