European Union has proposed a major plan of economic recovery after the Covid-19 pandemic. The policy is aimed at a “sustainable, even, inclusive, and fair” redevelopment of all member countries. The proposal worth €750 billion (₹62 trillion or $825 billion) was announced by EU president Ursula von der Leyen to help countries come out of this “unprecedented crisis”.
Reaction within EU
Just after the announcement, the humongous EU package received positive reviews from various member states. The Spanish government saw this as a great proposal, serving “many of Spain’s demands.” The country will receive a total of 140 billion, of which 63 billion would be in the form of loans.
French President Emmanuel Macron asked to act fast to implement this. “We need to proceed quickly and adopt an ambitious agreement with all of our European partners,” the tweet reads.
What will the package look like?
With the size of this package, comes the question of its implementation. Well, this is quite simple. Like most of the financial packages, this will also be made up of grants and loans. Mrs Leyen said the package consists of €500 billion in the form of grants and the rest €250 billion in the form of loans. Although almost all 27 countries have been devastated by the recent Coronavirus pandemic, southern nations’ conditions are even severer.
Europe’s course of action
There is no denial in the fact that Europe is capable of dealing with any form of financial crisis. It is the second largest economic market in the world with $16 trillion of GDP in nominal term. The fund will have a positive impact on the European Integrity that has been under radar after China has been seeking its presence in the continent with the divide and rule policy. Today, China has been facing huge backlash in Europe and worldwide, putting its larger economic plans in disarray.