EU leaders approve €540 billion package of safety nets and task Commission with developing proposal for Recovery Fund
date: 24/04/2020
The leaders agreed to coordinate as much as possible to ensure a gradual and orderly lifting of restrictions. They welcomed the Joint Roadmap for Recovery which sets out important principles such as solidarity, cohesion and convergence, as well as four key areas for action: a fully functioning Single Market, an unprecedented investment effort, acting globally, and a functioning system of governance. Following the meeting of the Eurogroup in an inclusive format on 9 April, the European Council endorsed the agreement on three important safety nets for workers, businesses and sovereigns, amounting to a package worth €540 billion, and called for the package to be operational by 1 June 2020. EU leaders also agreed to to establish a Recovery Fund and tasked the Commission to present a proposal of sufficient magnitude targeted towards the sectors and geographical parts of Europe most affected. The Commission proposal should clarify the link with the MFF, which will need to be adjusted to deal with the current crisis and its aftermath. President von der Leyen stressed that the MFF’s firepower will have to be increased to generate the necessary investment across the whole European Union, and that this investment should be front-loaded in the first years and in a right balance between grants and loans.