Coronavirus: Europe announces US$825 billion recovery fund to help countries survive recession
- Grants will not just be handed over. Countries would have to apply, setting out their aims for the money and what reforms they plan to undertake
- The proposal appears largely in line with a plan unveiled this month by Germany and France, historically the main powers in the EU
The fund, to be mostly made up of grants and tied to the 27 member nations’ common budget, comes as the world’s biggest trading bloc enters its deepest ever recession, weighed down by the impact of the coronavirus. Virtually every country has broken the EU’s deficit limit as they’ve spent to keep health care systems, businesses and jobs alive.
While citizens across Europe are slowly returning to work and students move gradually offline and head back to classrooms, hardest-hit countries like Italy and Spain remain in desperate needs of funds and want to avoid any long-term wrangling. Barely off the press, the proposal received mixed reviews, with Dutch officials notably cool on it.
“Our unique model built over 70 years is being challenged like never before in our history,” European Commission President Ursula von der Leyen told EU lawmakers as she unveiled the plan. “This is Europe’s moment. Our willingness to act must live up to the challenges we are all facing.”
Von der Leyen said that the fund, which is dubbed Next Generation EU and must be endorsed by every country, is “providing an ambitious answer,” and she urged European nations to set aside their divisions.