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NextGenerationEU: Commission carries out €800 million of first payments to foster crisis repair and resilience

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The Commission has disbursed €800 million in grants under NextGenerationEU, the temporary instrument to finance Europe's recovery and foster a greener, more digital and resilient economy after the pandemic.

The payments made today are going to 41 national and regional programmes in 16 Member States (France, Greece, Czechia, Germany, Poland, Lithuania, the Netherlands, Slovakia, Estonia Austria, Denmark, Finland, Bulgaria, Sweden, Portugal and Croatia) from the Recovery Assistance for Cohesion and the Territories of Europe initiative (REACT-EU), the initiative which helps member states finance crisis response and recovery measures following the coronavirus pandemic. The funds under the REACT-EU constitute additional resources for existing Cohesion policy programmes.

The measures under REACT-EU will bridge the gap between the emergency response and long-term investments by strengthening the resilience of healthcare systems, preserving and creating employment, in particular for young people, supporting the most vulnerable in our society, and providing working capital and investment support for small and medium-sized enterprises.

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REACT-EU finances targeted measures for the green and digital transitions to quickly address the negative consequences of the outbreak, for example, through investments in energy efficiency, urban greening and digitalisation.

The disbursement follows the successful implementation of the first borrowing operation under NextGenerationEU. The €20 billion 10-year bond was the largest-ever institutional bond issuance in Europe and the largest amount the EU has raised in a single transaction. By the end of this year, the Commission intends to raise some €80bn in long-term funding, to be complemented by short-term EU-Bills.

Cohesion and Reforms Commissioner Elisa Ferreira said: "I am glad that Cohesion policy remains at the forefront of crisis response and recovery. REACT-EU was the first NextGenerationEU Instrument to be finalised, its programmes were the first ones to be adopted and it is now the first channelling support to our economy, businesses and workers. REACT-EU brings much needed additional investment firepower to existing Cohesion policy programmes to further stimulate a robust, fair and cohesive recovery.”

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Budget and Administration Commissioner Johannes Hahn added: “I am very happy that we succeeded to kick-start the NextGenerationEU issuances as scheduled. As of today money under NextGenerationEU is already used via REACT-EU to help our regions and cities recover from the pandemic and build a greener, more digital and more resilient Europe.”

Reaching the real economy

The additional funds will be primarily channelled through the European Regional Development Fund (ERDF) and the European Social Fund (ESF), including the Youth Employment Initiative (YEI). Some of the new resources will also be used to top-up the European Fund for Aid to the Most Deprived (FEAD) for the 2014-2020 period.

To provide the maximum possible assistance to the member states, the conditions for the use of these additional resources have been simplified:

  • National co-financing is not obligatory - that means that the EU can cover 100% of the cost if Member States deem it necessary.
  • Immediate liquidity in the form of an 11% pre-financing will help to ensure a quick roll-out of this support, preventing any bottlenecks.
  • There is no ex-ante conditionality, nor any requirements for thematic concentration or allocation by category of region. The scope of support is wide and transfers between ERDF and ESF are possible.
  • Projects dating back to 1 February 2020 can be retroactively reimbursed.

Ensuring transparency and accountability

To coincide with these first payments, a new REACT-EU dashboard has been launched on the Commission's Cohesion Open Data Platform, to provide up to date information on the use of the REACT-EU resources across the EU. Cross-cutting themes such as green, digital and specific measures for climate adaptation are highlighted, in addition to data on specific investment areas by fund. The dashboard was put in place to facilitate access to public data and to ensure transparency and accountability.

Background

NextGenerationEU is a temporary recovery instrument of some €800 billion in current prices to support Europe's recovery from the coronavirus pandemic and help build a greener, more digital and more resilient Europe. To finance NextGenerationEU, the European Commission – on behalf of the EU – will raise from the capital markets up to around €800 billion between now and end-2026: €407.5 billion for grants (under RRF, REACT-EU and other EU budget programmes); €386 billion for loans. This will translate into borrowing volumes of an average of roughly €150 billion per year.

