The so-called Next Generation EU program will enable economic recovery of the European Union, and should make it stronger in confronting future crises, members of the European Parliament said during a plenary session on Tuesday.

The European Parliament was discussing a proposal for a regulation establishing a Recovery and Resilience Facility, the key part of the Next Generation EU package, which would be put to a vote later in the day. The purpose of this facility is to help EU economies recover from the consequences of the coronavirus pandemic, boost resilience, reduce economic and social differences between member states, and assist in the green and digital transition.

The Next Generation EU instrument has a total budget of €750 billion. The bulk of it, €672.5 billion, will be paid out through the Recovery and Resilience Facility, and of this amount, €312.5 billion accounts for grants and €360 billion for loans.

Croatia is entitled to use €10.6 billion from the Next Generation EU instrument, including €5.94 billion in grants and €3.61 billion in loans from the Recovery and Resilience Facility.

After the vote on the Recovery and Resilience Facility in Parliament, the package will be put to a vote in the Council within the next few days and the regulation is expected to enter into force on 18 February.

The condition for the Next Generation EU instrument and the Recovery and Resilience Facility to take effect is for member states to ratify the Own Resources Decision, a guarantee that the Commission can borrow €750 billion on financial markets. Croatia was among the first member states to ratify the decision.

The decision has so far been ratified by Cyprus, Croatia, Slovenia, Portugal, France and Bulgaria. The ratification process is expected to be completed in the second quarter of this year.