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The European Union launches its economic recovery plan in June

The European Council announced that the European Union will launch in June a recovery plan to recover from the economic repercussions of the Corona virus, after it was approved by the 27 member states of the bloc.

According to Swissinfo, Portuguese Prime Minister Antonio Costa, whose country holds the rotating presidency of the Council, said, "The European Council is now able to obtain the necessary funding for the European Economic and Social Recovery Plan."

The Commission will be able to enter the financial markets and borrow money to finance the plan in the name of the member states of the European Union.

The plan, worth 750 billion euros, was approved in July 2020. However, the commission's proceeding with borrowing in the name of the bloc would have required the approval of the 27 member states of the plan.

The European economic recovery plan provides for a joint borrowing fund among all member states to reduce costs for the countries least able to bear their burdens, in a step that was opposed, at length, by northern "austerity" countries.

"The governments of the 27 countries and their national parliaments have shown a strong sense of solidarity and responsibility," Costa said.

"We cannot afford to waste more time," he said, adding, "We must ensure that the first recovery and adaptation plans are approved by the end of June."

French Minister for European Affairs Clement Bonn told "Les Echos" newspaper that the European Union will start communicating with major international and European banks from Tuesday.

The parliaments of Austria and Poland were the last to ratify the co-borrowing mechanism, and they did so Thursday.

Spain and Italy, which have been hard hit by the pandemic, will be the main beneficiaries of the fund, as each of the two countries will receive about 70 billion euros.

The funds will be earmarked for major infrastructure projects and environmental projects such as developing a network of electric vehicle charging stations.

Funds have also been allocated to improve high-speed telecommunications networks and data storage facilities.