EU leaders approve €540 billion in economic assistance programme

This program will be launched on June 1.

EU leaders approve €540 billion in economic assistance programme

Leaders of the 27 member states of the European Union (EU) have approved the €540 billion emergency aid program for the European economy, which will be launched on June 1. This was stated by the head of the European Council, Charles Michel, at a press conference on Thursday following the online summit.

“We have approved a €540 billion programme, which will start operating on June 1”, –  he said.

The leaders of the European Union member states instructed the European Commission (EC) to develop parameters for the future long-term fund for the recovery of the European economy, which was affected by the coronavirus pandemic.

“We all agreed that the issue of establishing a recovery fund is urgent. We asked the European Commission to analyse the needs [of countries and sectors] and make proposals”, –  he said.

According to Michel, the fund will support the countries and sectors that were most affected by quarantine measures during the Coronavirus pandemic. At the same time, he did not name specific amounts. Germany, the Netherlands and a number of other countries are opposed to the issuance of pan-European securities, so-called coronabonds, which would allow to attract money under the general guarantee of all countries in the community.

Before the summit, the chairman of the Eurogroup, Mariu Sentenu, called on the EU leaders to complete as soon as possible the agreement on a long-term European economic recovery fund, which should complement the short-term €540 billion economic recovery programme created by the European Commission, the European Investment Bank and the European Stability Mechanism (ESM, the euro zone’s Stabilization Fund). Sentinou warned that help to the economy is needed as soon as possible to ensure that the recovery begins.

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