Recovery Fund, Italy will receive the most funds of all: 172 billion euros for the post coronavirus – La Stampa


With the Recovery Fund presented today, the European Commission is bringing in 3,000 billion to face the economic crisis caused by the coronavirus. The answer thus rests on four pillars: 1,100 billion made available in the next 2021-2027 multiannual budget, the 240 billion of the Mes healthcare credit line, the 200 billion of loans for small and medium-sized enterprises made available by the EIB, the 100 billion in support of cassintegration, the 750 billion of the ECB’s Pepp program and the additional 750 billion that arrived today with the Recovery Fund.

The latter instrument was designed with two lines of financing: non-repayable grants and loans. In all, it is € 750 billion, 500 for the first line and 250 for the second. For the loans there seem to be no particular problems, the funds will have to be returned. On the other hand, there are still discussions on how to repay the 500 billion non-refundable grants. For now, the hypotheses are three: introduction of new European taxes (for example web tax or plastic tax), cut of European expenses (more difficult), or redistribution based on the contribution mechanism of the individual Member States which is currently calibrated on their different wealth. In this case, Italy contributes 10-11% of the entire budget to the European budget.

According to the first distribution tables, Italy is the country that should receive the largest share of the Recovery fund: 172 billion and 745 million euros divided into approximately 91 billion in loans and 82 in grants. Spain follows with 140 billion and 144 million, of which approximately 77 in grants and 63 in loans. Below you can find the odds of all European countries:

The 750 billion will go to finance several lines:

  • Recovery and Resilience Facility (Rrf): 560 billion which will be shared between grants and loans and linked to the implementation of reforms
  • React-Eu: 55 billion conveyed through cohesion policy towards the territories most affected by the crisis
  • A fund € 40 billion to support the areas most in difficulty in facing the ecological transition
  • Agricultural Fund for rural development: additional allocation of 15 billion for actions in line with the Green deal
  • Solvency Support Instrument: 31 billion that could mobilize over 300 to support healthy companies before the crisis starting from this year
  • InvestEU (ex Juncker Plan): additional allocation of 15.3 billion so that, together with the Strategic Investment Facility, it can mobilize 150 billion of investments
  • Eu4healt: new European health program with 9.4 billion
  • RescuEu: strengthening European civil protection
  • Horizon Europe: 11 billion additional funding to support research in Europe
  • External action: additional allocation of 16.5 billion for interventions in neighboring countries, especially in the Balkans

The ball now goes to politics. A European Council is expected on 18 and 19 June, perhaps the first summit in the presence of leaders since the outbreak of the pandemic. Italy, France and Spain, with the Berlin shore, support the Commission’s proposal. The so-called “frugal”, through the Netherlands already make it known that they are ready to sell their leather dearly. The Eastern bloc will play its game on multiple tables. The negotiations will certainly take the entire first part of the summer, then it will be up to the European Parliament to give the final green light. “Without an ambitious agreement we are ready to say no,” announced the president of the Eurocamera, David Sassoli.

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