How EU recovery fund will work
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The EU’s green light to a temporary €750 billion recovery fund financed for the first time by joint debt will allow the 27-nation bloc to channel grants – via the EU budget – to boost an economic rebound
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EU budget (2021-2027)

€1,074.3bn Multiannual Financial Framework (MFF)

Total €1,824.3 billion

€360bn Repayable loans 

€312.5bn Grants

€750bn Raised on financial markets

€77.5bn Grants to be used to top up other EU programmes
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New MFF: First budget proposed by President Ursula von der Leyen’s European Commission

1 Plan: Each country must draw up proposals showing how they will use grant in national recovery plan

2 Formula: Grants to be calculated using formula that balances population and jobless rate of each member state with economic damage caused by pandemic. Grants will apply to years 2021-23

3 Approval: Request for grants must be approved by 15 of 27 members – representing 65% of total EU population

4 Payback: Member states to agree roadmap to new environmental levies and digital taxes – dubbed Own Resources – to pay back all liabilities by end of 2058

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EU’s surging debt to reach €904 billion

€54bn  Outstanding euro-denominated bonds

€750bn Next Generation EU recovery fund

€100bn EU to borrow €100bn to fund its SURE* unemployment scheme

*SURE: Support to mitigate Unemployment Risks in an Emergency
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Sources: EU Law Live, Politico, Reuters Picture: Getty Images © GRAPHIC NEWS