The ambitious € 1.85 trillion recovery plan consists a historic moment for the European Union
Coronavirus has caused an unprecedented crisis across Europe and the world, with a huge impact on our healthcare and welfare systems, societies, economies and everyday lives.
Despite the numerous challenges that everyone faces, the time has come for Europe to stand back on its feet, move forward and overcome this crisis by investing in our common priorities and preparing better conditions for the future generations. In this frame, the European Commission has introduced Next Generation EU to assist the stimulation of our economy.
PM² can help bringing Europe out of the crisis. One Project at a time!
The recovery may take long, but our needs are urgent and the only way to achieve our goals is to work all together towards them. According to the green group Transport & Environment (T&E), this plan could lead to a green, healthy and just recovery.
The money for Next Generation EU will be raised through the temporary lift of the own resources ceiling to 2% of EU Gross National Income. This way, the Commission will be able to take advantage of its particularly strong credit rating in order to borrow €750 billion on the financial markets for Next Generation EU. In addition to this, the Commission is proposing an updated EU budget up to some €1 100 billion between 2021-2027.
The total amount of money that will be raised through Next Generation EU and the new EU budget will be allocated through EU programmes. Consequently, every euro of investment will be used to help Europe recover, speed up the green and digital transitions and form a more fair and flexible society. Besides that, there is full transparency and democratic accountability both for the European Parliament and Council. The money will be invested in the frame of three pillars, through €500 billion in grants and €250 billion in loans to Member States.
"The European Commission's PM² Project Management Methodology can offer significant value to the management of the recovery initiatives both at the the Member States and the EU levels."
The first pillar aims to provide support to Member States for investments and reforms in order to address the crisis, the second pillar seeks to kick-start the EU economy by boosting private investment, while the third pillar refers to lessons learned by the crisis.
Apart from those three pillars, the Commission has also suggested the reinforcement of some other programmes in the EU budget, compared to the discussion that took place at the European Council in February.
Regarding the policy fundamentals of the Next Generation EU, the EU is focusing on the European Green Deal as EU’s growth strategy, on the development of a deeper and more digital single market, as well as on a fair and inclusive recovery.
About the PM² Alliance
PM² Alliance is an international, not-for-profit organisation with a broad membership across the Member States of the EU. Founded by PM² practitioners, the Alliance brings together individuals from institutions, companies and academia to inspire dialogue, share resources, and address the field’s challenges while promoting the wider adoption of the PM² Methodology. As the world’s only society of its kind, the Alliance strengthens the community’s collective voice through strong leadership, promotion of the highest standards, and recognition of professional excellence.
See also:
- Recovery Plan Communication: Europe’s moment: Repair and Prepare for the Next Generation
- EU Budget Communication: The EU budget powering the recovery plan for Europe
- Q&A: Next Generation EU – Legal Construction
- Questions and Answers on the MFF and Next Generation EU
- The EU Budget powering the Recovery Plan for Europe
- Speech by President von der Leyen at the European Parliament Plenary on the EU Recovery package
- What is PM²
- Why PM²
- PM² Methodology for EU funded projects
- PM² Methodology for International Cooperation and Development
