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ECB calls on Brussels to make recovery fund permanent

  • europe_flag
    September 29, 2020

    The European Central Bank (ECB) has urged the European Union to consider making its new pandemic recovery fund permanent.

    The EU plans to issue €750bn of debt to support a revival of the region’s pandemic-stricken economy by distributing grants and loans to member states, a move the ECB called “an important milestone in European economic policy integration”. The scheme’s centrepiece — €390bn of grants — would provide a net benefit worth more than 10 per cent of the pre-crisis Croatian and Bulgarian economies and almost 9 per cent for Greece, the ECB estimated in a research note published on Wednesday.

    Also among the net beneficiaries are Portugal, which will gain 5.4 per cent of its 2019 GDP; Spain with a gain of 3.4 per cent of GDP, and Italy with a gain of 1.9 per cent of GDP. The scheme “ensures stronger macroeconomic support for more vulnerable countries”, the ECB said.