First billion EU bonds for corona aid announced

The Commission can start borrowing for the Next Generation EU development plan, as all 27 EU countries have ratified the necessary decisions. The total amount is 750 billion euros in 2018 prices – or a good 800 billion euros after adjusting for inflation. The money is raised in the capital markets.

Some of the billions will flow as grants to the EU countries and will then be repaid jointly through the EU budget by 2058. However, some of them are loans that have to be transferred back to Brussels by the recipient states. Most governments have now submitted so-called development plans to the Commission. This shows how the national share should be used. As soon as these plans have been examined and approved by the Council of EU States, the first money can flow, probably in July.

In the summer of 2020, the heads of state and government agreed on the unprecedented program. It is considered historical because the EU Commission is taking out debts on a large scale for investments for the first time. In addition, there is a lot of redistribution between the EU states. While the countries hardest hit by the corona pandemic, Spain and Italy, expect the largest sums, Germany gets a relatively small share.