The economic recovery funded by recovery fund.
The European Union Commission has, in fact, announced the issuance of joint bonds as of this year, with the aim of increasing the resources for grants and loans to countries under next generation.
Almost 80 billion of bondsor the issuance of joint debt securities. A historic step for the Union, giving a tangible start to recovery fund. the details.
80 billion bonds to finance recovery fund: EU declaration إعلان
The EU Commissioner in charge of Budget and Administration, Johannes Hahn, announced on 1 June the issuance of EU bonds to finance the relaunch of Europe:
“Around 80 billion euros of long-term bonds By using additional short-term European bills this year, we will be able to cover the most urgent needs of member states and move them towards a sustainable recovery and a green, digital and resilient Europe.”
Specifically, this is the first step in the financing scheme put in place by Brussels to ensure that the grants and loans requested under the recovery fund.
As stated on the authority’s institutional page, in fact: “To finance NextGenerationEU, the European Commission, on behalf of the European Union, will obtain loans in the financial markets at more favorable rates from several member states and redistribute the amounts.”
The collection of these resources can therefore begin, bearing in mind that all Member States have agreed to the method with national ratifications (a condition, the latter, necessary to start the financial process).
At this point, in September, the commission will update itself in order to have a clearer understanding of the state’s resource needs and intervene in the matter of more bonds.
Note that NextGenerationEu will have a value 750 billion euros, which will be offered in bonds at 2018 prices (800 billion euros at current prices).
Through this process, the EU’s debt will average around €150 billion per year during the middle of 2021-2026.
L ‘European UnionThus, it will become one of the largest entities for issuing debt in euros.