They also wanted to impose stricter conditions on the member states receiving the funding. Posted: Dec 10, 2020 / 07:28 AM EST / Updated: Dec 10, 2020 / 07:28 AM EST. Negotiations on the MFF for the period 2021-2027 were at an advanced state when the coronavirus-induced economic crisis hit the EU. On 18 December 2020, the Council and the Parliament reached a provisional agreement on the Recovery and Resilience Facility (RRF). It would be financed through joint long-term debt issued by the EC on behalf of … The Commission proposed the Facility on 27 May 2020 as the centrepiece of NextGenerationEU, a temporary recovery instrument that allows the Commission to raise funds to help repair the immediate economic and social damage brought about by the coronavirus pandemic. The EU's agreement on a Recovery and Resilience Fund (RFF) to fight the economic consequences of the Covid crisis can be seen as one of the most historic feats of the bloc in recent decades. Leaders have agreed to pass the new budget and coronavirus recovery fund, including holdouts Hungary and Poland. 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. It’s against this backdrop that, last month, European politicians finally agreed to raise a €750bn fund to be allocated among EU states to help the Covid-19 recovery. Graphic: EU could join leading euro zone bond issuers - 3. EU coronavirus recovery fund BLOCKED by Hungary and Poland - Brussels in crisis THE European Union was plunged into turmoil today after Hungary … EU recovery fund and budget negotiations aren't over yet. More than 50% of the amount will support modernisation, for example through: In addition, the package pays attention to, All amounts in € billion, in constant 2018 prices. 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. EU heads of state or government reached a political agreement on the package. A recovery fund worth €750bn (£670bn; $825bn) has been proposed by the EU's executive Commission to help the EU tackle an "unprecedented crisis". On Wednesday 27 May, the European Commission was the third to present a plan for the EU recovery fund in less than a week. European Union countries whose economies have been battered by the coronavirus pandemic are impatiently waiting to get their hands on the recovery fund, sanctioned by the EU. It is a budget fit not only for today's realities but also for tomorrow's uncertainties. A 500bn recovery fund – 3.6% of GDP - that should solely be based on grants. But doling out €750 billion in grants and loans will be a tricky task. GREEN BOOST. EU €750 billion Covid recovery fund comes with green conditions Published on 27/05/2020, 2:37pm. EU strikes deal on $2.21 trillion seven-year budget and recovery package considered vital for many European … * The amounts include the targeted reinforcement of ten programmes for a total of €15 billion, compared to the agreement from 21 July 2020. 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. EU leaders consider new proposal in bid to break deadlock on coronavirus recovery fund. It will be a greener, more digital and more resilient Europe. … 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. EU leaders went the distance to agree a historic coronavirus recovery fund for the bloc. Direct access to language menu (press "Enter"), Direct access to search menu (press "Enter"), Covid-19 recovery fund must be added to EU long-term budget, €2 trillion to rebuild the economy after Covid-19, Van Overtveldt: do not take Parliament’s consent on EU long-term budget for granted (12 May 2020), Parliament President to EU institutions: ‘Be brave on EU recovery plan’ (6 May 2020), Long-term EU budget: MEPs demand safety net for beneficiaries (4 May 2020), Recovery plan must be green and ambitious, say MEPs (21 April 2020), Stepping up EU response to alleviate effects of Covid-19 (17 April 2020), a vote on plans to revise the post-2020 EU budget, climate action is at the core of the post-pandemic recovery, Parliament called for a €2 trillion recovery package, called on the Commission to prepare a contingency plan, Ten things the EU is doing to fight the coronavirus. In its resolution adopted on 15 May, Parliament called for a €2 trillion recovery package to address the impact of the coronavirus. 1. Learn about the tendering process and opportunities for doing business with the European Commission. Guntram Wolff Director of Bruegel. 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. 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. 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. 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 last step of the adoption of the next long-term EU budget was reached on 17 December 2020. 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. 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 EU has proposed a mechanism linking the bloc’s €1.8 trillion budget, which includes a €750bn coronavirus recovery package, to its members' respect of the rule of law. 