“Next Generation EU” recovery fund 

The European Commission plans to borrow €750 billion on capital markets to issue grants and low-interest loans to EU countries to kick-start a recovery from the coronavirus pandemic


Apr 23: EU leaders confirm initial rescue package
€540bn
       
May 27: Commission President Ursula von der Leyen unveils Next Generation EU plan
€750bn


Two-thirds of recovery fund will take form of grants
€500bn

Remainder will be loans
€250bn


Proposed grants (€ billions, ratio of government debt to GDP)

Italy 	81.1	Debt to GDP 134.8%
Spain 	77.3 	95.5%
France 	38.8 	98.1%
Poland 	37.7 	46.0%
Germany 28.8 	59.8%
Greece 	22.6 	176.6%
Romania 19.6 	35.2%
Portugal 15.5 	117.7%


€1.1 trillion
EU budget for 2021-27

€2.4 trillion
Fiscal firepower when €750bn recovery fund and initial €540bn are added to budget

      
Sources: European Commission, Bloomberg, Reuters 
Picture: Getty Images 
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