The 27 EU heads of government agreed early on Tuesday about a recovery fund and the European multi-year budget for 2021-2027. This says:
- A recovery fund of EUR 750 billion is planned for countries that have been hit hard by the corona crisis. The fund consists of 360 billion in cheap loans and 390 billion in gifts so that countries can stimulate their economies.
- The European Commission will enter the capital market until 2026 to borrow money on behalf of the EU member states. The money must be repaid by 2058 at the latest.
- Countries using the recovery fund must submit reform plans to the European Commission. The Commission will give the green light to the aid if the plans comply.
- In exceptional cases, Member States are given the option of temporarily stopping aid via an 'emergency brake' if the conditions are not or insufficiently complied with.
- The European budget for 2021-2027 is EUR 1,074 billion.
- In the coming years, the European Union will work on increasing its own income through taxes. Plans are being developed for a tax on plastic waste, a CO2 tax and a digitax.
- The Commission is also working on extending the Emissions Trading System (ETS) to the aviation and maritime sectors and is examining the possibility of a financial transaction tax.
- Denmark, Germany, the Netherlands, Austria and Sweden (all five net contributors) receive higher discounts on their EU contribution. The bill for this will lie with all other EU countries.