Leyen presents €750bn EU Recovery Plan
Today, the European Commission has put forward its proposal for a major recovery plan. To ensure the recovery is sustainable, even, inclusive and fair for all Member States, the European Commission is proposing to create a new recovery instrument, Next Generation EU, embedded within a powerful, modern and revamped long-term EU budget. The Commission has also unveiled its adjusted Work Programme for 2020, which will prioritise the actions needed to propel Europe’s recovery and resilience.
“…Things we take for granted are being questioned. There is the Single Market that needs to recover. There is the playing field that needs to be made even again. And there are four freedoms that need to be fully restored. The crisis has huge externalities and spillovers across countries. None of that can be fixed by any single country alone. A bankrupt company in one Member State, is a reliable supplier gone for a business in another. A struggling economy in one part of Europe, weakens a strong economy in another part” European Commission President Ursula von der Leyen said.
The coronavirus has shaken Europe and the world to its core, testing healthcare and welfare systems, our societies and economies and our way of living and working together. To protect lives and livelihoods, repair the Single Market, as well as to build a lasting and prosperous recovery, the European Commission is proposing to harness the full potential of the EU budget. Next Generation EU of €750 billion as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the total financial firepower of the EU budget to €1.85 trillion.
“The recovery plan turns the immense challenge we face into an opportunity, not only by supporting the recovery but also by investing in our future: the European Green Deal and digitalization will boost jobs and growth, the resilience of our societies and the health of our environment. This is Europe’s moment. Our willingness to act must live up to the challenges we are all facing. With Next Generation EU we are providing an ambitious answer” von der Leyen said.
“Our common budget is at the heart of Europe’s recovery plan. The additional firepower of Next Generation EU and the reinforced multiannual financial framework will give us the power of solidarity to support Member States and the economy. Together, Europe will arise more competitive, resilient and sovereign” Commissioner Johannes Hahn, in charge of the EU budget said.
“The recovery will need strong policy direction. The adapted Work Programme, reflecting the new reality, shows that we will focus all our actions on overcoming the crisis, jumpstarting our economy and putting the European Union firmly on a resilient, sustainable and fair recovery path. It will help us rebound stronger” vice-President Maroš Šefčovič, in charge of interinstitutional relations and foresight, said.
Complementing national efforts, the EU budget is uniquely placed to power a fair socio economic recovery, repair and revitalise the Single Market, to guarantee a level playing field, and support the urgent investments, in particular in the green and digital transitions, which hold the key to Europe’s future prosperity and resilience.
Next Generation EU will raise money by temporarily lifting the own resources ceiling to 2.00% of EU Gross National Income, allowing the Commission to use its strong credit rating to borrow €750 billion on the financial markets. This additional funding will be channelled through EU programmes and repaid over a long period of time throughout future EU budgets – not before 2028 and not after 2058. To help do this in a fair and shared way, the Commission proposes a number of new own resources. In addition, in order to make funds available as soon as possible to respond to the most pressing needs, the Commission proposes to amend the current multiannual financial framework 2014-2020 to make an additional €11.5 billion in funding available already in 2020.
“Europe is in a unique position to be able to invest in a collective recovery and a common future. In our Union, people, business and economies depend and rely on each other. In our Union, cohesion, convergence and investment are good for all.
And in our Union, we know that the boldest measures truly are the safest for our future.
This is why the Commission is today proposing a new recovery instrument, called Next Generation EU – worth EUR 750 billion” von der Leyen announced.
“It will sit on top of a revamped long-term EU budget of EUR 1.1 trillion.
Next Generation EU – together with the core MFF – sums up to EUR 1.85 trillion in today’s proposals. It goes alongside the three safety nets of EUR 540 billion in loans, already agreed by Parliament and Council. In sum, this would bring our recovery effort to a total of EUR 2.4 trillion”