EU agree a €1.8 trillion package to fund the next seven years of spending an

Naomi O’Leary writes in the Irish Times this morning…

The recovery package involves a €750 billion in grants and loans that will be funded by jointly-guaranteed borrowing by the European Commission, the first time this has been done and a proposal that faced significant resistance from a group of so-called frugal northern member states led by the Netherlands.

The overall amount of the money due to be distributed as grants that do not need to be directly paid back by national governments was reduced to €390 billion from €500 billion as a compromise, with €360 billion to be distributed as loans to member states.

This is also the first budget in which the UK will not be a contributor, which means that as well as drawing down on funds the Republic’s contribution will have to increase. But as Naomi also notes:

The deal secures a €5 billion ‘Brexit Adjustment Reserve’: funds for the sectors and countries worst-hit by the effects of Britain leaving the EU, of which Ireland can expect to receive a substantial share.

 

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