Covid-19: the EU plan for the economic recovery

On 27 May the European Commission presented in Parliament a €750 billion economic stimulus plan that along with a revised proposal for the EU’s 2021-2027 budget should help mitigate the shock from the coronavirus pandemic and pave the way for a sustainable future.

Commission President Ursula von der Leyen unveiled the Next Generation EU recovery plan that aims to address the damage caused by the pandemic and invest in a green, digital, social and more resilient EU.

Under the proposal, the Commission would borrow the money on the financial markets using its high credit rating, which should secure low borrowing costs. A total of €500 billion would be distributed in grants. Von der Leyen described the grants as “common investments in our future”.

The funds will be used to reach the EU’s objectives of climate neutrality and digital transformation, to offer social and employment support as well as to reinforce the EU’s role as a global player.

The Commission’s plan for the recovery fund was introduced during the plenary session together with a revised proposal for the EU’s 2021-2027 budget amounting to €1.1 trillion. The proposals are subject to negotiations between Parliament and the member states in the Council.

The full text of the news you could read on the website of European Parliament.