Pedro Sánchez backs creation of great recovery fund of 1.5 trillion euros

Moncloa Palace, Madrid

Pedro Sánchez backed the creation of a great Recovery Fund of up to 1.5 trillion euros in line with the scale of the economic and social crisis caused by the pandemic. In this regard, he proposes that the fund should be financed with perpetual debt, tied to an ambitious Multiannual Financial Framework (MFF) and guaranteed by European Union funds.

The President of the Government backed this Fund providing non-refundable transfers to the countries hardest hit by the crisis, as well as the sectors hardest hit such as tourism and transport. He also argued that this Fund must boost the strategic priorities of the European Union, such as the ecological and digital transition, and industrial and technological autonomy. Pedro Sánchez explained that Spain supports these transfers to avoid some countries becoming over-indebted with an asymmetrical exit from the crisis which would harm the internal market.

The President of the Government called for a new UE Budget that maintains the cohesion and CAP provisions, while pushing through new priorities, such as support for research, migratory policy and strengthening public health systems.

Lastly, he called for the implementation of the Eurogroup agreements so that the triple safety net agreed to tackle the immediate consequences of the pandemic would be available on 1 June.

"We are faced with a common interest", said the President of the Government. "We need to get out of this together, through solidarity and unity. What is really at stake is how Europe will be after COVID-19".

The EU-27 will continue to hold periodic meetings while the crisis lasts.

Non official translation