Italy and Spain will be the biggest beneficiaries of the landmark European Union pandemic recovery fund agreed upon by member states last month, which will distribute 750 billion euros ($885 billion) in grants and loans to member states.
According to German Parliament figures seen by Bloomberg, here is how the grant portion is getting allocated. These numbers don’t make up the full amount as 30% of the funds will be disbursed in 2023 and will depend on how member states’ economies fare in 2020 and 2021. The numbers could also change when the budget is negotiated in the European Parliament.
Other big beneficiaries of the funds include France and Greece. These are all countries that have been hit hard by the pandemic, not least because of the blow dealt to sectors such as tourism.
Germany will receive 15.2 billion euros in grants from the EU, according to the figures, money it plans to use to avoid taking on more debt rather than fund new growth initiatives.
The unprecedented stimulus package, which was agreed by EU leaders last month, will be funded by jointly issued EU debt, tightening the financial bonds holding the bloc’s 27 nations together. The emergency fund will give out 390 billion euros of grants and 360 billion euros of low-interest loans.
Almost a third of the funds are earmarked for fighting climate change and, together with the bloc’s next 1 trillion-euro, seven-year budget, will constitute the biggest green stimulus package in history. All expenditure must be consistent with the Paris Agreement’s goal of cutting greenhouse gases.
The full grant allocations for 2020 and 2021 are here:
|EU Member States||Grants (in billions of euros)|
— With assistance by Viktoria Dendrinou
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