Designed as a temporary funding instrument of the European Union that can mobilise up to 723 billion euro (at 2022 prices) in grants and loans, the NGEU was established to encourage the completion of investments and structural reform measures. The ECB staff estimate that, the NGEU may increase the level of real GDP in the euro area by up to 1.5% by 2026 if fully implemented (The economic impact of Next Generation EU: a euro area perspective (europa.eu)). This makes quite a difference as it will lift growth prospects further.
The NGEU is a temporary funding instrument of the European Union designed to mobilise up to 723 billion euro in grants and loans to encourage investments and structural reform measures. If fully implemented, the NGEU could increase the real GDP in the euro area by up to 1.5 percentage points by 2026, significantly lifting growth prospects. As of now, two and a half years into the program, the Recovery and Resilience Facility (RRF) disbursements have reached 107 billion euro, which is more than 30% of the total expected to be requested by EU countries in the period 2021-2026.