Europe | Key points of the European deal

Summary

The European Union has reached a deal on its recovery fund, Next Generation (NGEU), that will play a significant role in the future of European economies. Difficult negotiations have shown that divisions remain but the outcome has been very positive.

Key points

• Key points:
• The agreed 750,000 million euros, to be spent between 2021 and 2023, are an important fiscal stimulus for the EU as a whole (5.4% of GDP).
• In net terms, Spain could receive approximately 6.5% of one year’s GDP, Italy 3.2% and Greece 18% by the end of the process. Germany, Denmark and the Netherlands will contribute almost 4%.
• The NGEU will have many implications for the future of the EU in the long run, including the role of the strengthened Franco-German alliance.
• It seems clear that, though temporary, the NGEU agreements reached open up the possibility to many elements that make up a fiscal union.

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