Parliament: EU27 need €2 trillion recovery package to tackle COVID-19 fallout

covid paramount

(Nick Bolton, Unsplash)

This article is brought to you in association with the European Parliament.


In a resolution on the post-2020 EU budget revision and economic recovery plans, MEPs demand a robust package, focused on citizens’ needs and building on the EU budget.

The resolution was adopted on Friday by 505 votes in favour, 119 against and 69 abstentions.

“European citizens must be at the heart of the recovery strategy”, MEPs stress, adding that Parliament will stand firm in defending citizens’ interests. The recovery efforts must have a strong social dimension, addressing social and economic inequalities and the needs of those hardest hit by the crisis.

Parliament insists that the new “recovery and transformation fund” must be of €2 trillion in size, be financed “through the issuance of long-dated recovery bonds” and be “disbursed through loans and, mostly, through grants, direct payments for investment and equity.” They urge the Commission not to use “dubious multipliers to advertise ambitious figures”, and not resort to “financial wizardry”, as the EU’s credibility is at stake.

Recovery investments must be added on top of MFF-financed programmes

The recovery plan must be provided on top of the next Multiannual Financial Framework (MFF), which is the EU’s long-term budget, not to the detriment of existing and upcoming EU programmes, MEPs warn. In addition, they insist that the MFF must be increased and underline that Parliament will use its veto powers if EP demands are not met.

The recovery money “should go to programmes within the EU budget”, to guarantee parliamentary oversight and participation. Parliament must also be fully involved “in the shaping, adoption and implementation of the recovery fund”. They warn the Commission to refrain from “any attempt to design a European recovery strategy that is outside the community method and resorts to intergovernmental means.”

Plan must focus on priorities under the Green Deal and digital agenda

The “massive recovery package”, which MEPs demanded already in their recent April resolution, must last long enough to tackle the “expected deep and long-lasting impact of the current crisis”. It must “transform our economies” by supporting SMEs, and “increase job opportunities and skills to mitigate the impact of the crisis on workers, consumers and families”. They call for investments to be prioritised according to the Green Deal and the digital agenda and insist on the creation of a new standalone European health programme.

EU revenue reform becomes vital

MEPs reiterate their call for the introduction of a basket of new “own resources” (sources of EU revenue), so as to prevent a further increase of member states’ direct contributions to the EU budget to meet the needs of the MFF and the Recovery and Transformation Fund. As the ceiling for the EU revenue is expressed in GNI, which is expected to drop significantly due to the crisis, MEPs also call “for an immediate and permanent increase of the Own Resources ceiling.”

Background

The European Commission is expected to submit soon a proposal for a revamped MFF and recovery fund to take account of the health crisis and its consequences.

As the current long-term EU budget runs out on 31 December 2020, the EU needs a new budgetary planning horizon for the next seven years. The EU Commission thus presented plans for the next MFF for 2021-2027 in May 2018. The European Parliament adopted its position in November 2018, and re-confirmed it in October 2019. The Council has not yet been able to agree on a position.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

ECB doesn’t dare touch Eurozone’s big banks

How traditional Islamic giving can play a role in the future of aid

Coronavirus: a Disease that spreads as fastly as its fake news

How can the EU hit net-zero emissions?

This is what you need to know about the Iran nuclear deal

Food choices today, impact health of both ‘people and planet’ tomorrow

A silver bullet won’t solve a green problem

To build back better, we must reinvent capitalism. Here’s how

25 years after population conference, women still face challenges to ‘well-being and human rights’, says UN chief

Remote working and online shopping could drive 14 million cars off US roads – permanently

Paris agreed with Berlin over a loose and ineffective banking union

Under fire, UN refugee agency evacuates 135 detained in Libya to Niger

India’s 1.3 billion residents start 21-day lockdown – Today’s coronavirus updates

Tackling the toxic norms that hold women back in Asia

Medical students of today, technological doctors of tomorrow

US-China trade war: Washington now wants control of the renminbi-yuan

New rules to help consumers join forces to seek compensation

Most leaders are missing this crucial character trait

Elections in Britain may reserve a surprise for May’s Tories

Understanding and demystifying the new outbreak of Coronavirus

Car industry: New rules on cleaner and safer cars start to apply across Europe

Independent rights experts sound alarm at Iran protest crackdown, internet blackout

Financial abuse of elderly ‘rampant, but invisible’, says UN expert

Fisherwomen of Lake Chad show optimism in face of multiple challenges

As many as 330,000 displaced by heavy fighting in south-west Syria – UN agency

Building climate resilience and peace, go hand in hand for Africa’s Sahel – UN forum

Rising inequality affecting more than two-thirds of the globe, but it’s not inevitable: new UN report

The Indian case: health policies need to keep pace with public health literacy

Are we at risk of a financial crisis? Our new report takes a look

Welcome to the COVID-19 era of world sport

Berlin vies for a Germanic European Central Bank

Easing ‘classroom crisis’ in Côte d’Ivoire, brick by (plastic) brick

Eurozone: Despite anemic growth and shaky banks marks record trade surplus

Coding in Namibia: UN supports young women’s computing career dreams

Joint EU-U.S. statement following the EU-U.S. Justice and Home Affairs Ministerial Meeting

How India is solving its cooling challenge

Mergers: Commission opens in-depth investigation into proposed acquisition of DSME by HHIH

Companies that put employees first perform better

‘We can use this as an opportunity’ – Ngozi Okonjo-Iweala on how African nations can recover after COVID-19

We had the hottest June ever this year – this is what happened around the world

6 ways travelling professionals can cut their carbon footprint

Rare earths are the new battlefront in the US-China trade war. But what are they?

Preparing for developing countries the ‘Greek cure’

EU trade agreements: delivering new opportunities in time of global economic uncertainties

EU Commission closer to imposing anti-dumping duties on Chinese solar panel imports?

MEPs choose Wiewiórowski to be the EU’s data protection watchdog

The Great Reset after COVID-19 must put people first

FROM THE FIELD: Malawi farmers diversify to fight climate change

Facebook has built an AI-based tool that fixes the social network when it crashes

Ten reasons to be optimistic in 2019

Facebook wins EU approval for WhatsApp acquisition; just a sign of the times

Syria: UN Humanitarian Coordinator calls for unimpeded access from within the country

3 ways to ensure the internet’s future is creative, collaborative and fair

West Bank: ‘imminent’ demolition of Palestinian village could be ‘war crime’ – ICC Prosecutor

Intergenerational, intercultural, interactive – The 2015 edition of JADE’s Generations Club: Transforming Europe into an entrepreneurial society

Coronaviruses: the truth against the myths

Burundi election countdown amid ‘deteriorating’ human rights situation

EU security and defence industry prepares positions for ‘producers’ and ‘customers’

Russia must urgently step up fight against foreign bribery

IMF: European banks do not perform their duty to real economy

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

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