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From what is filtering, the European Commission is preparing an EU-wide Recovery Programme anchored in her revised MFF (2021-2027 budget) proposal.

A word of caution: this paper elaborates on what we know so far, and changes might be introduced on the final Commission proposal.

What we understand

The Commission is planning to propose a revised MFF by mid-May. The main drive of the revised proposal is to generate an EU-wide Recovery Programme that would help the EU to recover from the dramatic Covid-19 crisis.

To that effect the EU would create a new Fund of 320 billion euros, by raising that money in the financial markets against guarantees provided by the Member States. That money would then be used by beneficiaries to raise more money from the markets, the expected total in the Commission estimates could reach 1.5 trillion euros.

The Commission is also planning to propose to front-loading part of the 2021- 2027 budget.

It is not clear which part of the new Recovery Programme will consist of loans, and which part of grants, although the realistic expectation is that most of it will consist on loans. Loans and grants would be made conditional on the implementation of reforms and investment measures to bolster potential growth.

The Recovery Programme will focus on relaunching investments. A small part could be used to restoring capital of viable companies.

The other elements of the MFF proposal will not be changed, as considered “fit for purpose”. This seems to include the CAP budget and the related commission’s proposals.


full note available on FE Members’ area