The European Commission will conduct its first bond issuance tomorrow to fund the recovery plan.
The European Commission only expects to pay countries the first funds for the recovery of covid-19 after the crisis in August, rather than in July as previously estimated. In view of the necessary procedures, the EU Commissioner of Guardianship announced on Monday.
“tomorrow [terça-feira] We will issue the first bond, and then we will issue another bond in June, and then another bond before the summer vacation. I believe that the first funds may begin to reach member states sometime in August. “The European Commissioner for Budget Announcement and Administration, Johannes Hahn.
Speak at the seminar online In the capital markets organized by the European Commission, the European Investment Bank, and the European Stability Mechanism, Johannes Hahn emphasized that the Recovery and Recovery Plan (PRR) “needs not only the approval of the European Commission but also the approval of the Council”, and countries intend to Use these funds for reforms.
“Then we will have to reach a financial agreement in order to start paying,” he said.
After that, “you can start investing, but I believe all needs and expectations can be met in due course,” Johannes Hahn said.
Initially, the European Commission had predicted that if it managed to start issuing debt in June to fund the recovery plan, it might make its first payment in July.
On Tuesday, the European Commission issued bonds for the first time to raise funds for the European Union’s Next Generation Fund (“Next Generation EU”), which will total approximately 800 billion euros by 2026.
After the first transaction, the committee will conduct a second transaction in June and a third transaction in July.
On Wednesday, the President of the European Commission Ursula von Delane went to Lisbon to officially announce the approval of the Portuguese RRP, but the approval of the academy is still required. This trip also includes countries such as Spain and later Greece, Denmark and Luxembourg.
After approval in Brussels, the council has four weeks to approve the PRR with a qualified majority.
After both agencies have approved the planned reforms and investments, the final step before countries receive funding—the initial 13% payment—is the signing of a financing agreement between the committee and the relevant government.
Portugal is the first member country to formally deliver its recovery and recovery plan in Brussels in April-the plan is estimated to be 16.6 billion euros, of which 13.9 billion euros are related to non-repayable grants-hope that the council will be able to The first plan was passed during the presidency that ended at the end of the month.
In order to finance the recovery, the European Commission will borrow up to 750 billion euros on behalf of the EU in the capital market at 2018 prices—about 800 billion euros at current prices—converted to an average of about 150 billion euros per year. -In 2021 and 2026, make the EU one of the major emitters.
These funds will finance a 672.5 billion euro recovery and resilience fund (in 2018 prices) and the core element of the “Next Generation EU”, the 750 billion euro fund approved by European leaders in July 2020, for the EU to recover from the crisis. The economy recovered due to the covid-19 pandemic.