The European Commission’s proposed 750 billion euro ($853.35 billion) coronavirus recovery fund for EU member states implies an unexpectedly generous package for countries in central and eastern Europe that could significantly benefit their economies.
The CEE region accounts for around 11% of the 27-member European Union’s gross domestic product but has been provisionally allocated 187 billion euros, or 25%, of the ‘Next Generation EU’ plan’s money.
The recovery fund proposal is currently split between 500 billion euros of loans and 250 billion of ‘grants’. The money is intended for projects spanning 2021-2024, though absorption could be allowed to leak into 2025-2026 as well. That has rankled with Hungary’s Prime Minister Viktor Orban, whose criticisms of Brussels and clampdowns on academics, media freedom and civil society have long been a thorn in the EU’s side.
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