The European Union set out a $2 trillion coronavirus response plan. The European Commission on Wednesday said it planned to deploy €750 billion, or about $826 billion, as part of a new long-term budget and recovery plan.
A budget of €1.1 trillion budget will be available over the next seven years. In the package called "Next Generation EU," about €500 billion would be offered as free grants to the bloc's member states, while €250 billion would be made available as loans to help repair the single market from the economic blow of the coronavirus pandemic. This is „a European turning point to face an unprecedented crisis," Paolo Gentiloni, the European commissioner for economy, said in a tweet. "This is Europe's moment," European Commission President Ursula von der Leyen said in a statement. The commission said that the additional funding would be raised by temporarily lifting its "own resources" ceiling to 2% of the EU's gross national income. It would be repaid throughout EU budgets over 30 years, from 2028 to 2058.
Italy and Spain will be the biggest beneficiaries, while Germany will receive relatively little. Governments will have to present reform programs to receive support. EU governments still have to agree to the plan, and some northern member states, especially the Netherlands and Austria, are likely opponents. The proposal needs unanimous support, which will be hard to secure.