The European Commission will move to launch the EU’s proposed €750 billion recovery fund without Hungary and Poland if there’s no breakthrough in the budget deadlock at next week’s European Council, Commission President Ursula von der Leyen told European Parliament President David Sassoli on Wednesday, according to two Parliament officials. The programmes are Horizon Europe, Erasmus+, EU4Health, Integrated Border Management Fund, Rights and Values, Creative Europe, InvestEU, European Border and Coast Guard Agency, Humanitarian Aid. Of the money, €390bn will be distributed in grants while €360bn will be given out in the form of repayable loans. The … The grand EU budget deal reached by the European Council on 21 July 2020, which includes a one-time €750 billion recovery fund named ‘Next Generation EU’ (NGEU), is unprecedented. EU leaders reduced the proposed budget to €1.074 trillion at their summit on 17-21 July. A. 1 of 14. Poland and Hungary agreed to the deal in July but later vetoed it, fearing the new “rule of law mechanism” might target them for possible breaches of Europe’s democratic standards. Will there be a second round of lockdowns? That followed a frenzy of meetings this week, including an … To finance the recovery, the EU will borrow on the markets at more favourable rates than many Member States and redistribute the amounts. A 500bn recovery fund – 3.6% of GDP - that should solely be based on grants. BRUSSELS (Reuters) - European Union leaders unblocked on Thursday a 1.8 trillion euro financial package to help the economy recover from the pandemic-induced recession after reaching a … As the new EU wide funding means lower downside risks to the CEE key export market and higher odds of a synchronised EU recovery, this … A quarter of spending has been earmarked for climate action and a ‘do no harm’ clause rules out environmentally damaging investments . MEPs reiterated that this fund must be added on top of the EU long-term budget and not be to the detriment of existing and future EU programmes. In order to find a solution that can be agreed by all sides, Van Overtveldt said there must be a compromise: “There has to be solidarity, certainly, vis-à-vis the countries hardest hit by Covid-19, but there also has to be responsibility. The EU long-term budget will continue to be financed through the well-known revenue sources of the EU budget: In addition, as of 1 January 2021, a new national contribution based on non-recycled plastic packaging waste will be introduced as a source of revenue of the EU budget. Ahead of a vote on plans to revise the post-2020 EU budget, the chair of Parliament’s budget committee Johan Van Overtveldt warned the economic recovery would be “slow and gradual” and that the prediction of a 7.5% decline in economic activity this year is a “mild forecast”. GREEN BOOST. 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MEPs reiterated that this fund must be added on top of the EU long-term budget and not be to the detriment of existing and future EU programmes. The Commission relies on the commitment of Member States to proceed as quickly as possible, in the interest of all EU citizens. EU leaders reduced the proposed budget to €1.074 trillion at their summit on 17-21 July. On 10 November 2020, the European Parliament and the Council reached an agreement on the package. According to the EU Recovery Fund, Italy should receive € 209 billion over the next six years, of which about 81 is for grants and 128 for loans to be repaid with interest. The new long-term budget will increase flexibility mechanisms to guarantee it has the capacity to address unforeseen needs. EU Recovery Fund to Provide a Boost to EU Growth. A recovery fund worth €750bn (£670bn; $825bn) has been proposed by the EU's executive Commission to help the EU tackle an "unprecedented crisis". Post-COVID-19 Europe will be greener, more digital, more resilient and better fit for the current and forthcoming challenges. MEP Guy Verhofstadt wants the European Parliament to now deal with the shortcomings of the EU recovery deal (Photo: European Parliament) By Guy Verhofstadt. The Belgian MEP said the EU’s €1.8 trillion budget and coronavirus recovery fund would have “far-reaching political consequences” as crooked capitals delve into the huge war chest. The Commission put forward its proposal for the EU’s next long-term budget on 2 May 2018. Fitch Ratings-London-23 July 2020: The EUR750 billion recovery fund agreed by EU leaders is net supportive for EU sovereign ratings, Fitch Ratings says. EU27 leaders agreed on: — EUR 750 bn recovery fund. … The EU’s recovery fund proposals: crisis relief with massive redistribution. EU Recovery Fund Is a Step Towards a More Resilient Eurozone. MEPs called on 15 May for a €2 trillion fund, built into the EU’s next long-term budget, which puts Europeans at the heart of the Covid-19 recovery. finalise the adoption of the MFF Regulation and the