EU's von der Leyen: Huge differences in how much support member states are giving in state aid

Eren Sengezer FXStreet

"Unless we act together, the coronavirus recovery will not be symmetric," European Commission President Ursula von der Leyen said on Thursday and noted that there were huge differences in how much support member states are giving in state aid.

Key takeaways

"Recovery should be along with green and digital principles, EU budget clearly linked to recovery fund is the best instrument."

"Commission will explore innovative financial instruments in the next budget."

"Commission will propose to increase budget headroom to raise funds against guarantees from member states."

"Own resources ceiling of 2% of GNI will be needed for 2-3 years."

"Recovery investment will be frontloaded, necessary to find a balance between grants and loans."

"The recovery fund to mobilise a trillion euro worth of recovery investment."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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