European Union agreed on a plan to rescue the European economy

European Union agrees on a groundbreaking coronavirus stimulus package

European Union agreed on a plan to rescue the European economyEuropean Union agreed on a plan to rescue the European economy

After nearly five days of intense discussions, EU leaders agree on a € 750bn ($ 858bn) economic stimulus plan to help rebuild the Euroblock after the coronavirus crisis.

Deal will focus on providing financing in four main areas: creating reforms, helping businesses, introducing new measures to reform the economy in the long term, and investing to protect against «future crises». Countries will receive hundreds of billions of dollars in grants and loans.

The agreement was reached after several days of difficult negotiations, which have been described as one of the most acute differences in recent years..

«We did it! Europe is strong. Europe is one. This is a good deal, and most importantly, it takes effect immediately.», – the President of the European Council said at a press conference on Tuesday Charles Michel

The Commission also agreed on a core budget of € 1.1 trillion ($ 1.3 trillion) for the period 2021-2027. Thus, the total amount of appropriations for stimulating the economy will be about 1.8 trillion euros ($ 2 trillion).

French President Emmanuel Macron named the deal «a historic day for Europe», and the prime minister of Belgium Sophie Wilmes stated that «The EU has never before dared to invest so ambitiously in the future».

COVID-19: EU’s plan to save the economy

It is worth noting that some of the terms of the deal were particularly controversial. but the agreement was reached just hours after Michel presented a new proposal to political leaders.

The European Union is grappling with the pandemic-driven recession, and the hardest hit countries like Italy and Spain are in urgent need of new economic aid worth hundreds of billions of dollars.

Prior to that, every previous proposal had been rejected due to deep disagreements over the total size of the recovery fund, the amount of assistance provided in the form of grants or loans, and the conditions.

Earlier this month, the European Commission said it expects the EU economy to contract by 8.3% in 2020, which is significantly worse than the 7.4% decline forecast two months ago..

EU senior leadership meeting is the first major gathering of world leaders since the pandemic began.