2020.05.27 17:16

Lithuania could get €6.3bn from EC's coronavirus recovery fund – EU commissioner

BNS 2020.05.27 17:16

Lithuania could claim 6.3 billion euros from the 750-billion fund proposed by the European Commission to help post-coronavirus recovery, according to an EU commissioner.

“Lithuania may receive 6.3 billion euros from the new fund, including 3.9 billion euros in grants and 2.4 billion euros in loans,” Virginijus Sinkevičius, Lithuania’s EU commissioner responsible for environment, oceans and fisheries, told BNS on Wednesday.

“These will be additional funds, on top of the multiannual financial framework,” he added.

The EC's proposed 750-billion-euro package includes grants and loans for all 27 EU member states. The top beneficiaries would be Italy and Spain, the two EU countries hardest hit by the coronavirus pandemic.

Read more: Without joint borrowing, the EU will ‘fall apart’, says Lithuania's former president Grybauskaitė

The new fund, which would include 500 billion euros in grants and 250 billion euros in loans, would be financed with funds borrowed by the European Commission from financial markets.

The mutual debt would be repaid from the future EU budgets between 2028 and 2058, the Commission said. The recovery fund still needs the green light from all 27 member states.

The European Commission has also suggested adopting common taxes to help pay back the loans.

However, member states have been reluctant to introduce common taxes. Unless there is a consensus, member states would have to increase their contributions to the EU budget or to agree to cut some spending in the future.