(Newswire.net — May 8, 2020) — Team Europe comes to the financial aid of ten neighbouring countries in order to limit the economic effect of the coronavirus.
Solidarity to the Entire Region
The EU has chosen to demonstrate its solidarity to its neighbours in these particularly difficult times, by coming up with a 3 billion euros plan to help ten different countries make it out of the coronavirus pandemic. It clearly states the position of the European Union, indicating that in times of crisis we need to be there for each other. This help will ensure the stability of the whole region. It will be used to help citizens as well as companies during the sanitary crisis.
These ten countries, who will receive an unequal part of the money, are in alphabetical order: Albania, Bosnia and Herzegovina, Georgia, Jordan, Kosovo, Moldova, Montenegro, Macedonia, Tunisia and Ukraine. The amounts vary between 60 million (Montenegro) and 1.2 billion (Ukraine).
Our solidarity cannot stop at the borders in such a difficult time said Paolo Gentiloni, Commissioner for Economy, as it was reported in financial magazines. European countries need to help each other, but also those around, so that it can make it out of the crisis more rapidly and go back to work on rebuilding the economy of the region.
What is the money for and when will it be given out?
Many of the countries included in the plan currently have urgent needs for financing. This money should help them protect their citizen from the negative socio-economic consequences created by the effects of the coronavirus crisis and enhance the macroeconomic stability inside each country. It can also be used for balance-of-payment difficulties. Countries can get a hold of the loan money over the next 12 months. This help is additional to the IMF, which has already come in support.
The Commission is hoping for a quick adoption of the proposal followed by a rapid distribution of the first amounts, as soon as the agreement will be signed for each of the country. If everything goes according to plan and the money is used by the various beneficiaries as was agreed, the second part of the money could be made available in the last quarter of this year or during the first half of the next.
Where does the money come from?
In order to provide the 3 billion euros, the EU went to get the financial resources from the States and financial institutions, including the European Investment Bank and the European Bank for Reconstruction and Development. The complete plan from “Team Europe” comes to a total of 20 billion euros. The major part of the fund will help member States of the EU and has already been partly distributed. Some packages have also served to help in the Western Balkans.
But the collaboration isn’t only inside the European Union. It also contributes within the United Nations, the G7 and the G20. Also, on top of the Micro-Financial Assistance (MFA), the EU participates to the support of its neighbours and the Western Balkans through humanitarian aid, budget support, thematic programmes and technical assistance.