The EU long-term budget 2021-2027 together with NextGenerationEU, the recovery instrument, form the largest stimulus package ever financed through the EU budget, of €1.8 trillion.
It was agreed following a negotiations process. The process started with a Commission proposal in May 2018. After the coronavirus pandemic hit Europe, a second proposal followed in May 2020, to make sure the budget can better support Europe’s recovery. This second proposal also included NextGenerationEU.
In July 2020, after negotiations which lasted for four days and nights, the EU heads of state or government endorsed the next long-term budget and NextGenerationEU. On 10 November 2020, the agreement was sealed also with the European Parliament.
The last step of the process took place on 17 December 2020, with a final adoption of the 2021-2027 package by the Council of the European Union.
Following this process, and after all additional relevant rules and regulation have been adopted or ratified, people across the EU and beyond can apply for funding as of 1 January 2021.
* Size of 2021-2027 long-term budget and Next Generation EU as per the July 2020 European Council compromise.
The EU budget is not and has never been about giving and taking. Everybody is a winner from being part of the single market, addressing the challenge of migration and fighting terrorism and climate change together.
For this particular budget, every Member State will win extra resources to finance its economic and social recovery following the Covid-19 crisis.
Nevertheless, for some programmes country-by-country envelopes exist.
Commission Proposal May 2020
In May 2020, the Commission has proposed a powerful, modern and revamped long-term EU budget boosted by Next Generation EU, an emergency temporary recovery instrument, to help repair the immediate economic and social damage brought by the coronavirus pandemic, kickstart the recovery and prepare for a better future for the next generation.
This proposal builds on the 2018 Commission’s proposal and on the considerable progress that has already been made in the European Parliament and the Council. To ensure an effective implementation of the Recovery Plan, which reaches out to everybody in the EU and to our global partners, the Commission is mobilising a variety of instruments, organised around three pillars.
The proposed EU budget will power a fair socio-economic recovery, repair and revitalise the Single Market, guarantee a level playing field, and support the urgent investments – in particular in the green and digital transitions – which hold the key to Europe’s future prosperity and resilience.
Unprecedented investments to restore and rebuild Europe
Commission Proposal May 2018
For more information on the Commission's proposal adopted in May 2018, see: