The €750 billion recovery plan “Next Generation EU” adopted by EU leaders last July is today at the hearth of difficult negotiations between the European Council and the European Parliament, which hinder the possibility of its rapid implementation. Neither the European summit held on 15th and 16th October nor the 10th meeting the Council, the European Parliament and the Commission did allow to reach a compromise on this plan or on the Multiannual financial framework (MFF) for the period 2021-2027 in which it is included. Negotiations are still underway.
The package including the MFF and Next Generation EU was agreed by EU leaders to reach the total amount of €1824.3 billion, with the aim of supporting European economy in the context of the COVID-19 pandemic, but also to back investments in the green transition: 30% of total funds from this package should target transition-related projects. But the European Parliament is also asking for an increase of €39 billion in the budget of 15 flagship programs, proposition to which the European Council is reluctant.
Such flagship programs include notably the Just Transition Fund or the InvestEU scheme. As for now, the Just Transition fund is planned to be equipped with €40 billion to support European member states in green transition, among which €10 billion should come directly from the European budget and €30 billion from Next Generation EU. The objective of this fund is to support the green reconversion of EU territories, including the backing of investments in Small and Medium enterprises (SMEs), research and innovation or clean energy. Moreover, a part of the InvestEU scheme corresponding to €1.8 billion will also be dedicated to support investments in the green transition, through notably energy infrastructures or decarbonization projects.
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