Written by Clare Ferguson, Marianna Pari, Stefano Spinaci (updated on 24.06.2020),
Within the limits of its powers, the EU has acted quickly to tackle the coronavirus pandemic and its consequences. Showing considerable flexibility, EU institutions have organised a package of measures (some already decided, others proposed or requested), to counter the crisis, drawing both on the EU budget and a wider economic package. Parliament called on the European Commission to propose a €2 trillion recovery package, distributed mostly through grants (over which Parliament will maintain scrutiny) rather than loans, and warned against the presentation of misleading figures. The recovery package should provide real funding to help those hardest-hit, and focus on climate mitigation, digitalisation and a new health programme. On 27 May 2020, the Commission proposed a comprehensive recovery plan – ‘Next Generation EU’ – a new recovery instrument of €750 billion to boost the EU budget with new financing raised on the financial markets for 2021-2024, along with a revised multiannual financial framework of €1 100 billion for 2021-2027.
Read the complete briefing on ‘EU budgetary and financial response to the coronavirus crisis‘ in the Think Tank pages of the European Parliament.