The parliamentarians are expected to call for a significantly more ambitious long-term EU budget to match EU citizens' expectations in an increasingly complex global landscape. They are likely to argue that the current budget ceiling of 1% of the EU-27’s gross national income is insufficient to respond effectively to the growing range of crises and challenges.

The&nbsp;text&nbsp;prepared by the Budgets Committee highlights that the United States’ retreat from its global role means EU spending will now have to address Russia’s war of aggression against Ukraine, in addition to a highly challenging economic and social backdrop, a competitiveness gap, and the worsening climate and biodiversity crisis.

Parliament’s priorities for the next long-term EU budget are designed to feed into the Commission’s proposal on the next MFF, due to&nbsp;&nbsp;be unveiled in July.

The EU’s 2021-2027 long-term budget, together with the NextGenerationEU recovery instrument, amounts to €2.018 trillion in current prices (€1.8 trillion in 2018 prices).&nbsp;The package consists of the long-term budget, the 2021-2027 multiannual financial framework, made up of €1.211 trillion in current prices (€1.074 trillion in 2018 prices), combined with the temporary recovery instrument, NextGenerationEU, of €806.9 billion (€750 billion in 2018 prices).

EU Multiannual Financial Framework 2021-2027

This package contains the events between 1st July 2019 and 31 December 2020. For latest events, see related links.

There have been five multiannual financial frameworks (MFFs) to date. The Treaty of Lisbon transformed the MFF from an interinstitutional agreement into a legally binding act. Established for a period of at least five years, an MFF must ensure that the Union’s expenditure develops in an orderly manner and within the limits of its own resources, and sets out provisions with which the annual budget of the Union must comply, thus laying the cornerstone of financial discipline.

After almost five days of negotiations, the European Council finally reached a political agreement on the Multiannual Financial Framework (MFF) for 2021 to 2027 and a specific recovery instrument following the coronavirus crisis – Next Generation EU (NGEU) – together totalling €1 824.3 billion. Before the MFF can enter into force, the Parliament must give its consent, which is also a pre-condition for the adoption, by co-decision, of legislation on the new policy programmes.

EU Multiannual Financial Framework 2021-2027 and recovery plan (2019-2020)

The coronavirus crisis is a major shock for the European and global economies. Member States have already adopted budgetary, liquidity and policy measures to increase the capacity of their health systems and provide relief to those citizens and sectors that are particularly impacted.

Among the measures the EU is taking to support the economic recovery are the EU's recovery plan, Next Generation EU, SURE: temporary support for workers, amendments to the EU budget to address urgent issues, re-direction of EU funds to help member states most in need, support to most affected sectors.

On 21 July 2020, EU leaders agreed on a €750 billion recovery effort, Next Generation EU, to help the EU tackle the crisis caused by the pandemic. Alongside the recovery package, EU leaders agreed on a €1 074.3 billion long-term EU budget for 2021-2027. Among others, the budget will support investment in the digital and green transitions and resilience.

Together with the €540 billion of funds already in place for the three safety nets (for workers, for businesses and for member states), the overall EU's recovery package amounts to €2 364.3 billion (source: Council).

Coronavirus outbreak: impact on economic situation

The European Parliament together with the French Parliament organised&nbsp;a virtual European Parliamentary Week 2022 on 15-16 March 2022.&nbsp;The European Parliamentary Week consists of the European Semester Conference and the Interparliamentary Conference on Stability, Economic Coordination and Governance in the European Union.

This year the conference was dominated by the impact of the COVID-19 crisis on EU economies, its recovery and next steps. The parliamentarians will debated on the implementation of the national recovery and resilience plans as well as on the reform of the Stability and Growth Pact and the new own-resources.&nbsp;Roberta Metsola, EP President, opened&nbsp;the event which counts with several Prime Ministers and European Commissioners&nbsp;among the high-level speakers.

