NextGenerationEU is a “recovery instrument” designed to raise up to about €800 billion through bond issuance in the Capital Markets.
It is at the heart of the European Union (EU) response to the coronavirus crisis and has the ambition to support the economic recovery and build a greener, more digital and more resilient future.
The borrowing will be concentrated between mid-2021 and 2026, at an average of €150 billion per year. All borrowing will be repaid by 2058.
The centrepiece of NextGenerationEU is the Recovery and Resilience Facility – an instrument to offer grants and loans to support reforms and investments in the EU Member States with a total value of €723.8 billion in current prices.
- Part of the funds – up to €338 billion – will be provided in the form of grants.
- The other part – up to €385.8 billion – will provide Union loans to individual Member States.
- The loans will be repaid by the borrowing Member States. The grants will be repaid by the EU budget.
See the EU presentation of the NextGenerationEU strategy here – https://ec.europa.eu/info/strategy/eu-budget/eu-borrower-investor-relations/nextgenerationeu_en
See the factsheets here – https://ec.europa.eu/info/strategy/eu-budget/eu-borrower-investor-relations/factsheets_en