COVID-19: EU Parliament Votes For One Trillion Euros Worth Of Recovery Bonds As Union Discusses Reconstruction of Member States’ Economies
The European Parliament has taken a historic decision in light of the struggling economies of its 27 member states – the approval of one trillion euros worth of recovery bonds.
The resolution, which was voted in by a clear majority, promises to support the reconstruction of the Union’s economies, struggling amid pandemic-induced lockdowns.
Whereas certain member states are wary of euro bonds that entail mutualised debt, these recovery bonds promise something more, future investment.
However, the parliament’s decision is not binding. It does add pressure on the Council to create other instruments to channel necessary finance to facilitate the bloc’s recovery.
The resolution comes before the next European Council next week, when Europe’s leaders will continue to discuss measures to over-come the economic crisis in wake of COVID-19.
What has the EU done so far?
The European bloc continues to budget recovery funds for the 27 member states.
In March, MEPs approved The Corona Response Investment Initiative, allocating €37 billion for the EU’s healthcare systems, small and medium-sized firms and other parts hit hardest by the pandemic.
An extension of the EU Solidarity Fund will free up €800 million for states to use in 2020, and yesterday, a further €3 billion was approved to support national healthcare systems in fighting the pandemic and providing medical services to patients in need.
Yesterday the Union continued to discuss a unified response to ease lockdown measures, as President of the EU Commission von Layden highlighted the essential role of the EU budget, calling it “the mothership of our recovery.” She spoke of the need for a new ‘Marshall Plan’, referring to the programme that helped rebuild European countries’ economies after the Second World War.
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