The Recovery and Resilience Facility (RRF) is intended to be the Union's main tool in support of economic and social recovery from the consequences of the coronavirus pandemic.&nbsp;The RRF entered into force on 19 February 2021 It will provide €672.5 billion in grants and loans as financial support over the coming years. The Facility is the flagship instrument of Next Generation EU and aims to offer large-scale financial support for public investment and reform, in order to mitigate the economic and social consequences of the pandemic in the Member States and to make EU economies more sustainable. The scope of application refers to policy areas related to economic, social and territorial cohesion, the green and digital transitions, health, competitiveness, resilience, productivity, education and skills, research and innovation, smart, sustainable and inclusive growth, jobs and investment, and the stability of the financial systems. In order to receive support through the Facility, Member States are required to produce recovery and resilience plans proposing a congruent set of reforms and public investment projects that could be implemented up until 2026. Currently 22 of the 26 submitted national recovery plans&nbsp;have been approved. The Commission has not yet approved the Hungarian, Polish, Swedish and Bulgarian plans. Requested pre-financing of €52.3 billion has already been disbursed to 17 Member States.

Recovery and resilience facility (RRF)

EU financed railway projects in Gävle, Sweden

Railway infrastructure upgrade Gävle-Åänge, Sweden - Recovery and Resilience (RFF)

EP Plenary session - short presentation : An intellectual property action plan to support the EU’s recovery and resilience

EP Plenary session -  Capital Markets Recovery Package: adjustments to the securitisation framework

EP Plenary session -  Good governance of national Recovery&Resilience Plans

Lex Signing ceremony on Recovery and Resilience Facility:  - Joint Press Conference by David SASSOLI, EP President, Antonio COSTA, Portuguese Prime Minister and by Ursula von der LEYEN, EC President, on behalf of the Presidency of the Council

Lex Signing ceremony on Recovery and Resilience Facility:  - Signature by David SASSOLI, EP President and by Antonio COSTA, Portuguese Prime Minister on behalf of the Council and in the presence of Ursula von der LEYEN, President of the EC

EP plenary session - Capital Markets Recovery Package: MIFID and EU Recovery Prospectus

EP plenary session- Establishing the Recovery and Resilience Facility

This infoclip shows the Ljubjana main train station and its ongoing renovation financed by the EU Recovery and Resilience Facility (RRF) that will increase the efficiency of rail transport for end users, especially by eliminating the existing bottleneck in Ljubljana. In particular, the renovation of the railway station in Ljubljana will increase the capacity for freight and passenger traffic in the wider city area with the aim of reducing the use of cars by daily migrants by enabling a 15-minute frequency of passenger trains in the Ljubljana area from all five directions in the morning and afternoon rush hours. The Recovery and Resilience Facility contributes EUR 214 million to the investment worth EUR 260 million in total. The works started in December 2023 and should be finalised by mid-2026.

Infoclip: Upgrade of the railway station - Recovery and Resilience Facility (RRF) - Ljubljana (Slovenia)

The "Energy Cells" is a project that consists of a system of four energy storage devices (batteries) with a total capacity of 200 megawatts (MW) and 200 megawatt-hours (MWh) into Lithuania’s energy system. Energy Cells has four 50 MW and 50 MWh energy storage facilities at transformer substations in Vilnius, Šiauliai, Alytus, and Utena. It is currently the largest project in the Baltics and one of the largest of its kind in Europe. Energy Cells received 87.6 million euros from the NextGenerationEU, the Recovery and Resilience Facility under the “New Generation Lithuania” plan for the installation of the energy storage system. The total value of the project, which will provide Lithuania with the instantaneous power reserve and the possibility to operate autonomously in isolated mode, is of 109 million euros.

Infoclip: Integrated system for batteries "Energy Cells" - Recovery and Resilience Facility (RRF) - Vilnius (Lithuania)

This infoclip shows the António Cruz Serra residence is located between several academies at the University of Lisbon, with close access to the University's central services. The residence has mixed occupancy, offering rooms of different types, which include access for reduced mobility. The residence has various study rooms for a large number of residents and several social and leisure spaces. Residents may also have access to areas at their disposal for preparing food, as well as washing and drying clothes. The total number of beds is 335. they are distributed in 145 single rooms, 90 double rooms, and 10 reduced mobility rooms. The student’s residence had financial support from the Next Generation EU (Recovery and Resilience Facility) with 10.232.575,00 €.

