EU Commission proposes aid package of 750 billion Euros

by Thorsten Koch

The EU Commission would like to provide 750 billion euros to support the economy of member states suffering from the Corona crisis. 500 billion Euros should flow as non-repayable grants. 250 billion Euros are to be granted as loans. Italy and Spain in particular have been hit by the Corona pandemic. The EU now has to take loans from the capital market that are to be repaid to lenders between 2028 and 2058.

EU Commission President Ursula von der Leyen said in the European Parliament that the crisis must be solved together and investments be made into the future. This was a crucial moment, she said. Germany and France had previously advocated a package of 500 billion Euros.

New budget framework

Von der Leyen campaigned for a budgetary framework of the EU with a volume of 1.1 trillion Euros for 2021 to 2027. The reconstruction package for 750 billion euros should is to be seen apart. The EU has already launched payments as loan aid from which short-time workers, companies, and health providers benefit. This loan support amounts to 540 billion Euros.

Von der Leyen said that common priorities within the EU must be promoted and named climate, digitization, and social tasks. The social fabric should be stabilized, the internal market protected, and finance sheets should be balanced. The EU member states must still agree to the proposal of the EU Commission.

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