The EU said that this fund will be of sufficient magnitude and it will target the sectors and geographical parts of Europe which are most affected by the pandemic. They also informed the audience that this fund will be dedicated to dealing with this unprecedented crisis.
The heads of the EU governments asked officials to come up with urgent proposals and to start making plans on how to execute the whole idea that will include how the recovery fund will relate to the budget of the upcoming years.
The EU has actually decided and is planning to expand its budget from about 1.2% of GDP to 2% of GDP and then when the desired amount will be reached, they will use those additional funds as a guarantee to borrow at low rates from the affected financial markets.
When one the reporter asked about as an idea of how much money will be collected, the EU members that they are not talking about billion[s] rather they are talking about trillion[s].”
In order to fulfill the idea at a speedy rate, the EU leaders also signed off on an agreement including an immediate package of rescue measures worth at least €500 billion are drawn up earlier this month by finance ministers. That package also includes up to €100 billion ($110 billion) in wage subsidies aimed at preventing mass layoffs, apart from this the package also contains hundreds of billions in loans to businesses and credit for EU governments.
Societe Generale strategist Kit Juckes said on Friday that we have to work together for the cause and every citizen will have to participate in the funds giving otherwise it will become very difficult to manage the economic loss that we are facing right now.