MEPs: Establish Recovery Fund As Soon As Possible To Prevent Major Recession

SARAJEVO, (Patria) - At yesterday's European Parliament workshop on the EU's long-term budget and crisis response, MEPs called for the recovery fund to be established as soon as possible to prevent a major recession.

On Tuesday, the European Parliament discussed the EU's long-term budget and the European economic recovery plan, with MEPs welcoming the recent Franco-German proposal for a €500 billion recovery fund and reiterating Parliament's position on the recovery plan as adopted at the recent plenary session.

Parliament will hear from European Commission President Ursula von der Leyen, who will present a revised proposal for the multiannual financial framework (MFF) and the recovery plan, and hold a plenary debate today.

Johan Van Overtveldt (ECR), Chair of the Committee on Budgets, warned that the current economic situation might be getting out of hand and called for swift action: "COVID-19 is still a major health crisis, and we are aware that, slowly but surely, it is turning into a huge recession. In the coming days and weeks, we must devise a plan to reconcile solidarity with responsibility. [...] If we do not stop the recession as soon as possible, we may face what I define as a new financial hurricane."

José Manuel Fernandes (EPP), co-rapporteur for EU revenues, said the Franco-German initiative was "a step in the right direction" and stressed that the recovery fund was needed immediately, as the MFF would not be established before 2021. Regarding Member States' response so far to agree on a robust long-term budget, Fernandes said: "Member States are not saying to what extent they want to reduce cohesion or agricultural funding. They want to keep their envelopes. Everyone wants to increase research funding. The Commission wants a 'geopolitical Europe' and to finance the Green Deal. Therefore, we need funds to meet these commitments."

Ernest Urtasun (Greens/EFA) said: "The recovery fund must not be created at the expense of the MFF. It would be a bad solution to have a strong recovery fund that spends the MFF in advance, and then have a very weak MFF for three or four years. We need both: a strong recovery fund and a strong MFF, because after the recovery, urgent climate and digital challenges will remain."