By Fotis Siokis,

As a great leap of solidarity, the European Commission unveiled on Wednesday, May 27^th, the “Next Generation EU” recovery fund plan equal to  $ 825 billion (€750 billion).  Of this amount, nearly $ 550 billion will be in the form of grants and the rest will be made up of loans. The funds would be disbursed to 27 EU countries, through an application process, in order to help and whether the recession caused by the pandemic.  European Commission will raise the fund by borrowing from the financial markets with very favorable terms since it enjoys a AAA credit rating. Next Generation EU plan will be included in the long-term EU budget, increasing the total for the 2021-2027 period to €1.85 trillion.

“Europe’s moment: Repair and prepare for the next generation.” Read more in the European Commission website. 

“European Union Plans $2 Trillion Coronavirus Response Effort.” Read more in the WSJ website.