Банкеръ Daily


Oops, Bulgaria Is the Most Screwed-Up in the EU: 30% Grants Instead of 50% as with the Others

Europe has agreed on a financial assistance for the bloc countries to deal with the post-COVID-19 crisis. This is the biggest brunt the EU has undertaken so far. All countries have declared the compromise reached during the negotiations to be a real victory. For the most part, grants and loans are expected to be 50/50. Oops, not for Bulgaria. We are "the most screwed-up" again, although Prime Minister Borissov has beaten the drum for the huge sum of 29 billion euros, which was agreed during the unprecedented 4-day meeting.


Basic math


750 billion is earmarked for the recovery of national economies. This amount is divided into two - 390 billion are grants and 360 billion are loans. Spain has received a total of 140 billion, 72.7 billion of which are non-repayable. The five net contributors to the general budget - Germany, the Netherlands, Sweden, Austria and Denmark - receive "rebate checks", i.e. their contributions are reduced by a total of 52 billion over the next seven years. The "frugal four" will save 27 billion.


France has received 40 billion in grants. Greece will take a little over 70 billion. Romanian President Klaus Johannes has solemnly declared that our northern neighbor has managed to negotiate 79.9 billion euros.


The foreseen allocation for Bulgaria is 29 billion - a billion more, as Borissov triumphantly announced. Of this, EUR 7.7 billion is a grant under the Next Generation EU package. In other words, the remaining nearly 23 billion will have to be paid back to Europe.


The grant / loan ratio for the countries in the bloc is approximately 50/50 with small deviations. The accounts for Bulgaria, however, look different. According to a simple calculation, this is about 30% grant support.


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