At this EPC Update, EPC Director of Studies Janis A. Emmanouilidis, Policy Analyst Marta Pilati and Chief Executive Fabian Zuleeg will discuss the outcome of the upcoming special European Council meeting on 17-18 July on the next Multiannual Financial Framework (MFF) for 2021-2027 and the Recovery Plan in response to the COVID-19 crisis. At this first physical simmit meeting since the beginning of the crisis, EU leaders are aiming to reach a compromise on six building blocks of a possible agreement, which have been identified by European Council President Charles Michel: (1) the size of the MFF; (2) the rebates; (3) the size of the recovery package; (4) the balance between loans, guarantees and grants; (5) the allocation of the Recovery and Resilience Facility (RRF); and (6) questions related to governance and conditionality. This EPC Update will analyse the outcome of the EU Summit and, depending on the success or failure of the meeting of Heads of State and Government, look ahead in terms of the next steps that will have to follow and what this might mean for Europe’s recovery and long-term prosperity.