section_path: Overall economic contraction/Economic recovery programmes/Post-Pandemic Impact
section_name: Post-Pandemic Impact
paragraph_text: Post-Pandemic Impact
  
  By maintaining low borrowing costs, it supported fiscal policies aimed at addressing the crisis's long-term effects. However, challenges emerged, including balancing inflationary pressures and addressing disparities in recovery rates across member states. Analysts have noted that while the program provided significant short-term relief, its long-term impact on structural economic issues remains uncertain.
  
  Next Generation EU (NGEU)
  
  The Next Generation EU (NGEU) is a €750 billion economic recovery plan launched by the European Union in July 2020 in response to the economic challenges posed by the COVID-19 pandemic. It aimed to mitigate the pandemic's immediate economic impacts and lay the groundwork for long-term recovery through investments in green energy, digital transformation, public health, and economic resilience. The program marked a significant moment in EU history, as it was the first large-scale recovery initiative financed through joint borrowing by member states, signaling deeper fiscal integration within the union.
  
  Components of the NGEU included:
  
  By mid-2022, the European Commission had approved most member states' plans, disbursing billions in grants and loans. The NGEU played a significant role in stabilizing the European economy during the pandemic by supporting investments in clean energy, digital infrastructure, and workforce upskilling. Italy, for example, focused on energy efficiency and broadband expansion, while Spain prioritized renewable energy and social inclusion projects.
  
  The NGEU is credited with bolstering economic growth in the EU post-pandemic. Analysts estimate that the initiative added between 1-2 percentage points to GDP growth in member states during its peak implementation phase (2021–2023). Additionally, the program contributed to long-term stability by addressing structural issues such as regional inequalities and fostering cross-border cooperation on sustainability goals.
  
  As of 2024, the NGEU remains active, with funding allocated through the EU's Multiannual Financial Framework (MFF) for 2021–2027. The Recovery and Resilience Facility continues to oversee the implementation of member states' projects, though its disbursements are now primarily focused on monitoring progress and ensuring compliance with pre-approved plans. The program has become a model for potential future EU-wide fiscal policies. It is noted that Next Generation EU will focus spending on development of sustainable energies and technologies continuing through the end of the program in 2027.