The european Commission has revealed the extent and nature of the european recovery plan in the european Parliament. Ursula von der Leyen offers the member States to take the 750 billion euros over 30 years. The repayment of the capital will take place from 2028. This stimulus plan is backed by the eu budget in the long term (2021-2027). There is even injected, because, with this loan, the european Union programmes, such as research (Horizon) or the cohesion fund for the economic catch-up, will be enhanced for the next seven years.
The companies, they, cannot wait for the year 2021 for the benefit of money. Also the european Commission proposes that member States adopt an extension of the current budget (2014-2020) in order that, as of 1 September, the Commission could begin to support companies in distress. This extension must be voted on unanimously in the european Council and validated by the european Parliament.
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“transfers” of solidarity
In the recovery plan, the share of direct aid will be of € 500 billion (according to the franco-German proposal), while 250 billion euros will be paid in the form of loans to member States. The crisis of the coronavirus affects all european economies. Therefore, all member States, including the netherlands, Austria, Denmark or Sweden, and their businesses will benefit from the european funds, some more affected than others (Italy, Spain…), will be more supported. It is in this respect that the european solidarity will be expressed and that there will be “transfers” of the strongest to the weakest.
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The member States will, however, show white paw. They will have to submit plans to the Commission for funding that meet the objectives of digital transition and the ecological, the Union has set itself. The european Council will have to validate these national plans to ensure that the funds will be destined to shared objectives and are defined by the Europeans. It is here that the countries of the North, to be suspicious towards Italy, Spain and France, will be able to exercise a control on the effectiveness of the funds allocated.
A component of fight against crises
in Addition to the member States, the stimulus funds will also be used to support businesses (with the assistance of loans from the european investment Bank). Finally, a third installment is planned to create and improve the responsiveness of european tools to combat the crisis (pandemic, etc). It is creating stockpiles of equipment, training of operational teams, improve mutual assistance between the States, so that, when the next financial crisis, the EU is not unprepared and dependent of orders in Asia that put a crazy amount of time to reach Europe…
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This loan is very significant of the Commission – a first in the history of the EU – will have to be approved by all national parliaments before the end of the year.
The reimbursement will only take place from the eu budget 2028-2035. Each State will be sought at the level of its contribution to the wealth of europe. Meanwhile, the Commission hopes that the EU will adopt the new own resources : a tax on the giants of the digital, a tax on large groups, a carbon tax at the borders. These new own resources could reduce the national contributions of the member States.
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