Economic and Financial Affairs

Specifically, the Commission has assessed the plans of Belgium, Denmark, Greece, Spain, France, Germany, Italy, Latvia, Luxembourg, Austria, Portugal and Slovakia. Further assessments will follow in the coming days. This is an important step towards disbursing funds under the Recovery and Resilience Facility (RRF) to these Member States. This financing will support the implementation of the crucial investment and reform measures outlined in each Member State's recovery and resilience plan. The RRF will play an important role in enabling them to emerge stronger from the COVID-19 pandemic. The Commission assessed the plans based on the criteria set forth in the RRF Regulation. The Council will now have, as a rule, four weeks to adopt the Commission's proposals. The RRF – at the heart of NextGenerationEU – will provide up to €672.5 billion to support investments and reforms across the EU.

The award recognises actions by the EU public administration that have a visible and direct positive impact on the lives of citizens, and the Commission won with its project ‘Bringing citizens home during the pandemic', together with another project by the EEAS. The SURE instrument was awarded the prize for the category ‘excellence in citizen-focused services delivery’. Launched last year in a tangible expression of EU solidarity, SURE has been a crucial element of the EU's comprehensive strategy to protect citizens and mitigate the socio-economic impact of the pandemic. So far, it has benefitted up to a total of 30 million workers, helping keep people employed and ensuring a faster recovery from the pandemic. Through the SURE programme, the EU has already provided a total of around €90 billion to 19 Member States. President von der Leyen said: “I am delighted to shine a light on the good work of the EU administration. All EU institutions should be open and beyond reproach on ethics, transparency and integrity. This past year has tested colleagues to deliver quality services under challenging conditions, but they have risen to the challenge and delivered creative solutions. I am honoured that the Commission won the European Ombudsman Award for Good Administration”.

Keynote speakers include Ursula von der Leyen, President of the European Commission, Angela Merkel, Federal Chancellor of Germany, Jacinda Ardern, Prime Minister of New Zealand and Christine Lagarde, President of the European Central Bank. Panel discussions will look at “Post-COVID economic and social challenges”; “A green and fair recovery: when the unprecedented becomes the precedent”; “GDP with an alternative well-being indicator”; “Strategic autonomy vs protectionism: how to walk the line”; and “The Sustainable Development Goals: where we stand and where we’re going”. The full list of speakers and the programme is available on the event’s website. For the latest updates and the highlights, please register here. Join the #EUBEF21 conversation on social media and follow DG ECFIN on Twitter and Facebook for updates.

This is the largest-ever institutional bond issuance in Europe, the largest-ever institutional single tranche transaction and the largest amount the EU has ever raised in a single transaction. Thanks to very strong interest among investors across Europe and the world, the Commission obtained very favourable pricing conditions, similar to those obtained in the repeatedly successful issuances under the SURE programme. The funds will be used for the first payments under NextGenerationEU, under the Recovery and Resilience Facility and various EU budget programmes. By the end of 2021, the Commission expects to raise some €80 billion in bonds, to be complemented by short-term EU-Bills, as per the funding plan published in June 2021. The exact amount of both EU-Bonds and EU-Bills will depend on the precise funding needs, and the Commission will revise its initial assessment in the autumn.

Ministers also exchanged views on the tenth enhanced surveillance report on Greece and agreed that the positive assessment of the institutions warrants the approval of the next tranche of policy-contingent debt measures, worth 748 million euros. The International Monetary Fund (IMF) presented the outcome of its interim staff visit in the context of its article IV surveillance of the euro area. The IMF will complete its surveillance cycle at the end of the year. Ministers also discussed the functioning of the Exchange Rate Mechanism II (ERM II). The Bulgarian lev and the Croatian kuna were included in the ERM II on 10 July 2020, and Bulgaria and Croatia provided an update on the implementation of the reforms that their authorities committed to upon the start of their participation in the ERM II. Meeting in inclusive format, the Eurogroup prepared for the Euro Summit that will take place on 25 June 2021. The chair of the high-level working group briefed ministers of the 27 Member States on the progress made in preparing a work plan covering all the outstanding elements needed to complete the banking union, as requested by the Euro summit in December 2020.

The RRF will make €672.5 billion in grants and loans available for public investment and reforms in the Member States to help them address the impact of the COVID-19 pandemic, to foster the green and digital transitions and to build resilient and inclusive societies. Ministers also adopted a recommendation under the excessive deficit procedure for Romania that sets a new deadline for Romania to improve its fiscal situation for 2024. In addition, the Council adopted the recommendations on the updated stability and convergence programmes of the Member States in the framework of the European Semester 2021 and approved conclusions on the fiscal sustainability challenges arising from an ageing population. Ministers also held an important policy debate on the direction to take regarding the key elements of the VAT rates proposal and discussed the 'buy and donate' proposal. The latter proposal would allow the Commission and other EU bodies to buy goods and services required to combat certain emergencies, such as the COVID-19 pandemic, with a VAT exemption and to distribute them free of charge to Member States. The ministers also reviewed progress on banking union and financial services legislative proposals. Lastly, they approved terms of reference for the meeting of the G20 finance ministers and central bank governors that will take place from 7 to 10 July 2021.

On this occasion Presidents David Sassoli and Ursula von der Leyen and Prime Minister António Costa said: “The EU Digital COVID Certificate is a symbol of what Europe stands for. Of a Europe that does not falter when put to the test. A Europe that unites and grows when faced with challenges. Our Union showed again that we work best when we work together. The EU Digital COVID Certificate Regulation was agreed between our institutions in the record time of 62 days. While we worked through the legislative process, we also built the technical backbone of the system, the EU gateway, which is live since 1 June. We can be proud of this great achievement. The Europe that we all know and that we all want back is a Europe without barriers. The EU Certificate will again enable citizens to enjoy this most tangible and cherished of EU rights – the right to free movement. Signed into law today, it will enable us to travel more safely this summer. Today we reaffirm together that an open Europe prevails.”

Almost one in four children in Europe live in poverty according to pre-pandemic figures. In 2019, it was estimated that 18 million children in Europe are at risk of poverty or social exclusion. Moreover, compared to their better-off peers, these children are also more likely to underperform at school, have difficulty finding a decent job and suffer from poor health as adults. The global health crisis is exacerbating this situation. The Secretary-General of Eurochild, Jana Hainsworth, says that countries across Europe are reporting "significant hardships" due to the pandemic. There has been a rise in the use of food banks and family homelessness has become an issue. The European Commission's European Child Guarantee policy initiative aims to put an end to child poverty, if governments sign up for it. To break the poverty cycle, the European Child Guarantee asks EU governments to make sure every child at risk has free education, childcare, good-quality healthcare and decent housing. This also includes a healthy school meal a day and the possibility to take part in activities at school including sport – all for free. The Guarantee puts into action the European Pillar of Social Rights which aims to lift at least five million children out of poverty by 2030. Over 10,000 children and young people participated in a consultation to shape the design of the EU's Child Rights strategy and Child Guarantee.

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