Overview of the recovery plan for Europe

The recovery plan for the EU is worth €2.018 trillion (current prices) and consists of two parts: the multiannual financial framework for the years 2021 to 2027 (MFF), and the ‘Next Generation EU’ (NGEU) European recovery instrument for the years 2021 to 2023 (Figure 1). In both cases, the time frame concerns the period for making legal commitments giving rise to expenditure. While the MFF ensures financial predictability for investments and means to implement various EU policies in the medium and long term, the NGEU is a temporary, short-term instrument, addressing the consequences of and challenges posed by the Covid-19 pandemic.