The European Commission intends to spend € 1.3 trillion over the next seven years on the economic recovery of the EU after the COVID-19 pandemic, in addition to the € 1.85 trillion budget proposed for 2021-2027, said European Commission Executive Vice-President Valdis Dombrovskis.
According to him, the European Commission has proposed the creation of a € 750 billion EU new generation restoration fund. This fund will complement the € 540 billion emergency pandemic program, which will be launched on June 1, TASS reported.
Thus, our response will be about € 1.3 trillion, which will complement the next seven-year budget of the European Union, Dombrovskis added.
In turn, European Commissioner for Economics Paolo Gentiloni noted that the funds from the € 750 billion fund will be used to finance transformations in the economy of the EU states aimed at its transformation into a green and digital economy. According to him, the EU member states must submit their applications for € 250 billion, which will be distributed in the form of grants until 2022, and for the remaining € 500 billion, which will be allocated to EU states in the form of loans, until 2024.
The EU restoration plan proposed by the European Commission should now receive the approval of the European Parliament and all 27 EU member states in the EU Council.
According to the EC forecast, the recession of the EU economy in 2020 will be a record 7.7% in history, and in the case of the pessimistic scenario and the second pandemic wave, it can reach a catastrophic 16%.