EU Leaders Agree on European Budget and COVID-19 Recovery Plan

On early Tuesday morning, the EU leaders agreed on this agreement to jointly borrow €750 billion to respond to the coronavirus pandemic. The EU’s recovery fund, will be composed of €390 billion in grants and €360 billion in loans, which will be attached to a new €1.074 trillion seven-year budget, the Multi-annual Financial Framework, which the heads of state and government reached to an unanimous agreement. This brings the total financial package to €1.82 trillion.

This was one of the longest summits in EU history because it has been ongoing since Friday, and it was the first in-person gathering of heads of states and government since lockdown measures were imposed in March. Those who supported the plan, stated that this was a symbolic demonstration of solidarity in response to the pandemic and accompanying the economic shock. However, other countries, such as Sweden and Denmark, opposed to the idea of taking on debt to issue recovery grants.

As for Malta, we managed to take up €2.25 billion of the EU funds, for the next 7 years, doubling the amount of the year 2014-2020. Prime Minister Dr. Robert Abela, ensured that this package, which is the largest package that the Maltese islands have ever received, will be distributed among the Maltese citizens and the economy!

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