The recovery plan for Europe builds on the considerable progress already made in view of supporting the economy to repair the immediate economic and social damage brought by the coronavirus pandemic. Following the agenda to turn the immense challenge into an opportunity, the European Union not only supports the recovery but also develops plans to invest in the future of European citizens. Particularly, the European Green Deal and digitalisation will boost jobs and growth, the resilience of our societies as well as the health of our environment.
To mobilise the necessary investments, the proposed reinforced budget is put forward in a two-fold response, namely as Next generation EU and the Multiannual financial framework.
The exceptional and temporary Next generation EU with €750 billion will boost the EU budget with new financing raised on the financial markets for 2021-2024; by investing in a green, digital and resilient Europe, the three-pillar approach will particularly target issues to support member states to recover, to kick-start the economy and helping private investments and to learn lessons from the crisis. In this way, the EU will provide a forceful support to its member states without putting additional pressure on their national budgets at the time when they are most strained.
The proposal for long-term budget of the European Union for its multiannual financial framework 2021-2027 has been put forward by the European Commission on May 2018. However, in light of the need to respond to the unforeseen COVID-19 crisis, the Commission was called to present a revised proposal that was adopted in May 2020. And on 21 July 2020, the EU leaders have reached a historic agreement on the next reinforced long-term budget, proposing €1 100 billion to facilitate rapid development in innovation, the economy, the environment and geopolitics.
Both initiatives together will bring the total financial firepower of the EU budget to €1.85 trillion.