EC proposal “allows robust response” to crisis, says António Costa

  • ECO News
  • 27 May 2020

Prime Minister considers that the European Recovery Fund, presented this Wednesday by Brussels, "allows a robust response" to the pandemic crisis.

The prime minister António Costa reacted to the European Commission’s proposal for the European Recovery Fund, presented this Wednesday with a compliment: the figures put forward by Brussels “allow a robust response” to the pandemic crisis, he wrote on Twitter.

“I welcome the ambitious proposal from the European Commission, which is up to the challenge facing Europe,” he said, pointing out that “it is now up to the Council not to dash this hope.”

On Wednesday the European Commission put forward a proposal for a new Multiannual Financial Framework (MFF) 2021-2017 of 1.1 trillion euros, to which must be added 750 billion euros (500 billion euros in grants and 250 billion euros in loans) for the European Recovery Fund in the wake of the pandemic crisis, the amount of which will be financed through debt issued by the Commission on behalf of the European Union. Portugal is to receive 26.3 billion euros, of which 15.5 billion euros in grants and 10.8 billion in loans euros.

For António Costa, “the reinforcement of the MFF by 750 billion euros, ensured by the issue of debt by the EU and divided between member states mostly through grants, added to the 540 billion euros of funding already approved, allows a robust response to the health, economic and social crisis.”

The Prime Minister argues in a series of tweets published after Ursula von der Leyen’s proposal that “integrating this reinforcement into the MFF ensures the coherence of the recovery effort with Europe’s strategic priorities in combating climate change, in the digital transition and in building the strategic autonomy of our productive capacity”. Costa also stressed “the importance of the proposed strengthening of cohesion policy and rural development.”

Despite praising the proposal in general, the Portuguese government will also “analyse the distribution key between the different member states to guarantee economic and social convergence”. At the moment, according to information from ECO, aid for Portugal, which will be distributed between 2021 and 2024, corresponds to about 13% of Portuguese GDP in 2019 and about 3.5% of the total value of the fund of 750 billion euros.