The European Commission has now presented its long-awaited proposal for an adjusted Multiannual Financial Framework (MFF) 2021-2027, putting together a €1.85 trillion-strong initiative to tackle the longer-term social and economic consequences of the COVID-19 crisis and make Europe’s economy and societies more resilient to crises – all while steering resources predominately into innovative, environmental and climate-protecting technologies and activities. In a first reaction, leaders of CESI welcome the proposal.

In order to arrive at this amount of financial resources, the European Commission proposed to temporarily lift the EU’s financial resources from about 1% to up to 2% of the EU gross national income (GNI) by borrowing, on behalf of all Member States, a total of €750 billion on the financial markets, taking advantage of its strong credit rating. 

The European Commission would thus issue bonds on behalf of the EU and the €750 billion be deployed under the MFF into a new flagship ‘Next Generation EU’ programme, designed specifically to help citizens and Member States alleviate the socio-economic COVID-19-fallout that they face.  

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