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. EU recovery fund and the EU budget is positive for the CEE region with the EU transfers into CEE in the 2021-27 period rising vs the prior budget. Updated / Tuesday, 21 Jul 2020 19:25 The EU summit produced a Covid recovery fund and a €1.8 trillion budget package Between 2018 and the beginning of 2020, the Commission worked hand in hand with the rotating Presidencies of the Council, and in close collaboration with the European Parliament, to take the negotiations forward. The EU’s long-term budget, coupled with NextGenerationEU, the temporary instrument designed to boost the recovery, will be the largest stimulus package ever financed through the EU budget. The European Commission is considering a way to proceed with its €750bn coronavirus recovery fund that will exclude Hungary and Poland. Along with the human cost of lives lost, the hit to the EU economy has been severe. The European recovery, it is said, was a harshly uneven one. EU Recovery Fund to Provide a Boost to EU Growth. By LORNE COOK and RAF CASERT December 10, 2020 GMT. The commission said it expects the whole 750 billion-euro recovery effort agreed by EU leaders to deliver a … Find out the latest news on the EU-coordinated response to the coronavirus outbreak and the European Parliament's actions. Europos Komisija palankiai vertina susitarimą dėl 1,8 trln.EUR vertės priemonių rinkinio, kuris padės kurti ekologiškesnę, labiau skaitmeninę ir atsparesnę Europą), (Uniós költségvetés: Az Európai Bizottság üdvözli a zöldebb, digitálisabb és ellenállóbb Európára irányuló, 1,8 billió eurós csomagról született megállapodást), (Il-baġit tal-UE: Il-Kummissjoni Ewropea tilqa' l-ftehim dwar pakkett ta' EUR 1.8 triljun biex jgħin fil-bini ta' Ewropa aktar ekoloġika, aktar diġitali u aktar reżiljenti), (EU-begroting: Europese Commissie ingenomen met akkoord over pakket van 1,8 biljoen euro dat een groener, digitaler en veerkrachtiger Europa tot stand helpt brengen), (Budżet UE: Komisja Europejska z zadowoleniem przyjmuje porozumienie w sprawie pakietu o wartości 1,8 bln euro, który pomoże w budowie bardziej ekologicznej, cyfrowej i odpornej Europy), (Bugetul UE: Comisia Europeană salută acordul privind pachetul în valoare de 1,8 mii de miliarde EUR care va contribui la construirea unei Europe mai verzi, mai digitale și mai reziliente), (Rozpočet EÚ: Európska komisia víta dohodu o balíku v objeme 1,8 bilióna eur, ktorý pomôže vybudovať zelenšiu, digitálnejšiu a odolnejšiu Európu), (Proračun EU: Evropska komisija pozdravlja dogovor o svežnju v vrednosti 1,8 bilijona evrov, ki bo pomagal zgraditi bolj zeleno, bolj digitalno in odpornejšo Evropo), (EU:n talousarvio: Euroopan komissio on tyytyväinen sopimukseen 1,8 biljoonan euron paketista, jolla tuetaan vihreämmän, digitaalisemman ja kestävämmän Euroopan rakentamista), (EU:s budget: EU-kommissionen välkomnar överenskommelsen om ett paket på 1,8 biljoner euro som ska bidra till att bygga ett grönare, mer digitalt och mer motståndskraftigt Europa), (Часът на Европа: възстановяване и подготовка за следващото поколение), (El momento de Europa: reparar los daños y preparar el futuro para la próxima generación), (Chvíle pro Evropu: náprava škod a příprava na příští generaci), (Et vigtigt øjeblik for Europa: Genopretning og forberedelser til den næste generation), (Mitteilung - 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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”. 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. That’s the only relevant issue.”. … An ambitious EU long-term budget will be crucial to rebooting the economy and creating a green, digital and resilient Europe after Covid-19. That means the matter could go all the way to EU leaders — but it does not say that they would be able to block any penalties. The European Commission is expected to table proposals on the recovery fund shortly, but there are already deep divisions on, for example, whether countries should be given loans or grants. 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. EU recovery fund: Frugal Five not as frugal anymore Thursday, 26 November 2020 The leaders of the Frugal 5 at the European Council: Mark Rutte (The Netherlands), Sebastian Kurz (Austria), Sanna Marin (Finland), Stefan Löfven (Sweden) and Mette Frederiksen (Denmark), credit: EU Brussels, 22. 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. Jul, 12:00. EU breaks deadlock on budget, coronavirus recovery fund Leaders have agreed to pass the new budget and coronavirus recovery fund, including holdouts Hungary and Poland. Marta Domínguez-Jiménez contributed to this article. A quarter of spending has been earmarked for climate action and a ‘do no harm’ clause rules out environmentally damaging investments . EU leaders have agreed on a landmark 750 billion euro ($860 billion) recovery fund for the reconstruction of the region disrupted by the coronavirus pandemic.. By James Frater , CNN Business. Businesses, workers, NGOs across Europe are demanding the rapid release of money from both the EU budget and the Recovery Fund. EU inches toward landmark budget, virus recovery fund deal News. 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. contributions from the Member States based on value added tax (VAT), contributions based on gross national income (GNI). 