The package, the world’s greenest stimulus plan to mitigate the economic effects of the coronavirus crisis, needs to be approved by the bloc’s 27 member states in difficult negotiations that may take months. It would promote sustainable investment in sync with the EU’s climate and energy targets, a move that was missing in many national Covid-19 bailouts despite encouragement from the commission.
The stimulus program, which will be funded by the commission’s borrowing on financial markets, includes 500 billion euros in grants and 250 billion euros in loans. It comes on top of a 1.1 trillion-euro budget for the 2021-2027 period. It’s not immediately clear how much of the funds will be earmarked for green initiatives, though analysts put the numbers at more than 100 billion euros.
On the list is also a proposal to reinforce the budget for a European agriculture fund to help farmers and rural areas implement the Green Deal. The 15 billion-euro fund will help the agriculture sector achieve new biodiversity targets and Europe’s clean food supply chain strategy.
Guest post from Bloomberg