Own Resources Decision, Council decided to adopt the next long-term EU budget, agreement on the Recovery and Resilience Facility, Questions and answers on the adoption of the EU's long-term budget for 2021-2027, European Commission to issue €62.9 billion worth bonds under existing programmes in 2021, EU budget 2021: A kick-start of the European recovery, EU budget: European Commission welcomes the adoption of the EU's long-term budget for 2021-2027, Recovery from coronavirus: success stories, Aid, Development cooperation, Fundamental rights, Follow the European Commission on social media, research and innovation, via Horizon Europe, fair climate and digital transitions, via the Just Transition Fund and the Digital Europe Programme, preparedness, recovery and resilience, via the Recovery and Resilience Facility, rescEU and a new health programme, EU4Health, modernising traditional policies such as cohesion and the common agricultural policy, to maximise their contribution to the Union's priorities, fighting climate change, with 30% of the EU funds, the highest share ever of the European budget, biodiversity protection and gender equality, a financial contribution linked to the corporate sector, Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU): NextGenerationEU also includes €47.5 billion for REACT-EU. There is no more time to lose. in.gr. cohesion, agriculture, Erasmus, Horizon Europe, etc). Watch the full interview with budget committee chair Johan Van Overtveldt. Negotiations on the MFF for the period 2021-2027 were at an advanced state when the coronavirus-induced economic crisis hit the EU. These countries were known as being hostile to increasing the size of the EU budget and delayed an agreement on the recovery fund because they opposed funding it by common debt. Before the EU summit was adjourned after all-night talks, a compromise was proposed that would reduce the proportion of grants to about 50% of the fund, or €375 billion ($429 billion). On 18 December 2020, the European Parliament and the Council reached an agreement on the Recovery and Resilience Facility, the key instrument at the heart of NextGenerationEU. Of that €390 billion, around €312.5 billion (80%) will be allocated to the so-called EU Recovery and Resilience Facility. Paying it back will be even harder. He stressed the importance of improving the resilience of the EU economy, and making it better equipped to deal with emergencies like Covid-19: “What it’s all about at the end of the day is what you can achieve to increase the wellbeing and welfare of EU citizens. It is a new initiative that continues and extends the crisis response and crisis repair measures delivered through the. Businesses, workers, NGOs across Europe are demanding the rapid release of money from both the EU budget and the Recovery Fund. Poorer European Union countries and those hardest hit economically by the COVID-19 crisis could obtain up to 15% of their GNI in grants and guarantees from the EU’s proposed recovery instruments. European Union leaders meet for a year-end … On 21 July 2020, EU heads of state or government reached a political agreement on the package. There is so much uncertainty: will there be a relapse? On Wednesday 27 May, the European Commission was the third to present a plan for the EU recovery fund in less than a week. Anyone can benefit from the EU budget. The framework proposal was immediately followed by legislative proposals for the 37 sectoral programmes (e.g. Jul, 12:00. On 18 December 2020, the Council and the Parliament reached a provisional agreement on the Recovery and Resilience Facility (RRF). EU leaders consider new proposal in bid to break deadlock on coronavirus recovery fund. And yet this divisiveness has been baked into the EU recovery fund, complete with country allocations drawn up even before we know the effects of the recession on each region. Spain to channel EU recovery fund money to public-private partnerships, slashes bars’ rent The Spanish government announced a system of public-private partnerships, open to all companies, to channel the EU funds into the economy. The Commission’s plan for the recovery fund was introduced during the plenary session in May together with a revised proposal for the EU's 2021-2027 budget amounting to €1.1 trillion. The EU recovery fund should be at the heart of this, and actions in 2021 will matter enormously for the recovery in years to come. Posted: Dec 10, 2020 / 07:28 AM EST / Updated: Dec 10, 2020 / 07:28 AM EST. Spain will receive close to €140 billion over the next six years from a €750 billion coronavirus recovery fund that the 27 members of the European Union agreed on in the early hours of Tuesday following a marathon summit in Brussels. * The amounts include the targeted reinforcement of ten programmes for a total of €15 billion, compared to the agreement from 21 July 2020.
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