The European Commission’s chief, Ursula von der Leyen, unveiled on Wednesday a new instrument worth €750 bn to finance the bloc’s recovery from the Coronavirus crisis.

Addressing MEPs in the European Parliament’s plenary session, the European Commission’s chief said: “This is about all of us. And it is way bigger than any of us. This is Europe's moment. We see the economic, fiscal and social fall-out across our Member States. Divergences and disparities widen. Complex questions of sovereignty and burden-sharing have to be balanced.”

She went on to say: “In our Union, people, business and economies depend and rely on each other. In our Union, cohesion, convergence and investment are good for all. And in our Union, we know that the boldest measures truly are the safest for our future. This is why the Commission is today proposing a new recovery instrument, called Next Generation EU – worth EUR 750 billion. It will sit on top of a revamped long-term EU budget of EUR 1.1 trillion. Next Generation EU - together with the core MFF - sums up to EUR 1.85 trillion in today's proposals. It goes alongside the three safety nets of EUR 540 billion in loans, already agreed by Parliament and Council. In sum, this would bring our recovery effort to a total of EUR 2.4 trillion.”

“The money will be raised by temporarily lifting the own resources ceiling, to allow the Commission to use its very strong credit rating to borrow money on the financial markets,” she added. (ILKHA)