The European Council held a regular meeting, following which the final version of the creation of a special mechanism for supporting and developing the economy was approved, reports by EUR News.
The 750 billion euro fund has been dubbed the Next Generation EU. More than 670 billion euros of this amount will be used to restore the European economy, which has suffered from the effects of the restrictions imposed to combat the spread of the coronavirus.
The main source of funds in the fund will be loans in the markets. The EU countries will receive them in the form of loans or grants. Despite the final approval of the fund, it has not yet started working. This is due to the fact that European countries have to detail some data included in the fund.
This week, the European Commission revised its forecast for GDP growth in the euro area in 2021. It was reduced from 4.2% to 3.8%. At the same time, the forecast for economic growth for the next year was raised from 3% to 3.8%. The deterioration of the forecast for the current year is explained by the persistence of a difficult epidemiological situation in the region.
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