Radar NextGeneration #2: “A public-private commitment to the recovery”

The economic and social consequences of the coronavirus pandemic are reaching historic proportions. The European Union and its Member States have been forced to adopt emergency measures to protect citizens’ health and prevent the economy from collapsing. Even before the health crisis is over, it is necessary to tackle the economic and social crisis and lay the foundations for the growth and prosperity of the next generation.

To this end, beyond the measures implemented at national level and the resources mobilised through the European Central Bank, the European Investment Bank and the recently created SURE fund to finance internal flexibility and job retention measures (500 billion euros between the three), on a proposal from the European Commission, the European Council approved in the early hours of last Tuesday a far-reaching package of measures combining the future multiannual financial framework (MFF) —worth 1,074.3 billion euros— and specific post-COVID-19 recovery measures under the «Next Generation EU» Fund. With 750 billion euros, 70% of which will be disbursed between 2021 and 2022, this fund has been created to boost convergence, resilience and transformation in the European Union (140 billion for Spain, equivalent to 11% of our GDP).

To obtain these funds, according to the conclusions approved last Tuesday, Member States must draw up national recovery and resilience plans setting out the programme of reforms and investments of the Member State concerned for the 2021-2023 period.

The Commission will assess these plans within two months of their submission, on the basis of their consistency with the country-specific recommendations issued by the Council under the macroeconomic coordination procedure known as the European Semester, as well as their contribution to economic growth, job creation, economic and social resilience, and their effective contribution to the green transition and digital transformation.

This article was previously published in Expansión.

Read the full article at this link.

Download Radar Next Generation EU #2, published on 12 March 2021, with more content of interest.