The European Commission has proposed a recovery fund to overcome the socioeconomic crisis and 750,000 million of euros. The Commissioner for the Economy, Paolo Gentiloni, has been the one who has announced the final figure of the reconstruction fund that the President of the European Commission, Ursula von der Leyen, has presented hours later together with the draft of the EU Budget for the period 2021-2027.
Von der Leyen has baptized this recovery instrument as ‘Next Generation EU’ and has advanced that the 750,000 fund will be added to a renewed long-term EU budget of 1,100,000 million euros It will also join the three safety nets of 540,000 million euros in loans, already agreed by Parliament and the Council. Taken together, all of this would lift recovery efforts to a total of € 2.4 billion..
“The money will be raised by temporarily raising the limit on own resources, to allow the Commission to use its very strong credit rating to borrow money in the financial markets,” announced the Commission President. “This is an urgent and exceptional need for an urgent and exceptional crisis,” he concluded.
“It will help make our health systems more resilient for future crises […] This investment will be a new European common good, “he defended.
Of the total of 750,000 million, only 500,000 million would be transferred to the states without funds, while the remaining third would be made up of loans.
In this way, Spain could receive 140,446 million euros, of which 63,122 would be reimbursable. Only Italy would receive a larger amount, 179,000 million of which 91,000 would have to return.
The reconstruction fund represents a historical item that exceeds the 500,000 proposed by France and Germany, but which only exceeds the aspirations of the Government of Spain and the Bank of Spain -which estimated that 1.5 million would be necessary to reactivate the economy-, thus and the European Parliament’s claim if its amount is added to the rest of the injections planned in the long term.
The European Parliament days ago claimed a recovery package of 2 billion euros that should be added to the next Multiannual Financial Framework (MFP), the long-term EU budget, to rebuild the economy. He proposed a ‘Recovery and Transformation Fund’ that would be financed “through the issuance of long-term recovery bonds guaranteed by the Union budget”, and whose money should be disbursed “through loans and, above all, grants, direct payments for investments and capital “.