Leaders of European nations initiate to repair their economy deeply wounded by the pandemic by gathering around to take action. After several days of talking about the funding’s amount and composition, a consensus has been met. The recovery fund agreed by the 27 countries is 750 billion euros (around $860 billion).
First steps to recovery
This news of the agreement among the European nations to save the economy aided in buoying up stocks in the continent. Leaders of the EU countries got together last Friday to determine the budget to help the economy recover, with discussions that dragged on for days after decisions are divided among members. But finally, the committee saw eye to eye with this new deal.
Purposes of the fund
On the European Council website, president of the committee Charles Michel, stated: “The goals of our recovery can be summarized in three words: first convergence, second resilience, and transformation. Concretely, this means: repairing the damage caused by COVID-19, reforming our economies, remodeling our societies.”
Among the objectives of this initiative is to fund efforts to help businesses to bounce back from the aftermath of the outbreak. The EU heads is also thinking ahead, by thinking long-term recovery for the economy while also setting up investments that are dedicated for crises that may abound in the future.
Merkel and Macron walked out of the room- Italy, Spain angry as EU leaders fail to agree on how to divvy up the money.
In the U.K. funding was announced and delivered weeks ago
750bn coronavirus rescue fund in chaos as EU squabbles over purse stringshttps://t.co/c8IbFQprxG
— Nadine Dorries 🇬🇧#StayAlert (@NadineDorries) July 20, 2020
According to head of EU council telling the press people, “We did it! Europe is strong. Europe is united. This is a good deal, this is a strong deal, and most importantly, this is the right deal for Europe right now.”
Council president Michel also noted how unprecedented it is for EU members to join forces in helping the economies survive the pandemic.
In a collective statement by the EU heads, they said: “It is an ambitious and comprehensive package combining the classical [budget] with an extraordinary recovery effort destined to tackle the effects of an unprecedented crisis in the best interest of the EU.”
As reported on CNN, the EU heads agreed to borrow money on financial markets, with 390 billion euros (over $440 billion) dedicated as grants for those European countries most affected by the pandemic. The rest are for loans. The committee also determined about 1.1 trillion euros (or $1.3 trillion) as the new budget for the next seven years from 2021. This also includes investment “in digital and green transitions.”