The Proposed Fund
The European Commission President, Von Der Leyen will propose a major recovery fund on Wednesday. Furthermore, the fund will be between €500bn-€1 trillion. The 27 nation economies across the EU bloc are severely affected by the coronavirus pandemic.
Many nations in the south of EU bloc had big debts before the pandemic started. Moreover, Germany has backed calls for the money to be raised in the capital markets. The recovery plan will not proceed unless all the 27 EU nations agree to the back of the recovery plan.
Furthermore, Austria, Netherlands, Denmark, and Sweden have rejected the cash handouts idea to relatively poorer countries rather than low-interest loans.
What does Mrs. Von Der Will say?
She will give details about the recovery instrument. Furthermore, Mrs. Von will tell how the plan will be adjusted in the EU’S 2021-27 budget. According to the BBC, the funds will be paid out in the form of grants and loans.
Mrs. Von will tell how the avoiding members will not have to pay the extra money and be beneficial from the recovery fund. The money will be raised in the financial markets and will be paid back. The duration will be of 30 years.
Some EU-2 wide-taxes may be imposed on multinationals, CO2 emissions, and plastics. However, it is not official yet. Moreover, the budget will be equipped with increased firepower.
This will generate massive investment at a large scale and revive all the fallen economies in EU bloc.
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What Do Member States Say?
Most of the states have agreed with the recovery plan. The coronavirus pandemic has ruined everyone’s economy. Therefore, they are in for any financial recovery plan that will revive their economy again. The meeting will be held this Wednesday and will decide the final decision of the EU bloc.