on Tuesday, may 27, the European Commission announced the agreed plan recovery unit after the pandemic coronavirus Covid-19. The Commission also announced its adjusted programme of work to 2020, which will prioritize the actions necessary to accelerate recovery and stability of Europe.
"the European Commission proposes to use the full potential of the EU budget amounting to 750 billion euros, as well as ... to increase the overall financial strength of the EU budget to 1.85 trillion euros", - stated in the message of the Commission.
"the recovery Plan makes a huge problem that we face is an opportunity, not only supporting the restoration, but also investing in our future," said European Commission President Ursula von der Leyen.
Announced today funding one and a half times more initiatives of Germany and France, who offered to send 500 billion euros for the restoration of the EU. A recovery plan is not part of the budget, but he tied to it, as the budget frame is the only option to collect and distribute such greater amount as 750 billion euros.
the Commission plans to raise money, temporarily raising the ceiling of own resources of up to 2% of the gross national income of the European Union that will allow it to use its strong credit rating to borrow 750 billion euros on the financial markets. This additional funding will be channelled through the EU programme and be repaid over a long period of time in the future budgets of the EU - not earlier than 2028 and 2058 not after years.
Now this plan needs to consider the heads of States and governments of EU countries. The next summit was scheduled for June, but it is unknown when he will be able to take place, given the pandemic. In order that the European Commission could borrow 750 billion euros, to go through a complicated procedure of decision-making in the EU, in particular the ratification by the parliaments of all 27 member States of the Association. Therefore, this element will start to work not earlier than 1 January 2021.
to now begin a program of lending to the economy, the European Commission proposed an intermediate solution is to increase the current EU budget for 2014-2020. We are talking about 11.5 billion euros. Besides the decisions of the summit, only need the consent of the European Parliament. The European Commission intends that the scheme will start on 1 September.