REACT-EU is part of NextGenerationEU and provides €50.6bn additional funding (in current prices) over the course of 2021 and 2022 to Cohesion policy programmes. Measures focus on supporting labour market resilience, jobs, SMEs and low-income families, as well as setting future-proof foundations for the green and digital transitions and a sustainable socio-economic recovery.

More information

REACT-EU: Fostering crisis repair and resilience on the Open Data Platform

Recovery plan for Europe

Press release: First issuance under NGEU

Press release Commission's first funding plan

Q&A diversified funding strategy

Factsheet - NextGenerationEU - Funding strategy

EU as a borrower website

Primary Dealer Network

@ElisaFerreiraEC

@JHahnEU

@EUinmyRegion     @EU_Social

European Commission

NextGenerationEU: European Commission disburses €231 million in pre-financing to Slovenia

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The European Commission has disbursed €231 million to Slovenia in pre-financing, equivalent to 13% of the country's grant allocation under the Recovery and Resilience Facility (RRF). The pre-financing payment will help to kick-start the implementation of the crucial investment and reform measures outlined in Slovenia's recovery and resilience plan. The Commission will authorise further disbursements based on the implementation of the investments and reforms outlined in Slovenia's recovery and resilience plan.

The country is set to receive €2.5 billion in total, consisting of €1.8bn in grants and €705m in loans, over the lifetime of its plan. Today's disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of €80 billion in long-term funding, to be complemented by short-term EU-Bills, to fund the first planned disbursements to member states under NextGenerationEU.

The RRF is at the heart of NextGenerationEU which will provide €800bn (in current prices) to support investments and reforms across member states. The Slovenian plan is part of the unprecedented EU response to emerge stronger from the COVID-19 crisis, fostering the green and digital transitions and strengthening resilience and cohesion in our societies. A press release is available online.

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Cyprus

NextGenerationEU: European Commission disburses €157 million in pre-financing to Cyprus

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The European Commission has disbursed €157 million to Cyprus in pre-financing, equivalent to 13% of the country's financial allocation under the Recovery and Resilience Facility (RRF). The pre-financing payment will help to kick-start the implementation of the crucial investment and reform measures outlined in Cyprus' recovery and resilience plan. The Commission will authorise further disbursements based on the implementation of the investments and reforms outlined in Cyprus' recovery and resilience plan.

The country is set to receive €1.2 billion in total over the lifetime of its plan, with €1 billion provided in grants and €200m in loans. Today's disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of €80bn in long-term funding, to be complemented by short-term EU-Bills, to fund the first planned disbursements to member states under NextGenerationEU. Part of NextGenerationEU, the RRF will provide €723.8bn (in current prices) to support investments and reforms across member states.

The Cypriot plan is part of the unprecedented EU response to emerge stronger from the COVID-19 crisis, fostering the green and digital transitions and strengthening resilience and cohesion in our societies. A press release is available online.

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European Commission

NextGenerationEU: European Commission disburses €2.25 billion in pre-financing to Germany

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The European Commission has disbursed €2.25 billion to Germany in pre-financing, equivalent to 9% of the country's financial allocation under the Recovery and Resilience Facility (RRF). This corresponds to the pre-financing amount requested by Germany in its recovery and resilience plan. The pre-financing payment will help kick-start the implementation of the crucial investment and reform measures outlined in Germany's recovery and resilience plan. The Commission will authorise further disbursements based on the implementation of the investments and reforms outlined in Germany's recovery and resilience plan.

The country is set to receive €25.6bn in total, fully consisting of grants, over the lifetime of its plan. The disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of €80bn in long-term funding, to be complemented by short-term EU-Bills, to fund the first planned disbursements to member states under NextGenerationEU. Part of NextGenerationEU, the RRF will provide €723.8bn (in current prices) to support investments and reforms across member states. The German plan is part of the unprecedented EU response to emerge stronger from the COVID-19 crisis, fostering the green and digital transitions and strengthening resilience and cohesion in our societies. A full press release is available here.

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