The guardians of the European Union’s new 750 billion-euro ($827 billion) recovery plan will have to avoid some big pitfalls to ensure their grand show of unity doesn’t fail.
Economists have largely praised the move to get the bloc back on its feet again after the coronavirus pandemic, while warning that it needs to be implemented quickly. It has to achieve the dual task of reviving output and strengthening the EU’s ability to ride out future storms.The recovery plan addresses a gaping hole in Europe’s structure that left it more vulnerable than other advanced economies during the pandemic: a common fiscal policy to complements the monetary role of the European Central Bank.
It’s groundbreaking in its size -- on top of another 540 billion-euro package announced earlier and the Commission’s planned budget of 1.1 trillion euros. It’s also remarkable for how much will be handed out as grants, and that it’ll be backed by jointly issued debt. It may have saved the union from yet another debt crisis or even collapse.The commission proposal includes elements that could allow for speedy delivery of cash to those in need, such as a 560 billion-euro Recovery and Resilience Facility and another 55 billion euros for “key crisis repair measures and support to the most deprived.”
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