European Parliament demands €2 trillion recovery chest

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Members of the European Parliament adopted a resolution calling for a €2 trillion ‘recovery and transformation’ fund to revive European economies. The document, which was approved by 505 votes in favour, said that the fund must be separate from the Multi-annual Financial Framework (MFF), arguing money taken away from EU programmes would defeat the purpose.

The resolution warned against “dubious multipliers” or “financial wizardry” to inflate figures, insisting that the credibility of the entire European project is at stake. MEPs said that they are prepared to veto the European Commission’s long-term budget if it does not include the substantial increase.

EP President Davide Sassoli said that the Parliament expected fast action to launch a citizen-centric package that protected people in the EU and their jobs. “We want to do it quickly, but we want to do it well,” Sassoli said.

The resolution urges the EU Commission to find creative sources of revenues besides country contributions based on GNI expressions, which is anticipated to drop significantly because of the crisis.

Additionally, MEPs want the fund to be disbursed mostly through grants, fearing that loans would pile more the financial strain on member states.

Parliament agrees with the EC proposal to direct EU recovery towards the priorities earmarked by the European Green Deal and the Digital Transformation strategy, but the document proposed the creation of an EU health programme to ensure the availability of medical supplies if a situation similar to the Covid-19 pandemic arises in the future.

MEPs pointed out that Parliament is the only directly-elected EU institution and should have oversight on budgetary issues as a matter of democratic legitimacy.

Via: European Parliament

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