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The European Council agreement: truly historical


The EU countries have reached a historical agreement on the recovery fund. Debt will be issued at the EU level and the proceeds will be distributed under the form of grants and loans. Although the amount of grants has been scaled back from the initial Commission proposal, the EUR 750 bn package still represents more than 5 % of EU 2019 GDP. This will enhance the effectiveness of ECB policy. The agreement is also important from a longer term perspective. It sets a precedent that could guide policy in case of future major economic shocks. In addition, the milestones to which countries need to commit should strengthen the growth potential and contribute to the green and digital transition.


TRANSCRIPT // The European Council agreement: truly historical : July 2020

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