The implementation of the NextGenerationEU development instrument is progressing.

UM – 07/2021

On July 13, 2021, the EC gave the go-ahead for twelve development and resilience plans, which include the German development and resilience plan (only in German language). This justifies the 25.6 billion euros that Germany received following the coronavirus pandemic. The aim is to attract investment in projects and reforms to force member states to change over to more sustainable, social and digital economies. So far, 25 member states have submitted their plans and 16 have already been approved by the EC. 

Payment will follow implementation

In total, the European development and resilience facility totals 672.5 billion euros. It forms the core of the NextGenerationEU development instrument that totals 750 billion euros. The money will be raised on the capital markets through EU bonds. The non-repayable grants will amount to 312.5 billion euros, with the remainder being granted in the form of loans. As of mid-July, the EU has already generated 45 billion euros through three bond issues. Germany can now conclude a grant and loan agreement with the EC to pre-finance its projects that amount to 2.3 billion euros. The payment of further funds will depend on the agreed measures being implemented.  

Focus: social participation

The German development and resilience plan focuses on six areas. One area of focus is "strengthening social participation". A core measure here is the so-called "social guarantee", according to which social security contributions must never exceed a total of 40 per cent in 2021 in order to relieve the burden on the labour factor. Financial resources will also be made available from the EU for developing the childcare infrastructure. 34.5 million euros have been earmarked for developing a digital pension overview that will integrate pension products from all three pillars of old-age provision. A total of 4.5 per cent of European funding now goes to the social sector.

Focus: pandemic-resilient healthcare

Another area of focus is "strengthening a pandemic-resilient healthcare system". This takes up 16.3 per cent of the available funds, almost as much as the largest block in the German development plan, i.e. promoting climate-friendly mobility (19.4 per cent). On the one hand, the health priority includes human, digital and technical strengthening of the public health service that amounts to 813 million euros. On the other, a future programme for hospitals has been launched to promote investment in modern emergency capacities and the digital infrastructures in German hospitals. As this totals three billion euros, it is the largest single measure in the German development plan alongside digitising the administration processes. 750 million euros have also been earmarked for supporting research and development of vaccines against SARS-CoV-2. This means that the German development and resilience plan will also contribute to the urgent battle against the coronavirus pandemic.