Europe is getting an unprecedented and highly questionable loan on coronavirus

EC President Ursula von der Leyen presented a new fund to the European Parliament on Wednesday, of which € 500 billion. € 250 billion will be distributed to Member States in the form of grants. EUR – loans to pay.

These amounts are in line with the Traditional Multiannual Financial Perspective (MFP), which is expected to reach € 1.1 trillion in 2021-2027. euros Therefore, the EC proposes to allocate 1.85 trillion to the overall post-pandemic community economy. euros

No details yet

At a virtual press conference on Friday, MEP Petras Auštrevičius said the latest MFP proposal contains good news for Lithuania.

“The good news is that the line where Rail Baltica is expanded is expanded. Cohesion has increased even more (€ 55 billion), and so has agriculture. I don’t see the need to complain, but it is our business to prepare the national reform program and discuss it not in a cabinet, but at the national level and find a common solution, “he said.

However, a member of the Renew Europe faction noted that Lithuania still did not have the desired funding for the closure of the Ignalina nuclear power plant. “Ignalina is missing. As it was 490 million. 100 million euros are needed. 200 million euros per year, so there is still a deficit of around 200 million euros.” He said.

As you know, four themes are usually the most relevant for Lithuania in the MFF: the cohesion fund, payments to farmers, support for the INPP closure work and financing of the Kaliningrad transit.

The press conference focused on the new $ 750 billion. Euro background. As MEP Kubilius explained, this is because the ratification of the MFF is a well-known process.

“Standard, there may be disputes and questions about individual lines, but that is nothing particularly new,” he said. – Question on the Recovery Fund: Answers are needed before ratification can take place. Many of those questions all go from praise about solidarity to specific things. Like 750 billion. euros will be refunded? Another problem is the use of those funds. “

European Commissioner Virginijus Sinkevičius reported this week that Lithuania € 6.3 billion can be expected. Of these, 3.9 billion. € 2.4 billion could be grants and € 2.4 billion. EUR – loans.

Money is slated to reach European countries in the coming years, and debt on financial markets will be paid in 2027-2058.

Skeptics appear

Mr. Auštrevičius noted that the EC had not yet provided details on the Recovery Fund.

“It has not yet been possible to provide all the technical details, which means that the final political decision will be when the member states unite, and they have the greatest skepticism, especially those that can emerge from the current crisis on their own,” he said.

Maldeikienė, a member of the Group of the European People’s Party (Christian Democrats), said the foundation is currently a political problem.

“It just came to our attention then. We see that the austerity countries clearly say they don’t agree, and Angela Merkel doesn’t agree either.

The rules of the game will be clear when there are deadlines for return and logic. You need to think about which layers take the money and which will. In this case, it is necessary to speak very clearly to the EP: which countries will receive and which will pay. What criteria have been established for who has suffered the most, “he said at a press conference.

In turn, A. Kubilius noted that the 750 billion money. Member States, but it is not known what they will do with them.

“The money is likely to be used for the same expenses as before. There is never too much money. It is possible to pave roads and build schools. But you can question whether it really will give the opportunity to transform technologies into digital, into green energy, “he said.

R. Kubilius also recalled that new taxes can be created to pay the borrowed money. Considerations have already been published on the plastic tax, the income from the carbon trading system, the tax on large companies in the digital sector.

Mr. Auštrevičius said that the Recovery Fund and the MFP were closely linked.

“This is a delicate political and financial game launched by the EU institutions and the Member States. Someone is more satisfied with the recovery plan and has more hope. For the next 7 years, the budget is higher and finances more expenses. various.

A compromise will probably be sought. If someone is more dissatisfied with one thing but more satisfied with another, it will be possible to connect and find the famous “Brussels compromise,” he said.

Stasys Jakeliūnas, a member of the Group of the Greens / European Free Alliance, noted that the Recovery Fund poses many risks due to the lack of an impact assessment.

“The risks are enormous. The money is enormous, the loans are enormous. I joke that the Italian mafia is probably rubbing its hands in order to benefit from the projects.” Without much better supervision, a lot of money will be spent inefficiently, to put it mildly, and it will increase social exclusion within and between member states, “he said.

Liudas Mažylis, a member of the Group of the European People’s Party (Christian Democrats), called the new fund the second EU budget.

“Europe is not in the habit of borrowing from MFF. This is unique, creating a second budget above the MFP. It is loan based and could be distributed through grants or loans,” he said at a press conference.

The European Council will debate both MFF 2021-2027 and MFF 750 billion. EUR Recovery Fund, scheduled for June 19.