Spain expects to receive €140 billion, €72 billion of which are non-repayable, from Next Generation EU, a recovery plan endowed with €750 billion approved by the European Council in the peak of the ‌Covid-19 pandemic.‌ ‌In‌ ‌this‌ ‌article‌ ‌we‌ outline how these funds will be structured. The European Parliament sued the European Commission -- the EU's executive arm -- on Friday for failing to punish member states who violate the "rule of law" within the bloc. Next Generation EU. NGEU has one of the most extensive Next Generation EU fund stimulus packages ever financed for a greener, more digital, more resilient Europe supporting the Recovery plan for Europe.. you will receive a digital identity (eID), making it easier to access online public services and giving you more control over your . The Next Generation EU is an envelope of €750 billion representing the largest stimulus package ever financed by the EU and is designed to boost the recovery of EU economy on the basis of two clear targets: 37% for green investments and reforms. Justice Minister Zbigniew Ziobro and his Solidarna Polska party have made it clear that they will oppose it. mocratic and pluralistic law-making process; legal cer tainty (4); prohibition of arbitrar iness of the executive powers (5); effective judicial protection, including access to justice, by independent and impar tial cour ts (6); and separation of powers, (7) be respected (8). Imposing conditionality on aid recipients may not be an . The Next Generation EU (NGEU), the EU's fiscal and policy response to the COVID-19 pandemic, could represent a 'Hamiltonian moment,' because it ties a (temporary) fiscal capacity for the EU to a common growth agenda (Celi, Guarascio, & Simonazzi, 2020).The NGEU - 360 billion euros in loans and 390 billion euros in grants - breaks with austerity policy, adopted in the . It would constitute a major step forward ahead of the physical EUCO meeting in Brussels on 17 and 18 July that will discuss the latest progress concerning the recovery fund and the MFF. In this article, we show that Next Generation EU (NGEU) is mainly a response to the economic and political imbalances left over from the Eurozone crisis. This is presumably why the argument has now taken on especial relevance. Next Generation EU. 4. Next Generation EU is a commonly agreed recovery plan of €750 billion between EU member states. The recovery plan turns the immense challenge we face into an opportunity, not only by supporting the recovery but also by investing in our future: the European Green Deal and digitization will boost jobs and . #2 - Next Generation EU Words of Europe Politics In this episode of "Words of Europe", researcher Rosalba Famà explains what measures were taken by the European Council and the European Commission to provide a much-needed stimulus for those European economies most heavily hit by the Covid-19 pandemic. Next Generation EU is a great opportunity for Europe and Italy as well. The next generation of EU own resources. On 16 December 2020, the EU adopted the "Regulation on a general . Next Generation EU: A recovery plan for Europe. 1 INTRODUCTION. Rule of law conditionality in the framework of the MMF 2021-2027 and Next Generation EU. The conditionality on grants and loans associated with the EU recovery plan would strengthen the EU's political . Table 2: Next Generation EU (€ billion) Next Generation EU Total (with MFF) Recovery and Resilience Facility (RRF) 672.5 673.3 ReactEU 47.5 47.5 Horizon Europe 5 84.9 InvestEU 5.6 9.4 Rural Development 7.5 85.4 Just Transition Funds (JTF) 10 17.5 RescEU 1.9 3.0 Source: European Commission (2020) "EU Next Long Term Budget & Next Generation . At the same time, it offers a unique opportunity for a new policy approach. In retrospect, 2020 might turn out as a significant year for the rule of law in the European Union. The Next Generation EU plan could add 1.5% to GDP under our low-impact scenario over the next five years and 4.1% under a high-impact scenario, where we made different assumptions about the timing of disbursements, the absorption of funds, and the size of growth multipliers from public spending. We demonstrate, using quantitative analysis, that pre-existing . EC proposes 750BN euro 'Next Generation EU' rescue plan. Protecting the EU budget. In mid-April, the European Heads of State agreed on a three-layer safety net totaling €540 billion or 3.9% of the EU's GDP. The Next Generation EU (NGEU) fund is a European Union economic recovery package to support member states adversely impacted by the COVID-19 pandemic.Agreed to by the European Council on 21 July 2020, the fund is worth €750 billion. "A regime of conditionality to protect the budget and Next Generation EU [the €750 billion recovery fund] will be introduced," the conclusions read. The Reinforced Conditionality Approach of the 2021-27 MFF . Author . That finally puts Europe