This is lesson 26 of the second module of the EUPress Teacher Training, which covers the macro topic ‘The EU’s Common Response to Covid-19’.
This lesson provides general information about the EU’s structural reform plans.
While the Recovery and Resilience Facility (RRF) receives almost all the attention, it represents only 90% of NextGenerationEU’s total budget. The remaining 10% — roughly €75 billion — is distributed across a series of smaller but strategically significant EU programmes. These funds operate alongside the RRF to sustain continuity between budget cycles, mobilise additional investments, and reinforce key transition policies.
Here’s how that 10% is structured, according to the lesson on “Structural Reform Plans.”
React-EU: bridging the budget gap
The React-EU initiative was designed as a financial bridge between two Multiannual Financial Frameworks (MFFs): the one ending in 2020 and the one starting in 2021. With €47.5 billion allocated, React-EU ensures continuity of support for regions and sectors hardest hit by the pandemic and economic slowdown.
Horizon Europe: supporting research and innovation
An extra €5 billion is added to Horizon Europe, the EU’s flagship research and innovation programme. Focused on science and advanced technology, Horizon funds everything from space engineering and robotics to clean tech and healthcare innovation. It is widely considered the world’s largest multinational R&I programme.
InvestEU: leveraging private capital
The InvestEU fund inherits the legacy of the “Juncker Plan,” which sought to mobilise private investments with public guarantees. With just €5.6 billion in EU allocation, InvestEU is expected to generate over €370 billion in strategic investments — thanks to the involvement of the European Investment Bank and national promotional banks, such as Italy’s Cassa Depositi e Prestiti. It targets areas such as sustainable infrastructure, digitalisation, SMEs, and social investment.
Rural Development: investing in sustainable agriculture
Another portion of the envelope strengthens rural development policies — funding agricultural transition, local innovation, and the implementation of Sustainable Development Goals in less urbanised areas. The goal is to make rural regions active players in Europe’s green and digital transitions.
Just Transition Fund: phasing out fossil fuels
With €10.5 billion, the Just Transition Fund supports regions most dependent on fossil fuels, particularly coal. It finances the reconversion of local industries and job markets, to ensure that climate neutrality does not leave communities behind.
RescEU: civil protection in a changing climate
Finally, the RescEU mechanism adds a new European safety net for civil protection. Complementing the existing EU Civil Protection Mechanism, RescEU reinforces disaster preparedness and response capacities — especially in view of climate-induced emergencies like wildfires, floods, or industrial accidents.
