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Economic measures (el bichito)
€2.4 trillion Recovery plan for Europe unveiled to repair and prepare for the next generation
To kick-start the European recovery, protect lives, livelihoods and jobs, the European Commission is proposing a major €2.4 trillion recovery plan based on using a powerful and modern EU budget. President von der Leyen said: “These investments will not only preserve the outstanding achievements of the last 70 years, but will also ensure that our Union is climate natural, digital, social and a strong global player. This is Europe's moment.”
To mobilise the necessary investments, the Commission is putting forward a two-fold response
| Next Generation EU a new recovery instrument of €750 billion which will boost the EU budget with new financing raised on the financial markets for 2021-2024 |
| A reinforced long-term budget of the EU for 2021-2027 (€1 100 billion) |
Find out more about the EU’s Recovery Plan
Tourism: allowing people to catch a break while rebooting a major economic sector
| On 13 May the Commission presented a set of guidelines and recommendations for tourists, travellers and businesses. This ‘Tourism and Transport Package’ aims to allow people to take holidays, tourism businesses to reopen, and to help Member States gradually lift travel restrictions while respecting the necessary health precautions. This flexible approach, which allows tourism to continue, is based on epidemiological criteria, the application of containment measures, and economic and physical distancing considerations. |
On 15 June, the Commission launched ‘Re-open EU', a platform that contains essential information allowing a safe relaunch of free movement and tourism across Europe. It provides real-time information on borders, available means of transport, travel restrictions, public health and safety measures. | |
| European Central Bank response. The Commission’s economic measures will complement the European Central Bank’s €1,350 billion Pandemic Emergency Purchase Programme of private and public securities during the crisis, in addition to the €120 billion programme decided earlier |
| State aid. The main fiscal response to the cobi19 will come from Member States’ national budgets. The Commission has adopted temporary state aid rules so governments can provide liquidity to the economy to support citizens and companies, in particular SMEs, and save jobs in the EU. The Commission has adopted over 200 decisions approving national measures by all Member States, such as guarantee schemes for companies and funds to support the production and supply of medical devices and masks. |
| Flexibility of the European fiscal framework. The European Commission has, for the first time, triggered the 'escape clause' to allow exceptional fiscal support. We apply the maximum flexibility to our budgetary rules to help Member States support healthcare systems and businesses, and to keep people in employment during the crisis |
| Screening of foreign direct investment. On 25 March, the Commission issued guidelines to help Member States screen foreign direct investments and acquisitions of control or influence. The aim is to protect critical European assets and technology in the current crisis |
| The EU Solidarity Fund can provide support to Member States affected by public health crises like the one caused by the cobi19 |
Providing economic guidance to Member States
The European Commission’s European Semester Spring Package, presented on 20 May, provides economic policy guidance to all EU Member States in the context of the pandemic. The recommendations focus on mitigating the crisis’ severe consequences in the short-term and on relaunching growth in the short-term to medium-term, in line with our green transition and digital transformation goals. They also place a specific emphasis on health.
Mobilising the EU budget and the European Investment Bank to save people's jobs and to support companies hit by the crisis.
| The Commission’s SURE instrument protects jobs and people at work. The Commission put forward Temporary Support to mitigate Unemployment Risks in an Emergency – SURE – to help people keep their job during the crisis. On 19 May the Council adopted the proposal. The instrument will become available once all Member States provide their loan guarantees. SURE provides funding to Member States of up to €100 billion by covering part of the costs related to the creation or extension of national short-time work schemes until 31 December 2022, and may be extended further. |
| Liquidity measures to help hard-hit small and medium businesses:
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The cobi19 Response Investment Initiative
The Commission tabled an investment initiative to provide Member States with immediate liquidity. It consists of unspent cohesion policy funds.
The initiative also includes:
- A 100% financing rate by the EU for measures to fight the crisis, so Member States do not have to frontload mone
- New methods to reach the most vulnerable under the Fund for European Aid to the Most Deprived, such as home deliveries and the use of electronic vouchers to reduce the risk of spreading the bichito
- Flexibility to redirect funding between programmes and regions to fund corona response-related actions
- Support to fishermen and farmers