on the map as the backer of a new risk-free asset in a world that up until now has only known only one: US Treasuries. Next Generation EU: The basics. They also stated that the effect of a breach of the principles of the rule of law on financial management must be 'sufficiently direct' and not generalised, as was the case in the European Commission proposal. Next Generation EU (NGEU) is the flagship EU crisis innovation response programme. The Italian Recovery and Resilience Plan translates this opportunity into action. For the first time, with the conditionality mechanism, disbursement of EU funds will be tied to respect for rule of law standards. In July, the leaders of the 27 member states of the European Union, meeting as the European Council, approved a €750 billion recovery plan, labeled Next Generation EU, and the Commission's proposed €1.074 trillion Multiannual Fiscal Framework, the EU's seven-year budget for 2021-27. Whether it does so remains to be seen. While the devil could lurk in the details, the bottom line is clear: the Next Generation EU plan will draw critical support from large-scale issuance of pan-European sovereign bonds. 'Conditionality' - key to some, outrageous to others. Abstract This article presents an analysis of why it was possible to reach an agreement on the Next Generation EU (NGEU), the EU's fiscal and policy response to the COVID-19 pandemic, since the dea. The Rule of Law Conditionality Regulation is a regulation of the European Union and Euratom, which allows the European Commission to adopt measures, including the suspension of payment of funds from the EU budget, to member states which violate the principles of rule of law enshrined in article 2 of the Treaty on European Union. Next Generation EU: Corona as a catalyst for climate plans and digitalisation Bonds issued by the European Union (EU); while it would have seemed inconceivable before the corona pandemic, the European Commission now plans to give the European economy the kick-start it needs. The Next Generation EU (NGEU) funding plan, which will distribute €750 billion (at 2018 prices, updated in August 2021 to €806.9bn at current prices) to assist recovery from the COVID-19 pandemic, will help to put the European Union on a path towards resilient economic growth. It is the first time in EU history that the allocation of funds is linked to the proper functioning of the law, a fact that was contested by Hungary and Poland, who already . The COVID-19 crisis has dealt a further blow to EU convergence. The EU is a community based on the rule of law. How has growth changed what countries get from the European recovery fund? Ursula von der Leyen - President of the European Commission. They also stated that the effect of a breach of the principles of the rule of law on financial management must be 'sufficiently direct' and not generalised, as was the case in the European Commission proposal. The result of the longest Council summit in decades (17-21 July 2020) has been a historical agreement on a recovery package to tackle the . Within this, the Next Generation EU fund is a . Adjustments to growth forecasts mean some countries will get 10% more than expected and others 20% less in grants from the EU Recovery and Resilience Facility. Next Generation EU: A Large Common Response to the COVID-19 Crisis In July 2020, the European Council agreed upon the Next Generation EU (NGEU) plan to support member states hardest hit by the COVID-19 crisis with a €750 billion fund to be fi nanced by new EU debt and to be added to the budget of the EU. Stefano Micossi (Former Director General of DG Industry) With Next Generation EU, the new 750 billion euro emergency recovery instrument proposed by the European Commission, the European common economic policies are shifting gear and moving decisively into the domain of fiscal union. For some it constitutes a fundamental step towards a federal union. Independent national and EU courts make sure rules and regulations are respected and implemented. Autores: Alicia Hinarejos Localización: European law review, ISSN 0307-5400, Nº 4, 2020, págs. . This is why the LSE European Institute hosted a panel event aimed at bringing together experts from a wide array of experiences to explore the design and implementation of the NGEU, weighing the positives against the negatives. An Evolutionary Explanation of the Next Generation EU Plan. And perhaps it is just as interesting to look at what . As Member States start to ease restrictions linked to the COVID-19 pandemic on citizens and businesses, EU leaders and institutions have turned their attention towards the medium-term recovery of their economies. The "Next Generation EU" recovery plan is the second part of the EU's response to the pandemic. There are, of course, some obstacles in the way and these obstacles are . 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