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NextGenerationEU funding and the future of Europe

A unique opportunity for growth

The huge Next Generation EU (NGEU) funding programme for the development of Europe after the COVID-19 pandemic is now under way and is being supplemented by local and private investments. The programme will distribute over €800 billion of which Malta is planned to receive €300 million which will support the post-COVID economic and social revamp and trigger a greener transition that's more digital and better prepared for challenges now and in the future.

NextGeneration EU (NGEU) is one of the largest stimulus packages ever financed. It is made up of European Union funds, totalling €806* billion. This allocation of funds has been designed to enable the EU member states in response to the pandemic to build a greener, more digital, more resilient Europe.

These funds can be made available by member states over the period 2021-2026, with the vast majority (70%) to be disbursed within 2021 and 2022.

This report looks at the nature and aims of the NGEU programme and compares them with the expectations of citizens in the EU (and Europe more broadly), based on a survey of 4,500 respondents in seven EU countries and the UK. It makes a detailed assessment of the likely direction of change that will occur in building the Europe of tomorrow.

*In 2021 prices

Three Pillars for Europe’s future

The Next Generation EU stimulus package will help enable collaboration and joint commitment within the member states by providing the necessary EU business funding. This will revitalise their economies and lay the foundations for a more digital-friendly, greener, and inclusive Europe that will help them face future challenges with a greater sense of unity.

 

A significant portion of the Next Generation EU funding will be allocated to sustain a digitally focused growth strategy. It can increase its equitability by introducing innovations that enhance citizens' welfare and support economic resilience.

EU priorities mainly centre on:

  • Building a real data-driven economy as a catalyst for innovation and job creation
  • Supporting improved connectivity and deploying cutting edge and resilient digital infrastructures (e.g. 5G)
  • Enhancing the digitalisation and innovation of Public Administration (including judicial and healthcare system)
  • Favouring the digital transition of enterprises
  • Improving capabilities in crucial sectors leveraging digital capabilities (e.g. AI, cloud and cybersecurity)
  • Adapting the education systems to support digital skills and facilitating reskill and upskill.

Only 4 out of 10 citizens are satisfied with the level of digitalisation in their country.

Next Generation EU funding and the future of Europe: A unique opportunity for growth, Deloitte, November 2021

 

The EU has developed a new strategy to address climate and environmental challenges that will help a transition to a modern, competitive, and resource-efficient economic model.

It involves separating economic growth from resource use and net greenhouse gas emissions no longer generated.

NGEU will play a key role in making Europe the first climate-neutral continent within 2050 by:

  • Investing in future-proof clean technologies
  • Improving energy efficiency of public and private buildings
  • Promoting sustainable, accessible, and smart public and private transportation
  • Enabling a more circular economy
  • Supporting the transition towards renewable energy sources

36% of citizens within the NGEU perimeter would like to live in a country that invests more in innovation to achieve sustainability goals.

Next Generation EU funding and the future of Europe: A unique opportunity for growth, Deloitte, November 2021

 

The Europe of tomorrow will reduce any social inequality and disparity to create a more unified model. NGEU will support medium-term investments and reforms promoting social resilience in EU member states, as well as aiming to reduce social disparity by implementing the following:

  • Ensuring a homogeneous level of services to all EU citizens
  • Improving labour policies
  • Modernising labour market systems
  • Supporting social inclusion and reducing social gaps
  • Investing in modern social and educational infrastructures

1 in 2 citizens would like to see a greater emphasis on education, training and research in the post-COVID future.

Next Generation EU funding and the future of Europe: A unique opportunity for growth, Deloitte, November 2021

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