Commission proposes major EU recovery plan in light of COVID-19
BRUSSELS, Belgium: In order to repair the economic and social damage caused by the SARS-CoV-2 pandemic, the European Commission is proposing a major recovery plan for Europe, based on harnessing the full potential of the EU budget. This recovery plan consists of a twofold response: Next Generation EU and a reinforced long-term EU budget. Next Generation EU will be rolled out across three pillars: supporting member states to recover, repair and emerge stronger from the crisis; kick-starting the economy and helping private investment; and learning lessons from the crisis.
Three initiatives within the EU recovery plan are particularly relevant for ADDE members.
The first initiative concerns the enhanced InvestEU programme, which aims to provide an EU budget guarantee for financing of investment projects via the European Investment Bank group and national promotional banks. In this regard, a total budget of €10 billion will be made available to support small to medium-sized enterprises. The enhanced InvestEU programme will provide crucial support to companies in the recovery phase and will support the EU in its long-term green and digital transition.
The second initiative relevant for ADDE members concerns the Solvency Support Instrument, which aims to support the equity of viable companies. This is a temporary crisis instrument to help otherwise healthy companies weather the storm, protect the single market and strengthen cohesion across the union. It focuses on companies in those member states and sectors most economically impacted by the pandemic and on member states where national solvency support is more limited. The Solvency Support Instrument will be open to all member states and to all sectors covered by the European Fund for Strategic Investments—thereby focusing on the member states most economically impacted by the pandemic and where national solvency support is limited.
Thirdly, the new health programme set up at European level seeks to help equip Europe against future health threats. One of the main goals in this regard is building emergency reserves of medicines, medical devices and other health supplies. Furthermore, it seeks to make medicines, medical devices and other critical health supplies available and affordable for patients and health systems. The total budget available for this health programme is €9.4 billion.