The Budget Allocated to Bulgaria by the EU Will Reach 30 Billion Euros
Bulgaria will receive approximately 15 billion Euros from the EU due to the pandemic and will have to repay 3 billion. Together with the money allocated from other EU funds the total sum will be about 30 billion euros.
Yesterday's decision of the European Commission is historic and brings European integration to a new level, said PES leader Sergei Stanishev.
In order to receive the colossal funds, Bulgaria will be obliged to present a National Recovery Plan to the EU. It cannot be just a government plan - we need a wide round table, with experts, branch organizations, unions and employers, with the opposition, to see all the ideas and to assess which sectors are most affected, Stanishev explained. The amount of 15 billion euros was confirmed by GERB MEP Andrey Novakov. In his words we are expected to receive 10% more from the new European budget (2021-2027) than we have been given so far.
The rescue fund
As the Banker has already written, on Wednesday, the European Commission presented details of its corona crisis recovery plan, called the "next generation EU" with a total value of 750 billion euros. Novakov clarified that 500 billion euros will be grants for companies, people, regions, municipalities. The remaining 250 billion euros will be loans allocated to the member states according to their individual needs.
The total budget for Bulgaria is 15 billion euros, but as the aid will go through European programs, national co-financing of 3.3 billion euros will be needed.
The total budget for Bulgaria is 15 billion euros, but as the aid will be distributed through European programs, national co-financing of 3.3 billion euros will be needed. Co-financing in this case means state guarantees for the assumption of the total debt in the amount of EUR 3.3 billion or about BGN 6.5 billion.
Repayment of the loan by the Member States will also be in line with their share of the EU's gross net income. This must happen no earlier than 2028 and no later than 2058.
According to the EC the colossal funds should be invested in only three pillars - in investments and reforms, which are mostly related to the green and digital transition, in supporting viable European businesses in the most affected sectors, regions and countries, as well as in strengthening health security and preparing for future health crises.
The European negotiations on the funds for eradicating the corona crisis in the economy will continue until the end of this year and as early as January 2021, businesses, municipalities and countries will receive the money for economic recovery, explained MRF MEP Ilhan Kyuchyuk.
The ideas of the EC must meet the support of the European Council and the European Parliament. In addition, ratification of state guarantees by the national parliaments of all 27 EU Member States will be required. Therefore, the EC believes that it may enter the international markets in the last quarter of 2020 at the earliest and the money will not be withdrawn at once. The first funds could come before the end of the year, if the proposal to update the current European budget by 11.5 billion euros is approved.
German Chancellor Angela Merkel and Austrian Chancellor Sebastian Kurz said on Wednesday that they expected further talks on the EC's proposal for a 750 billion-euro coronavirus crisis recovery fund.
Kurz said the proposal was a "starting point for negotiations", while Merkel predicted there would be "difficult negotiations". French President Emmanuel Macron, in turn, said we needed to move quickly and reach an ambitious agreement with all our European partners.
Austria, Denmark, the Netherlands and Sweden - collectively known as the "thrifty four" - have proposed a fund issuing loans only, not grants.