Economics International Relations Prelims cum Mains Summit & Organizations

EU unveils €750 billion economy rescue plan

The News:

  • European Union leaders has proposed an $825 billion (€750 billion) coronavirus rescue plan to bankroll recovery efforts after the coronavirus crisis.

 

About: European Union

  • The EU is an economic and political union involving 27 European countries.
  • It allows free trade, which means goods can move between member countries without any checks or extra charges.
  • It also allows free movement of people, to live and work in whichever country they choose.

European Union: Definition, Purpose, How It Works, History

Background:

  • The global coronavirus outbreak has already pushed the EU into its deepest ever recession.
  • The plan comes following big pressure from Italy and Spain, which are Europe’s first victims of the outbreak and too burdened with heavy debts to alone rebuild their economies.

 

News Summary:

  • The European Union (EU)’s executive has unveiled a €750 billion plan to prop up economies in the blow seriously hurt the coronavirus (COVID-19) crisis.
  • Under the proposal, the European Commission would borrow the funds from the market and then disburse two-thirds (€500 billion) in grants and the rest (€250 billion) in loans to help deal with the unprecedented slump expected this year due to the coronavirus lockdowns.
  • Much of the money will go to Italy and Spain, the EU nations worst affected by the pandemic.
  • Germany and France have jointly endorsed the plan.
  • The proposal was unveiled as the EU leaders agreed that if they fail to rescue economies now, they will see a situation worse than that of the 2008 financial crisis that threatened to break up the eurozone.
  • The recovery fund package comes in addition to the EU’s long-term budget for 2021-27, which the Commission proposed should be set at €1.100 trillion ($1.21 trillion).
  • However, the proposal could still be blocked by more frugal northern nations like Netherlands, which wants to see the recovery package comprise only loans, and not grants.
  • The newly unveiled fund will be linked to the EU’s long term 2021-2027 budget and both must be adopted unanimously by the 27 member states and ratified by MEPs (Members of European Parliament).

Aspects of the plan:

  • Grants:
    • If member states accept the deal as drafted, Italy would receive €81.8 billion in direct aid over the next three years, and €77.3 billion would go to Spain.
    • In all, the EU would offer grants of €405 billion, with €28.8 billion going to Germany and 38.7 billion to France.
  • Loans:
    • In addition, the countries would get loans, with Italy receiving credits for €90 billion and Spain 31 billion.
  • If passed, the proposal would be the biggest EU stimulus package in history and could see Europe-wide taxes on plastics, carbon emissions and big tech.

 

       
 Appointments 📯

Articles In News 📰

Award Game

Committee Game

Days Celebrations

Diseases In News 🙀

 Exercise in News 🛳

Festival Game

GI Tag Game

Institutes In News 🏩

Institution Game

One Liner GK

 Places in News 📰

Ranking Game

Report Game 📰

Schemes 📁

Space Program 🚀

Species In News 🐩

 State Dignitaries

Terminologies In News

Theme Game

Tribes In News 🧒

Various Projects/missions in News 📂

Web/App Game 📹

       

 

Wish you a very Good luck 🤞

 

 

     PT 2021 | SSARP Education Pvt Ltd. | All rights are reserved |

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: