EU budgetary and financial response to the coronavirus crisis

Summary:

Within the limits of its powers, the EU has acted quickly to tackle the coronavirus pandemic and its consequences. Showing considerable flexibility, EU institutions have organised a package of measures (some already decided, others proposed or requested), to counter the crisis, drawing both on the EU budget and a wider economic package.

Parliament is calling on the European Commission to propose a €2 trillion recovery package, distributed mostly through grants (over which Parliament will maintain scrutiny) rather than loans, and warns against the presentation of misleading figures. The recovery package should provide real funding to help those hardest-hit, and focus on climate mitigation, digitalisation and a new health programme. The Commission has committed to propose a comprehensive recovery plan, along with revised 2021-2027 MFF proposals, on 27 May 2020. In the meantime, France and Germany have suggested a €500 billion 'recovery fund'.