First European debt issue launches post-COVID economic recovery

The European Union today made the first joint debt issue to fund the Next Generation EU programme, the extraordinary debt issue mechanism that will place EUR 800 billion at the disposal of the Member States to fund their Recovery and Resilience Plans. This is central to the European response to the crisis caused by COVID-19.

“The kick-off of Next Generation EU reaffirms the EU’s firm commitment to a sustainable, green and digital recovery”, according to the Portuguese Minister of State for Finance, adding that “it is a milestone in European history, an unprecedented solution in the form of a common response to the crisis”.

João Leão believes that the debt issue, approximately EUR 20 billion, “gives us the assurance that the money will start reaching economies very soon and, along with the approval of the first Recovery Plans during the course of this week, will allow the Member States to begin making the investments and reforms needed for their economic recovery”.

After ratification of the Own Resources Decision by all the Member States, which came about “in record time”, the Minister recalled, “we are very pleased to have been able to take this next step during the Portuguese Presidency of the Council of the EU”, João Leão concluded.