On Friday, President of the European Union, Ursula von der Leyen announced that the EU has earmarked EUR 37.3 bn for a fund aiming to minimise the impact of the coronavirus pandemic on the European economy.
According to the information issued by the European Commission, Poland will receive EUR 7.4 bn, followed by Hungary (EUR 5.6 bn), Spain (EUR 4.1 bn), Romania (EUR 3 bn), and Italy (EUR 2.3 bn).
The money will come from the cohesion policy fund. Poland will be the biggest beneficiary, because according to the 2014-2020 EU budget, the country was meant to receive the most funds from this pool anyway. If it was not for the epidemic, these funds would have been directed towards other initiatives or investment co-financed by the EU or they would not be spent at all, if the member-states could not match them.
The European Commission is concerned that the impact of the coronavirus outbreak will badly affect the EU economy. On Friday, Director General for Economic and Financial Affairs Maarten Verwey announced that the EU and Eurozone will most likely experience a coronavirus-induced recession.
The EU 37.3 bn proposal is soon to be approved by the EU Commission and the EU Parliament. According to EU institutions the legislative process is set to proceed swiftly.