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Published on Friday, July 31, 2020

Europe | A new generation of policies for a new EU

On July 21, the Council of the European Union adopted the Next Generation EU (NGEU) Recovery Plan, worth EUR 750 billion, for the coming years. It is equivalent to 5.4% of the EU's GDP, and almost EUR 1700 per capita.

Key points

  • Key points:
  • Although member states began quite far from one other, that did not prevent an agreement from eventually being reached.
  • The criteria for sharing the funds are highly redistributive, which will benefit countries with higher unemployment rates and where the fall in GDP will be sharper.
  • This is the first time that the EU has designed a stabilization mechanism in a time of crisis.
  • It also provides financing for projects through the issuance of long-term joint debt, to be paid not before 2027 and no later than 2058.
  • The agreement is even more important for Spain, insofar as it is one of the countries that may potentially benefit most from this plan.

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