This is lesson 28 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 on the priorities of NextGenEU.
With over €724 billion in current prices, NextGenerationEU is the European Union’s most ambitious investment plan to date — a financial and political tool aimed at accelerating recovery while repositioning the bloc for the challenges of the coming decades. But where exactly will this historic funding effort go? The EUPress lesson on “Priorities of NextGenEU” breaks down the six core strategic areas set by the European Commission.
- Green Transition (at least 37.5% of funds)
The largest share of the Recovery and Resilience Facility is reserved for the ecological shift: decarbonisation, climate mitigation, circular economy, resilience against territorial risks. Each National Recovery Plan must devote at least 37.5% of allocations to green transition investments. This makes NextGenEU a central implementation lever of the European Green Deal.
- Digital Transition (at least 20% of funds)
The second priority is the digitalisation of Europe’s economy and public services. At least 20% of funding must target digital infrastructure, AI, advanced robotics, and industrial capacity in key technologies such as semiconductors. The objective is not just to modernise — but to close the competitiveness gap with the US and China.
- Smart, Sustainable and Inclusive Growth
This category includes a broad set of policies to support innovation, productivity, and environmental sustainability. Smart city projects, improved logistics, energy efficiency systems, and regional industrial ecosystems all fall under this heading. The focus is on sustainable economic growth that’s both technologically advanced and socially equitable.
- Social and Territorial Cohesion
Despite existing EU cohesion funds in the Multiannual Financial Framework, NextGenEU introduces additional support for reducing disparities between regions and communities. Investments include social, cultural and educational infrastructure, though the coordination between the RRF and existing EU budgetary tools remains a point of concern in several member states.
- Health System Resilience
A direct response to the COVID-19 crisis, this priority funds medical infrastructure, hospital networks, territorial health services and crisis preparedness. All 27 member states have included measures to reinforce health systems, aiming to build long-term resilience rather than short-term emergency fixes.
- Policies for the Next Generation
Finally, NextGenEU dedicates resources to human capital: from early childhood education to university modernisation and vocational upskilling. Investments target kindergartens, schools, and lifelong learning initiatives, marking a shift toward viewing education as foundational to Europe’s recovery and long-term renewal.
While the framework of priorities and minimum funding thresholds is defined at EU level, implementation remains decentralised: each member state negotiates its own National Plan with the European Commission. This flexibility allows for national adaptation, but also reveals wide variation in timelines, management capacity and alignment with pre-existing EU funds.
