On Thursday 23 April, EU Heads of State and Government discussed the various avenues for implementing a post-COVID-19 'recovery plan', including a European Commission project (see EUROPE 12473/1).
According to an internal note (https://bit.ly/2xVlb14 ), Commission President Ursula von der Leyen could set out a recovery programme worth more than €1,500 billion.
Temporary recovery instrument. The plan will be financed by a 'temporary recovery instrument' as well as by the individual resources system of the EU's Multiannual Financial Framework (MFF) for 2021-2027. This time-limited and targeted instrument, based on Article 122.1 of the Treaty on the Functioning of the EU, would allow the Union to raise €320 billion from the markets in order to finance key policies and instruments to support recovery through EU programmes. Half of this amount would then be loaned to Member States. The remainder of the loan would be used to finance the European budget and would be repaid by the Member States after 2027.
Together with other instruments, the intention would be to provide the EU with a €2 billion recovery plan.
Raise the ceilings. The plan the Commission is working on, is to strengthen the European Union's budget. This would require an amendment to the decision made regarding the EU’s individual resources, to raise the ceiling to 1.9% of EU Gross National Income (GNI) (1.2% of current GNI), at least during the most critical phase of the crisis, which could last until the end of 2022.
German Chancellor Angela Merkel would be prepared to “significantly” increase Germany's contribution to the EU budget. The EU budget would be heavily focussed on the start of the MFF period, when the crisis is most acute.
Recovery and Resilience Facility. A 'Recovery and Resilience Facility' would be set up to help Member States rebuild their economies. It would have a budget of €200 billion to help finance recovery plans of Member States.
This facility would be based on the budgetary instrument for convergence and competitiveness (BICC), a budgetary instrument specific to the euro area. €50 billion from Cohesion Policy would be reallocated in 2021 and 2022 to actions promoting the labour market, health care systems and SMEs.
Internal Market. Two other EU funds would be created for the internal market. The first would assist companies to quickly rebuild their capital. The second would contribute to building strategic autonomy into vital supply chains.
The two funds would then mobilise investments of €200 billion each. Member States could also invest in these funds in order to increase their firepower.
The European Parliament stands ready to consider the idea of a specific recovery fund if it is attached to the MFF, said Parliament President David Sassoli. (Original version in French by Lionel Changeur)