COVID-19: the EU's response to the economic fallout

May 13, 2022

The EU and its member states have taken action to minimise the fallout on the economy of the COVID-19 pandemic.

On this page you can learn more about the concrete measures the EU is taking to support the economic recovery:

  • the EU's recovery plan, Next Generation EU
  • SURE: temporary support for workers
  • amendments to the EU budget to address urgent issues
  • re-direction of EU funds to help member states most in need
  • support to most affected sectors

A recovery plan for Europe

On 23 April 2020, EU leaders decided to work towards establishing an EU recovery fund aimed at mitigating the effects of the crisis. They tasked the European Commission to urgently come up with a proposal, which would also clarify the link between the fund and the EU's long term budget. The proposal, a recovery plan for Europe, was presented by the European Commission on 27 May 2020.

On 21 July 2020, EU leaders agreed on a €750 billion recovery effort, Next Generation EU, to help the EU tackle the crisis caused by the pandemic. 

Alongside the recovery package, EU leaders agreed on a €1 074.3 billion long-term EU budget for 2021-2027. Among others, the budget will support investment in the digital and green transitions and resilience.

Together with the €540 billion of funds already in place for the three safety nets (for workers, for businesses and for member states), the overall EU's recovery package amounts to €2 364.3 billion.

The European Parliament and the Council reached a preliminary agreement on the package on 10 November 2020. The European Council on 10-11 December 2020 addressed the concerns raised on the agreement and cleared the path for the recovery package to be adopted.

If you want to look throught the full infographic, please click the link:


EBRD lends €38.7 million to Azerbaijani shipping company


The European Bank for Reconstruction and Development (EBRD) is to provide a $42 million (€38.71 million) loan to the Azerbaijan Caspian Shipping Company (ASCO), a state-owned shipping company in Azerbaijan.

EU4 Azerbaijan: a single place for the latest information on cooperation with the EU


Are you looking for the latest information about EU cooperation in the countries of the Eastern Partnership? If you are living or interested in Azerbaijan, you can access live updated information on almost a thousand projects and programmes funded by the European Union in these six countries, thanks to a unique integrated online platform – the EUDIGITOOL – developed and maintained by the EU NEIGHBOURS east programme.

Sector-Specific EU Business Mission to Nakhchivan


EU Business Mission to Nakhchivan part of EU-Azerbaijan BusinessForum 2020-2022 assignment.

The EU project implemented by UNDP held the first “Ideathon on Agrinnovation” in Lankaran


EU4Lankaran supports the youth and innovation in agriculture in Lankaran/Astara economic region.



As a result of the successful socio-economic policy of the head of the state, a favorable business environment has been created in our country. Systematic measures carried out towards the sustainable development of the non-oil economy, effective mechanisms applied to support investments, increase production and export potential also open wide opportunities for business development in the regions.

The "Youth Business Workshop" project was launched in Gabala


The goal of the “Youth Business Workshop” project, implemented jointly by KOBIA, the State Employment Agency and the State Agency for Vocational Education, is to develop business skills, promote entrepreneurship, ensure self-employment among young people receiving vocational training, increase the number of young people receiving vocational training among micro and small entrepreneurs, support new business initiatives, increase interest in vocational education.

Eurovillage 2022 in Baku: join the celebrations on 14 May


The EU Delegation to Azerbaijan invites Baku residents to take part in the Eurovillage 2022 this Saturday, 14 May.  The main theme of the event is the EU in Baku, the European Youth Year 2022 and the Healthy Lifestyle for All Campaign (H4ALL).

Which products became more expensive in April?


In April this year, inflation in Azerbaijan was recorded at 1% against 1.1% in March.

COVID-19: the EU's response to the economic fallout


EU recovery funds to reach 24 EU countries. So far, 24 EU countries have got the green light for the use of EU recovery and resilience funds to boost their economies and assist the recovery from COVID-19.

EU and UNDP launch new Mayors for Economic Growth Facility in Azerbaijan


On 14 March 2022 the European Union and the United Nations Development Programme (UNDP) in Azerbaijan have launched the new Mayors for Economic Growth Facility (M4EG). The M4EG Facility will run up to 2024 and aim at sustainable development throughout the Eastern Partnership (EaP) region.

Europe's economy bounces back from a double-dip recession


EU countries emerged from a double-dip recession in the second quarter with a growth of 1.9% more than the quarter before, according to figures released by Eurostat. The economy in the 19 countries that use the euro currency grew by 2%.

Italy pays homeowners 110% of costs to eco-proof their homes


While homeowners in the UK were considering a government offer of £5,000 (€5927) towards a heat pump last week, residents in Italy have been enjoying a much more rewarding scheme.