The European Council consisting of the heads of state and government of EU Member States reached a political agreement in July 2020 to establish a €750 recovery plan dubbed "Next Generation EU" to mitigate the impact of the COVID-19 on the European economies. Its largest component, the Recovery and Resilience Facility, was established in an EU regulation adopted in February 2021. It consists of €312.5 grants allocated to Member States following an allocation key that considers population size, GDP and employment situation. Countries can additionally request loans, with a total of €360 bn available through the Recovery and resilience Facility.
In order to access funding from the Recovery and Resilience Facility, Member States have presented National Recovery and Resilience Plans. The plans describe how the money will be spent and must correspond to the requirements of the regulation establishing the facility. As of 1 March 2022, 26 Member States have submitted national plans, and 22 have been approved so far, with €47 bn in grants and €20 bn in loans already disbursed.