Europe draws out a recovery plan of 750 billion Euros to tide over Coronavirus crisis

Brussels: – Ursula von der Leyen, President of the European Commission, while announcing a recovery plan of 750 billion Euros for Europe, to tide over the crisis created due to the Coronavirus pandemic, said that this is a decisive moment for Europe. This announcement by the European Commission is the biggest ever economic package in the history of Europe. Only last week, Germany and France, the leading economies in Europe, announced a recovery fund of 500 billion Euros. Against this background, this announcement made by the commission becomes significant.

The scheme announced by the European Commission is named ‘Next Generation EU’, and the scheme will give 500 billion Euros in aid, and 250 billion Euros will be given in the form of loans. The commission informed that the new scheme would create a fund of 1.85 trillion Euros in the EU budget between 2021 and 2027.

Ursula von der Leyen, President of the European Commission, announced the scheme saying that this is a decisive moment for Europe. Either we proceed individually or create a definite path for the European people and future generations. The European Commission will use all the capacities in the next budget for the life and employment of Europeans, bringing the European market back on track and long-term economic prosperity.

It is said that the European Union will be raising funds by removing limitations imposed on its revenue sources, imposing new taxes and raising new debts. The funds raised for the new scheme will be repaid by the European Union in three decades, between 2028 and 2058.

Coronavirus pandemic has played havoc in Europe, and more than 2 million cases have been reported. There have been 175,000 deaths in Europe due to the pandemic. The effects of the pandemic have sent the European economy in the shadows of recession and warnings are being issued that the Coronavirus pandemic will end the European Union.

Mixed reactions have been received from the members of the European Union over the scheme announced by the European Commission. Leading countries Germany, France and Italy have welcomed the new scheme. These countries have said that this is a very important day for Europe and the Commission has delivered a correct message through the scheme. But Austria, Denmark, Netherlands and Sweden opposed the provisions in the scheme. These countries have expressed regret over increasing the extent of the European Union and distributing free aids. One of the Dutch diplomats has reacted that it is impossible to get approval for this scheme in its current form.

Before this, a special scheme, Marshal Plan, had been implemented to rebuild Europe after the second world war. Under this Marshal Plan, the United States provided funds over USD 15 billion to some of the European countries for a few years after 1948.