On 23 April 2020, the European Council decided to work towards establishing a recovery fund to respond to the COVID-19 crisis. Leaders tasked the European Commission with putting forward a proposal urgently, and also clarifying the link between the recovery fund and the EU’s long term budget.
The socio-economic fallout from the COVID-19 crisis requires a joint and innovative effort at EU level in order to support the recovery and resilience of the member states’ economies. To achieve the desired result and be sustainable, the recovery effort should be linked to the traditional MFF, which has shaped EU budgetary policies since 1988 and offers a long-term perspective.
EU leaders have agreed to a comprehensive package of €1 824.3 billion which combines the Multiannual Financial Framework (MFF) and an extraordinary recovery effort under the Next Generation EU (NGEU) instrument.
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