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How to finance EU economic recovery package in 2020 - BUDG Members prepare vote

15-07-2020 - 10:09
© European Union (2016) European Parliament

BUDG Members discussed the Commission proposal for a Draft Amending Budget (DAB) 6, which aims to provide EUR 11,5 billion in commitment appropriations to put into action the proposed EU economic recovery plan for Europe still this year. In particular, it proposes: - creating a solvency support window within the European Fund for Strategic Investments (EFSI) to support the solvency of companies affected by the COVID-19 crisis: EUR 5 billion;

  • reinforcing the European Fund for Sustainable Development (EFSD) to increase its capacity to grant guarantees in partner countries in response to Covid-19: EUR 1 billion;
  • setting up the new REACT-EU initiative to support operations fostering crisis repair in the context of the COVID-19 pandemic: EUR 5 billion;
  • increasing the capital of the European Investment Fund (EIF) to implement additional guarantee amounts under the EU economic recovery package: EUR 500 million.
Given that nearly all budgetary margins and availabilities for 2020 are exhausted, the Commission proposes financing the launch of the recovery package in 2020 by increasing this year's commitment ceilings for budgetary sub-headings 1a and 1b and heading 4. This DAB can only be finally adopted after the adoption of the revision of the MFF Regulation for 2020, where these increases of the ceilings are proposed.

The vote in the BUDG committee is indicatively scheduled for 31 August.