EU economic and finance ministers to meet in Luxembourg
The EU’s economic and finance ministers are set to meet in Luxembourg today.
The ministers are set to discuss the EU’s disparate post-pandemic economic recovery plans, value added taxes, banking union, financial services, fiscal sustainability and the European Semester as a policy coordination framework.
The 27 EU member states had completed the process of ratifying the decision authorizing them to take on collective debt at the end of May. With this, Brussels managed to borrow $25 billion on Tuesday to fund its $900 billion post-pandemic recovery package. The borrowed money will facilitate the modernization of the European economy through its ecological and digital transitions. The EU aims to give the green light for its regional recovery plans today, a preliminary step before first payments are issued. Brussels will then raise another $70 to 95 billion by the end of the year, raising the rest progressively until 2026.
Today’s Council’s discussions will center on the national recovery plans. Expect the first payments to be made in July as it would be unexpected to see Brussels reject national recovery plans. Nevertheless, Brussels’ demands are not substantial, fearing that imposing painful reforms in a difficult economic context will fuel the rise of populism within Europe.
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