EU leaders will attend a physical meeting in Brussels to discuss about the recovery plan in response to the crisis caused by COVID-19, as well as about a new long-term EU budget. The meeting will take place between 17th and 18th July 2020, during which a final political agreement will most likely be reached.
The amount of the recovery fund is one of the basic elements that will be analysed during the meeting. The President of the European Council, Charles Michel, presented his proposal regarding an economic recovery plan: “The Commission will be authorised to borrow up to € 750 billion euros through a decision on its own resources. These funds can be used for mutual (back-to-back) loans. It is an exceptional tool and is used only once for an exceptional situation.”
This will be done by issuing bonds on the financial markets on behalf of the EU, with a maturity of between 3 and 30 years, for measures adopted in the period of time of 2021-2024. The Commission will then direct the funds, taking into account the EU priorities, towards specific and new funding needs that have been identified through the crisis, through grants and loans.
The funds will be channelled, through the “Next Generation EU” instrument, towards programs designed to repair economic and social damages and pave the way for a better future.
The main pillars targeted:
- Support Member States’ recovery.
- Economic recovery and support for private investment.
- Capitalizing on the lessons learned from the crisis.
Additional information can be found here: https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response/recovery-plan-europe_ro.