Repair and Recovery package availed by the EU for post-COVID-19 phase
On the 3rd of June 2020, the European Commission proposed modifications to its annual budget to make €11.5 billion for crisis repair and recovery available already in 2020. Once available, the funds will go to the regions most in need, and support businesses also outside European Union borders. The proposal is a technical follow-up of the major recovery plan that the European Commission put forward in May 2020, consisting of a new recovery instrument called the Next Generation EU, embedded within a powerful, modern and revamped long-term EU budget.
As part of the plan, the European Commission has proposed to raise €750 billion on the markets and channel them to the EU recovery. To bridge the period until ratification of the amended Own Resources Decision, and make much needed funding available to workers, businesses and Member States already in 2020, the Commission proposed last week to adjust the current 2014-2020 long-term budget in order to allow for higher spending still in 2020. This proposal comes on top, making sure that the additional €11.5 billion for REACT-EU, the Solvency Support Instrument and European Fund for Sustainable Development (EFSD) will become available as early as possible this year.
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