The European Commission (EC) proposed EUR 63.8 billion in grants and loans from a new instrument to help Poland rebuild its economy in the wake of the coronavirus pandemic, the Polish Press Agency (PAP) reported on Wednesday citing its EU source.
The highest amount of EU non-returnable grants after Italy, Spain and France has been secured for Poland. Calculations seen by PAP show that Poland can count on EUR 37.69 billion in grants alone, while Italy is to receive EUR 81.7 billion, Spain EUR 77.3 billion and France EUR 38.7 billion.
In terms of loans, Poland is set to receive EUR 25.1 billion, with EUR 90 billion going to Italy and EUR 63 billion to Spain. In this category, Poland is in third place because under EC provisions, not all member states will make use of the instrument.
Unveiled on Wednesday, the European Commission’s plan is to borrow on the market and then disburse to EU countries EUR 750 billion in grants and loans to help them recover from their coronavirus slump, giving an immediate boost to the euro.
“The aim is also to protect the European Union’s single market of 450 million people from being splintered by divergent economic growth and wealth levels as the 27-nation bloc emerges from its deepest-ever recession, which is expected this year,” Reuters reported.
The recovery fund package is in addition to the EU’s long-term budget for 2021-27, which the Commission will propose being set at 1.100 trillion euros, is virtually the same as the proposal discussed by leaders in February of 1.095 trillion.
“In total, this European Recovery Plan will put 1.85 trillion euros to help kick-start our economy and ensure Europe bounces forward,” the EU executive said in a document titled “Europe’s moment: Repair and Prepare for the Next Generation.”