The resources borrowed under NGEU will be spent in the form of grants and loans through a package of programmes addressing different issues relating to the recovery and resilience of the EU economy and society. A small share (€83.1 billion, i.e. 10 %) will temporarily reinforce selected programmes under the 2021-2027 MFF. In other words, in the coming years, cohesion policy, rural development, and programmes such as Horizon Europe, InvestEU, rescEU, and the Just Transition Fund (JTF) will be partly financed and implemented under the MFF and partly under NGEU. The proportions of the NGEU and MFF component vary by programme. While the total NGEU allocation for Horizon Europe amounts to 6 %, in the JTF it is 56 %.
Similarly, funds from the EU borrowing operation under NGEU will reinforce MFF spending in the area of EU cohesion and rural development. REACT-EU (recovery assistance for cohesion and the territories of Europe), endowed with €50.62 billion (12.6 % of the total allocation for cohesion policy), will complement action under the two main cohesion policy funds – the European Regional Development Fund and the European Social Fund. The disbursement of this assistance has already started, and €26.3 billion had been allocated by 2 September 2021. The support dedicated to post-pandemic recovery for rural development amounts to €8.1 billion (8.5 % of the total allocation on rural development), and will be spent through the European Agricultural Fund for Rural Development.
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