Infoclip: University Residence for students - Recovery and Resilience Facility (RRF) - Lisbon (Portugal)

The Digital Pact ("DigitalPakt") for Schools 2019-2024 builds on the strategy of the Standing Conference of the Ministers of Education and Cultural Affairs "Education in the Digital World". The whole funds for DigitalPakt were 6,5 billion euros (of the total amount the Recovery and Resilience Facility fund for digitalization of the education contributed for 1,435 billion euros). Berlin state received 256,9 million euros.The goal of of the project is to enabling pupils of all school levels and school types to develop basic skills for a confident handling of the digital world. In order to achieve this, investments are intended to improve the digital infrastructure as well as the technical equipment of schools and their administration. This infoclip shows the application of funds to the Immanuel-Kant-Gymnasium in Berlin, in particular 3D-printing of objects and design of the high-school logos on t-shirts.

Infoclip: Digital Pact for Schools - Recovery and Resilience Facility (RRF) - Berlin (Germany)

This infoclip shows the most important steps and moments of the Presidency of the European Commission of Ursula von der LEYEN (2019-2023). The footage, in particular, includes the election as a President and of the European Commission's college; Meetings with the Presidents of the EU institutions; her main interventions in debates on Next Generation EU legislation, Green Deal, EU vaccines campaign against Covid-19, the war of aggression of Russia against Ukraine, the Conference on the Future of Europe and previous State of the Union debates in Strasbourg.

Memoclip: Ursula von der LEYEN, President of the European Commission, and the European Parliament (2019-2023)

This infoclip shows the project "Quantum Austria" (funded with 107 million euros by the Recovery and Resilience Facility) aims to support excellent, transformative, and innovative basic research in the field of quantum physics, quantum computing, as well as next generation high performance computing to ensure continued competitiveness globally. The footage illustrate ongoing research projects: "Preqursor" which aim to perform machine learning on photonic platforms, and probing optical nonlinearities of material and "QuBELT" for the investigation of 2D materials (University of Vienna); "Quantum Klystron" and "Quantum Optics with Electron Photon Pairs" (Technical University of Vienna) which goal is respectively to employ a spatially modulated electron beam as method of manipulation of quantum systems, and to develop novel quantum technology for electron microscopy. License for using the footage: CC BY-NC-ND.

Infoclip: Projects for quantum research and technologies, "Quantum Austria" - Recovery and Resilience Facility (RRF) - Vienna (Austria)

The Recovery and Resilience Facility (RRF) is a temporary instrument that is the centrepiece of the NextGenerationEU, the EU’s plan to emerge stronger and more resilient from the current crisis. This program of interventions included in the Italian National RRF for the part under the Ministry of Education's responsibility. Thanks to a total investment of 17.59 billion schools have the opportunity to be able to really play that strategic educational role for the country's growth. It is at school that student accompanied in building competencies and acquiring skills, prepare for the future. This infoclip shows educational robotics, augmented reality and virtual reality, STEM/STEAM disciplines design thinking, modelling and craft 4.0, use of artificial intelligence in education, innovative teaching methodologies, solar-powered system and electrolysis of the last classroom, and pathway to study water cycle.

Infoclip: laboratories to enhance students' skills in Science, Technology, Engineering and Maths (STEM) – Recovery and Resilience Facility - Brindisi (Italy)

A delegation from the Budgetary Control Committee visit to the Hungarian Parliament and meeting with standing committees and with Ferenc BÍRÓ, Head of the Hungarian Integrity. The delegation from CONT Committee is in Budapest to assess ongoing issues with the protection of the EU budget in the country. MEPs visit to the Hungarian Parliament and meet with standing committees and with Ferenc BÍRÓ, Head of the Hungarian Integrity Authority.

Fact-finding mission of the Budgetary Control Committee to Budapest (Hungary): visit to the Hungarian Parliament and meeting with standing committees and with Ferenc BÍRÓ, Head of the Hungarian Integrity Authority

Recovery plan for Europe (T)

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