EU’s next long-term budget & NextGenerationEU : key facts and figures.
Date: 2020-11-11
Institutions: Directorate-General for Budget
Subjects: EU Member State, EU budget, EU financing, EU strategy, European Commission, European Parliament, long-term forecast, multiannual financial framework, own resources, public expenditure

EU’S NEXT LONG-TERM BUDGET 
& NextGenerationEU:  
KEY FACTS AND FIGURES 

#EUbudget #EUSolidarity #StrongerTogether

11 November 2020

“I welcome today’s agreement on our Recovery Plan and the next Multiannual Financial 
Framework. We now need to move forward with finalising the agreement on the next 
long-term budget and NextGenerationEU by the end of the year. Help is needed for 
citizens and business badly hit by the coronavirus crisis. Our recovery plan will help us 
turn the challenge of the pandemic into an opportunity for a recovery led by the green 
and digital transition”.

European Commission President Ursula von der Leyen

On 10 November 2020, the European Parliament and EU Member States in the Council, with the support 
of the European Commission, reached an agreement on the largest package ever financed through the EU 
budget, of €1.8 trillion. Following the coronavirus crisis and its consequences, the package will help rebuild 
a greener, more digital and more resilient Europe, which is better fit for current and forthcoming challenges. 

Key figures in the agreement:

•  Long-term budget for 2021-2027 of €1.074 trillion combined with the temporary recovery instrument, 

NextGenerationEU, of €750 billion;

•  More than 50% of the amount will support modernisation through policies that include research 
and innovation, via Horizon Europe; fair climate and digital transitions, via the Just Transition Fund 
and the Digital Europe programme; preparedness, recovery and resilience, via the Recovery and 
Resilience Facility, rescEU and a new health programme, EU4Health;

•  Traditional policies such as cohesion and common agricultural policy will be modernised and will continue 
to receive significant EU budget funds, with the objective to support the green and digital transitions; 

•  30% of the EU funds, under both NextGenerationEU and MFF, will be spent to fight climate change. The 

package also pays a specific attention to biodiversity protection and gender mainstreaming;

•  Key programmes, including Erasmus+, EU4Health and Horizon Europe, will be reinforced compared 

to the agreement at the July 2020 special European Council, by a total of €15 billion.

 
New own resources

The agreement contains a clear roadmap towards new own resources, which would help 
repay the borrowing under NextGenerationEU:

•  Carbon border adjustment mechanism and a digital levy: to be proposed by June 

2021, with a view to their introduction at the latest by 1 January 2023.

•  A new own resource based on the Emissions Trading System: to be proposed by June 2021.

•  Further new own resources, to be proposed by June 2024: could include a Financial Transaction 
Tax, a financial contribution linked to the corporate sector or a new common corporate tax base.

Rule of law

Flexibility

For  the  first  time,  the  EU  will  have  a  specific 
mechanism to protect its budget against breaches 
to the rule of law. Final beneficiaries of EU funding in 
the Member State concerned will not be negatively 
affected by this mechanism.

The  budget  will  have 
increased  flexibility 
mechanisms  to  make  it  fit  not  only  for  today’s 
realities but also for tomorrow’s uncertainties. 

“Today’s  agreement  will  allow  to  reinforce  specific  programmes  under  the  long-term 
budget for 2021-2027 (including Horizon Europe, Erasmus+, EU4Health). All in all, the 
EU long-term budget together with NextGenerationEU will amount to more than €1.8 
trillion. It will play an essential role to support the recovery and make sure traditional 
beneficiaries of EU funds receive the sufficient means to continue their work during 
these very challenging times for all”.

Johannes Hahn, European Commissioner for Budget and Administration

1NextGenerationEU

To  finance  NextGenerationEU,  the  Commission  will  borrow  on  the  markets.  The  funds  raised  will  go  to 
specific programmes and will be spent in a limited period of time in order to kick-start the recovery. 

Grants

of which provisioning  
 for guarantees

Loans

€

TOTAL

390.0

5.6

360.0

750.0

Recovery and Resilience Facility

672.5

673.3

NGEU

Total 
with MFF

      Of which GRANTS

      Of which LOANS

€

REACT-EU

Rural development

Just Transition Fund

InvestEU

rescEU

Horizon Europe

312.5

360.0

47.5

7.5

10.0

5.6

1.9

5.0

313.3

360.0

47.5

85.4

17.5

9.4

3.0

84.9

All amounts in EUR billion Source: European Commission.2Long-term budget 2021-2027

The long-term EU budget will continue to play a key role to support the recovery and make sure traditional 
beneficiaries of EU funds receive the sufficient means to continue their work during very challenging times 
for all. 

MFF 2021-2027 total allocations per heading

MFF

NEXT  
GENERATION EU

1. Single Market, Innovation and Digital

2. Cohesion, Resilience and Values 

3. Natural Resources and Environment

4. Migration and Border Management

5. Security and Defence

6. Neighbourhood and the World

7. European Public Administration

132.8

377.8

356.4

22.7

13.2

98.4

73.1

10.6

721.9 

17.5 

-   

- 

-

-   

TOTAL

143.4

1 099.7 

373.9 

22.7

13.2

98.4

73.1

TOTAL MFF

1 074.3

750.0

1 824.3

Within the long-term budget 2021-2027, ten programmes received top-ups compared to the European 
Council agreement from 21 July 2020. 

 Horizon Europe

 €79.9bn 

 InvestEU Fund

 €3.8bn 

+ €1bn

 EU4Health

 €5.07bn 

+ €3.4bn

 Erasmus+

 €23.4bn 

+ €2.2bn

 Creative Europe

 €2.2bn 

+ €0.6bn

 Rights and Values

 €1.6bn 

+ €0.8bn

 Integrated Border Management Fund

 €6.5bn 

+ €1bn

 European Border and Coast Guard
 Neighbourhood, Development and
International Cooperation Instrument

 €5.6bn 

+ €0.5bn

 €71.8bn 

 Humanitarian Aid

 €10.2bn 

+ €0.5bn

+ €4bn

+ €1bn

TOTAL

0
0

10
10000

20
20000

30
30000

40
40000

EUCO Agreement - MFF 2021-2027

Change vs EUCO

50
50000

////

60
60000

70
70000

80
80000

TOTAL: MFF 2021-2027

PrintKV-06-20-224-EN-CISBN 978-92-76-28079-8doi:10.2761/042463PDFKV-06-20-224-EN-NISBN 978-92-76-28084-2doi:10.2761/92737© European Union, 2020Reuse of this document is allowed, provided appropriate credit is given and any changes are indicated (Creative Commons Attribution 4.0 International license). For any use or reproduction of elements that are not owned by the EU, permission may need to be sought directly from the respective right holders.All images © European Union, unless otherwise stated. Icons © Flaticon – all rights reserved.All amounts in EUR billion. Source: European Commission.//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////All amounts in EUR billion, 2018 prices. Source: European Commission.