MFF_EUCO-01

The total volume of the EU recovery instrument is kept at €750 billion, but the mix of grants (€390 billion, down from €500 billion in the proposal) and loans (€360 billion, up from €250 billion) changes. The time available for commitments is shortened by one year (2021-2023 instead of 2021-2024). While the resources for the Recovery and Resilience Facility (RRF) increase further, the cuts to the grant component reduce reinforcements that NGEU was planned to provide to various EU budgetary instruments (e.g. Horizon Europe and Just Transition Fund) or eliminate such top-ups altogether (e.g. Health programme, development and humanitarian aid). The idea of a Solvency Support Instrument is dropped. The bridging solution to finance some action in 2020 already, through an amendment of the current MFF is dropped, but the RRF and REACT-EU should be able to finance retroactively eligible measures launched as of February 2020. In 2023, the allocation key for the RRF will take account of new data on the impact of the pandemic.