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"Historical". This is how Emmanuel Macron described, on Monday, the agreement signed by the 27 European heads of state at the end of a marathon of negotiations of four days and as many nights. In total, this plan counts 750 billion euros in the form of subsidies and debts contracted jointly by the 27 to revive the European economy, hard hit by the coronavirus crisis. But how is this money going to be injected into the economy? And how will it be reimbursed? Europe 1 takes stock.
Payments to States on files
What must be understood is that there are several parts to this European plan. The most important is what is called the stimulus and resilience instrument, i.e. an envelope of 312 billion euros. This money, which represents the bulk of the subsidies, will be paid directly to the States. But not just any old way.
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By the fall, the capitals will have to prepare their case, that is to say the details of their national recovery plan. They will then submit them to the European Commission, which will distribute the envelope among the 27 according to several criteria, in particular the unemployment rate in the last five years or the fall in GDP due to the crisis. Payments will be made in installments, over several years. France, it expects 40 billion euros, or 40% of its national recovery plan.
European reimbursement over 40 years
Regarding the control of the use and reimbursement of funds, everything rests with the European Commission. It is she who will judge whether the plans correspond to common objectives, for example whether they provide for a greening of the economy or investments in digital technology. Each time a tranche of money is disbursed, Brussels will verify that the States have done what they announced. All of the 27 will also have the right to monitor what is done elsewhere, in Paris or Rome for example, but without the possibility of vetoing it.
A priori the money should not be reimbursed by the direct beneficiaries. But the 750 billion loan will have to be by the European Union at one time or another. It will be very long, over almost 40 years. The idea is for Europe to put in place its own taxes to reimburse, such as a carbon tax at borders or a tax on plastic. It is planned to put them in place over three years. If this succeeds, it would be, after this unprecedented stimulus plan, another great novelty.