EU Economic Recovery Plan
The European Commission has put forward its proposal for a major economic recovery plan in the wake of the coronavirus crisis.
Leyla Cheamil, 28.05.2020, 13:50
The COVID-19 pandemic has caused enormous loss at global level. In Europe, politicians have put heads together to find solutions to help the economy affected by this unprecedented situation. Therefore, the European Commission on Wednesday put forward its proposal for a major economic recovery plan to offset the effects of the new coronavirus crisis on the member countries’ economies. The money at stake totals 750 billion Euros, of which 500 billion as non-reimbursable aid and 250 billion as loans. Romania is to receive about 33 billion Euros.
This amount adds to a revised, long-term EU budget worth 1,100 billion Euros, said the president of the EC, Ursula von der Leyen, who pointed out that, all in all, the package of economic recovery initiatives stands at 2,400 billion Euros. The amount of 750 billion Euros proposed by the EC on Wednesday is to be borrowed by the EC from the financial markets, and distributed to the member states that were hardest hit by the pandemic in the form of grants and loans.
The additional funds will be channeled through the common budget programs and repaid over a long period of time throughout the future EU budgets, not before 2028 and not after 2058. To help do this in a fair and shared way, the EC has proposed a number of new own resources, such as a digital services tax or a carbon tax at Europe’s borders.
The plan, called Next Generation EU, is according to Ursula von der Leyen, an urgent and exceptional necessity for an urgent and exceptional crisis, and it will invest in the EU social fabric, protect the Single Market and help rebalance balance sheets across Europe. And while we are doing this, Ursula von der Leyen added, we need to press fast-forward towards a green, digital and resilient future.
The EU chief called on Europeans to ‘put old prejudices to one side’ and support the economic recovery plan. ‘The crisis we have to tackle is enormous but it is also huge opportunity for Europe, and it is a huge responsibility for us to do the right thing in this defining moment’ said Ursula von der Leyen in her speech at the European Parliament Plenary on the EU Recovery Package.
The leaders of the main political groups in the EP expressed contentment with the EC proposals. The People’s Movement Party and the Socialists have criticized Austria, Sweden, Denmark and the Netherlands for their reticence towards the EC plan and their opposition to grants, since these countries prefer supporting the EU economy only through loans, not also through subsidies. The EC plan will be on the agenda of the European summit scheduled for June 18th and 19th. (translation by Lacramioara Simion)
