European Commission President Ursula von der Leyen will present to the European Parliament this afternoon the draft seven-year budget of the European Union, a key part of which will be a comprehensive plan to support the economies affected by the coronavirus crisis.
In anticipation of the deepest economic downturn in the Union’s history, the Commission wants to reach an unprecedented solution. Brussels wants to distribute around € 1 trillion in aid to the Union’s country in the form of direct payments and loans. According to previous statements by EU officials, it wants to borrow at least half a trillion euros on the financial markets and guarantee budget revenues for the period 2021 to 2027.
The executive was supported by the leaders of the most influential duo of Germany and France, who want to distribute a substantial part of this amount in the form of direct payments, which would help the most affected southern European countries such as Italy and Spain. On the other side are the countries of the so-called saving four, ie the Netherlands, Austria, Sweden and Denmark, which are afraid of joint indebtedness and want to distribute emergency funds through loans.
Brussels will give member states the choice of whether the EU budget will strengthen money from the sale of emission allowances, a digital tax, customs duties on imports of non-organic products or other fees. If none of these proposals passes, the Commission will be forced to substantially increase the direct payments of the Member States, which are currently the main source of the Union budget.
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