May 13, 2020 / 3:01 PM / 14 days ago

EU exec to propose solvency, investment facilities, new revenues for EU budget

FILE PHOTO: European Commission President Ursula von der Leyen speaks at a news conference in Brussels, Belgium, March 16, 2020. Reuters/Johanna Geron/File Photo

BRUSSELS (Reuters) - The European Commission will propose an EU recovery package from the coronavirus pandemic that will include new investment, solvency and health schemes and proposals for new EU revenues, Commission President Ursula von der Leyen said on Wednesday.

Speaking to the European Parliament, she said the recovery plan would be in addition to the EU’s net long-term budget but that money from the recovery scheme would be channeled through the budget to give parliament control over how they are spent.

Von der Leyen did not mention any numbers, but said the recovery money would be raised on the market by the Commission against the guarantees of EU governments and spent where they are needed the most — regions that have been worst hit by the pandemic and which show the greatest potential.

She did not specify what new EU revenues the Commission would propose later this month when it presents the plan. The recovery scheme envisaged grants, not only loans, she said.

She said the bulk of the money would be aimed at helping governments in key areas of public investment and reforms that were in line with EU policies like becoming climate neutral, digitalising the economy and making the economy more resilient.

Reporting by Jan Strupczewski

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