MOSCOW (Pakistan Point News / Sputnik - 10th April, 2020) The Eurogroup said that it had agreed to work on the temporary Recovery Fund to tackle the economic consequences of the COVID-19 pandemic for the bloc.
"We also agreed to work on a Recovery Fund to prepare and support the recovery, providing funding through the EU budget to programmes designed to kick-start the economy in line with European priorities and ensuring EU solidarity with the most affected member states. Such a fund would be temporary, targeted and commensurate with the extraordinary costs of the current crisis and help spread them over time through appropriate financing," the Eurogroup said on late Thursday in a statement.
According to the Eurogroup, the next EU Multiannual Financial Framework (MFF) will play a central role in the EU's economic recovery from the pandemic.
"It will have to reflect the impact of this crisis and the size of the challenges ahead, by setting the right priorities, to allow Member States to effectively address the fallout of the coronavirus crisis, to support the economic recovery, and ensure that cohesion within the Union is maintained through solidarity, fairness and responsibility. We welcome the Commission's intention to adapt its MFF proposal to reflect the new situation and outlook," the statement said.
The Eurogroup added that the member states had agreed to provide worst-hit sectors and companies with liquidity support that consists of public guarantee schemes and deferred tax payments, which now stand at 16 percent of the bloc's GDP, up from 10 percent on March 16.
