How to get money to restore the EU

How to get money to restore the EU

FINANCE

2020-07-06 10:33:00

According to the plan to restore the European Union from the pandemic, Brussels will allocate multibillion-greenback resource programs to the affected nations. But EU members ought to show that this money will now not be spent, but can be used, for example, to improve the health care system.

Presenting the plan, the European Commissioner for economy assured that citizens will now not be forced to tighten their belts, as after the 2008 disaster:

"This is not a rescue tool with certain conditions," said Paolo Gentiloni. "I know he used to be like that. But it won't be the same in the future. So this is a challenge for all of us."

The first circumstance. Member nations need to now put up country wide funding plans. The European Commission will approve those in which the priority might be the advent of green technology and the development of the virtual economic system.

German economist notes that Brussels will weaken the fight against budget deficits:

"I think the main difference from the previous financial crisis is that this time it's about investment, not austerity," Sandra Parti said. - This time, member international locations are presupposed to spend money. However, via comparing country wide proposals, the European Commission will to a point minimize waste."

The second condition is that each government should modernize the national economy and increase its stability, i.e, perform structural reforms that are sometimes unpopular.

Austria, Denmark, Sweden and the Netherlands are the least willing to accept the European Commission's plan; they have the desire to make it a topic of negotiations. These so-called "Thrifty countries"  do not want to accumulate a single European debt together with the southern countries that spent a lot.

"My guess is that the Thrifty will try to link any money spent through a recovery plan to a variety of conditions. - the German economist keeps. - They will specially require a competent economic management, revision of pension systems, this kind of thing."

Northern European countries also want  the largest return to the total budget of borrowed money. The MEP from Spain considers their thrift excessive in the current circumstances::

"I think they have two main goals, - speaks Luis Garikano. - First, they will try to reduce share of grants and increase the share of loans. And the second one is to introduce even more conditions."

At the same time, each person knows that negotiations cannot be delayed. EU countries need money now.  Governments can submit their national plans by April next year at the earliest. But then Brussels will only start handing out money to them in 2021.

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