• Coronavirus, Angela Merkel at the Bundestag: "European solidarity but eurobonds are not a suitable tool"

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April 23, 2020A plan consisting of several financial instruments to generate 2,000 billion euros of investments, loans and expenses destined to boost the economy of the European Union after the deep contraction caused by the Coronavirus crisis. These are the main lines on which the Ursula von der Leyen Commission is working, according to an internal document which the AGI came into possession of. The document has been prepared in recent weeks but, according to Commission spokesman Eric Mamer, has not received approval from von der Leyen or his cabinet.

The president "will present the main lines of her proposal on how to move forward for the shoot during the leaders' video conference," said Mamer. But the document - as we learn - contains some of the guidelines and elements that von der Leyen will present to today's European Council.

The draft plan consists of several instruments, including the creation of a Recovery Instrument which, on the basis of Article 122 of the Treaty, should allow the Commission to issue debt of up to 320 billion euros on the markets. Half of these resources - according to the document - should go to finance loans to Member States.

The other half should be used for direct appropriations through the EU budget. Member States would be called upon to repay loans after 2027 with a very long time horizon. Furthermore, it is not excluded that part of the debt can be paid through new own resources.

The draft plan foresees another 200 billion from the EU budget to help finance national recovery plans, in particular through the budgetary instrument for convergence and competitiveness that had been proposed for the euro area.

Finally, the Commission should anticipate the 50 billion euro disbursement of cohesion policy in 2021 and 2022 to generate 150 billion of expenditure with national co-financing for the labor market, health and SMEs.