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. Hungary’s Prime Minister Viktor Orban speaks as he arrives for an EU summit at the European Council building in Brussels, Thursday, Dec. 10, 2020. Share. EU leaders reduced the proposed budget to €1.074 trillion at their summit on 17-21 July. 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. On 13 May, MEPs called on the Commission to prepare a contingency plan to avoid disruption for farmers, companies and organisations counting on EU funds in the event that approval of the long-term budget is delayed. Brussels, 22. THE EU's recovery fund will face severe delays unless Brussels adopts a rarely used 'eurozone stabilisation procedure', a political commentator has claimed. Holding European citizens and values hostage to national ambitions in these difficult times is reckless and irresponsible. by: LORNE COOK and RAF CASERT, Associated Press . EUR 750 bn EU Recovery Fund: Deal! For the Commission to start borrowing, all Member States must ratify the new Own Resources Decision in line with their constitutional requirements. Fitch will consider the European Commission's borrowing to fund NGEU grants as debt of the EU as a supranational entity. It is not so much the size and imminent economic impact that is so consequential but rather the symbolism for European solidarity. 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. Van Overtveldt described the Commission’s Green Deal as “a start”, but warned that the proposals are “incomplete and dangerously underfinanced”. Fri 18 Dec, 2020 - 11:29 AM ET. The EU’s recovery fund proposals: crisis relief with massive redistribution. In its resolution adopted on 15 May, Parliament called for a €2 trillion recovery package to address the impact of the coronavirus. What will the mood of investors and consumers be?”, Since the outset, the EU has been mobilising all means available to help member states reinforce their health sectors and mitigate the socio-economic impact of the virus. To agree on a common document of conclusions about the next Multiannual Financial Framework 2021-2027 and the Recovery Fund, the European Council ended up last 21 July the longest Summit ever. The Commission relies on the commitment of Member States to proceed as quickly as possible, in the interest of all EU citizens. MEP Guy Verhofstadt wants the European Parliament to now deal with the shortcomings of the EU recovery deal (Photo: European Parliament) By Guy Verhofstadt. French President Emmanuel Macron, left, speaks with European Commission President Ursula von der Leyen as Hungary's Prime Minister Viktor Orban, right, speaks with Poland's Prime Minister Mateusz Morawiecki during a round table meeting at an EU summit in Brussels, … 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 … There is so much uncertainty: will there be a relapse? Paying it back will be even harder. On April 23, 2020, the European Council mandated the European Commission to work on a European Recovery Fund and to clarify its possible link with the Multiannual Financial Framework (MFF), the EU’s long-term budget. EU leaders have struck a deal on a landmark coronavirus recovery package that will involve the European Commission undertaking massive borrowing on the capital markets for the first time. The largest stimulus package ever EU strikes deal on landmark budget, virus recovery fund. 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. Parliament has also called for a large-scale recovery package to support Europe’s economy after the crisis. cohesion, agriculture, Erasmus, Horizon Europe, etc). Negotiators for the European Parliament and the Council of the EU reached the preliminary deal on the €672.5 billion Recovery and Resilience Facility (RRF) in a final push that began Thursday morning. The Commission will put forward proposals by June 2021 on sources of revenue linked to: By June 2024, the Commission will propose new sources of revenue, such as: The European Commission will start committing the funds under the next Multiannual Financial Framework (the EU long-term budget) as of 1 January 2021, following the adoption of the relevant sector-specific rules as well as of the annual budget for 2021 by the European Parliament and the Council. EU leaders reduced the proposed budget to €1.074 trillion at their summit on 17-21 July. 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. There is no more time to lose. Source: European Commission. Fitch will treat the NGEU grants as budget-neutral, in line with Eurostat's preliminary guidance on the statistical recording of the Recovery and Resilience Fund (RRF). Find open and upcoming calls for funding proposals, get background information on funding processes and programmes, and apply online. 1 of 14. NextGenerationEU is a €750 billion temporary recovery instrument to help repair the immediate economic and social damage brought about by the coronavirus pandemic. The 1.82 trillion-euro ($2.21 trillion) seven-year budget and recovery package was meant to come into effect on Jan. 1. This was the final step in the adoption process following the vote in the European Parliament on 16 December, which endorsed the MFF Regulation with a significant majority. 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).