The EU Commission proposes a European recovery plan which would be funded by borrowing on the financial markets

On 27 May 2020, the European Commission put forward its proposal for a European Recovery Plan (ERP) [1] with a new EUR 750 billion funding via its financial recovery instrument, called the "Next Generation EU" which would be funded by borrowing on the financial markets. [2] If approved by the Member States, Next Generation EU will invest EUR 500 billion through grants and EUR 250 billion through loans. This is additional to a 'boosted and reinforced' EUR 1.1 trillion EU budget – Multiannual Financial Framework (MFF) for 2021-2027. The ERP will provide huge opportunities for companies investing in projects connected to the EU's digital strategy objectives as well as its 'Green Deal'. Opportunities for TMT companies Unanimity will be required for the Commission to borrow the proposed

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Authors

  • Baker McKenzie (London)
  • Baker McKenzie (London)
  • Baker McKenzie (London)

Quotation

Ben Allgrove, Steve Holmes, Nick O'Grady, The EU Commission proposes a European recovery plan which would be funded by borrowing on the financial markets, 27 May 2020, e-Competitions May 2020, Art. N° 99218

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