After months of negotiation, the European Union reached a compromise on a coronavirus-related economic recovery fund. On July 21, the European Council approved the āNext Generation EUā recovery package. Totaling 750 billion euros ($880 billion), the recovery fund will distribute 390 billion euros as grants to the hardest-hit EU members and 360 billion euros in loans conditional on countriesā progress in recovery and economic restructuring. The deal will make the EU the third-largest borrower in Europe by 2021 after Germany, France and Italy. The deal was originally proposed in May, but resistance from the EUās conservative northern members, commonly known as the āfrugal four,ā over the size and scope of unconditional aid created months of political gridlock. The revised recovery plan adjusted the ratio between grants and loans to get northern members on board, but it is still expected to make a considerable impact on vulnerable economies as Europe recovers from the coronavirus pandemic and subsequent recession.
EU Coronavirus Recovery Package
The European Council approved the 750 billion-euro āNext Generation EUā recovery package earlier this month.