Ska EU¨få åtta tusen miljarder att sätta sprätt på?

European Commission is proposing to create a new recovery instrument, Next Generation EU,

Next Generation EU of €750 billion as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the total financial firepower of the EU budget to €1.85 trillion. [19.000 miljarder kronor]

allowing the Commission to use its strong credit rating to borrow €750 billion on the financial markets. This additional funding will be channelled through EU programmes and repaid over a long period of time throughout future EU budgets – not before 2028 and not after 2058. To help do this in a fair and shared way, the Commission proposes a number of new own resources. In addition, in order to make funds available as soon as possible to respond to the most pressing needs, the Commission proposes to amend the current multiannual financial framework 2014-2020 to make an additional €11.5 billion in funding available already in 2020.

new Recovery and Resilience Facility of €560 billion will offer financial support for investments and reforms, including in relation to the green and digital transitions and the resilience of national economies, linking these to the EU priorities.

Brussels IS the problem' EU warned of 'moral hazard' as €750 billion rescue fund unveiled

BRUSSELS is becoming the cause of, rather than the solution to, Europe's problems, a German former MEP and economist has said after the bloc unveiled its eye-watering 1.1 trillion euro budget, plus a 750 billion euro plan to prop up economies hit by the coronavirus pandemic.

Hans-Olaf Henkel warned the crisis was now being used by Italy and Spain as a way of getting countries in the north to pay their debts and also said the budget emphasised just how much the bloc missed the UK's input after Brexit. Proposals outlined today, which could still be blocked by member states, would see the European Commission borrow the funds from the market and then disburse two-thirds in grants and the rest in loans to cushion the unprecedented slump expected this year due to the coronavirus lockdowns. Much of the cash would go to Spain and Italy, the two European countries hardest hit by COVID-19.

The 750 billion euro recovery fund package comes in addition to the EU's long-term budget for 2021-27, which the Commission proposed should be set at 1.1 trillion euros

"The Lisbon Treaty clearly demands 'subsidiarity' to be the guiding principle of the European Union.

"The budget proves that Brussels wants the opposite: ever more power."

He said: "We do not need billions of euros to build new plants, shops, trains, planes or restaurants.

"Rather we must make sure they are being used again. Here, of course some spending to stimulate consumption may be necessary, but please not via Brussels.

"That should be decided by each country according its own situation and its own priorities."

Hinting at serious divisions further down the line, he added: "The Corona crisis is now being used by some countries like Italy, Spain and France to get others like Germany, The Netherlands, Austria, Sweden and Denmark to help pay their debts.

Den jättelika räddningsfond som EU-kommissionen föreslår bryter flera tabun. Det skriver Ferdinando Giugliano i en analys för Bloomberg.

För det första ökar den kraftigt summan som EU-kommissionen kan låna upp på finansmarknaden. För det andra föreslås krisstödet till störst del vara bidrag, vilket står i kontrast till EU:s räddningsfond ESM som bara erbjuder lån.

Martin Sandbu skriver för Financial Times att de som hoppats på ett ”hamiltonskt ögonblick” för EU blir besvikna. Begreppet syftar på när USA:s finansminister Alexander Hamilton år 1790 banade väg för amerikanska centralbanken vilket bidrog till ett mer federalt styrt USA.

Sandbu påpekar att EU inte tar över några nationella skulder och att den ökade upplåningen är en engångshändelse.

Wall Street Journal gör en liknande parallell i en osignerad analys med rubriken ”Europa söker sitt hamiltonska ögonblick”. Men det faktum att EU-kommissionens ordförande Ursula von der Leyen valts av EU-ledare och inte av folket, gör planen svårare att sälja in, enligt tidningen.