Europe’s spending weighed down by rates

The days of gratuitous debt are over“recalls Valérie Hayer, elected Renaissance, member of the Budgets Committee Lafargue Raphael/Lafargue Raphael/ABACA

DECRYPTION – To date, 6.5 billion euros in revenue per year are already secured, subject to the validation of the Council, while it will take 15 to 20 billion euros per year from 2028 to reimburse the Recovery plan.

The European Parliament is sounding the alarm on the finances of the Union. Meeting in plenary session in Strasbourg, it adopted on Wednesday by 356 votes against 199 a report recommending the adoption of new resources, in order to reimburse the debts contracted during the post-Covid recovery plan to 750 billion euros (Next Generation EU).

This unprecedented fund, born under the impetus of Emmanuel Macron and Angela Merkel, broke for the first time the taboo of debt pooling. The virtuous idea was to allow the most indebted States, such as Italy or Spain, to benefit from the very favorable borrowing conditions of the European Union, penalized by higher rates. Now behold, after the inflationary surgethe European Union is also caught up in the rise in interest rates.

It now borrows at higher costs than France. In the 2021-2027 multi-annual budget, 15 billion euros were planned to pay the debt burden, a sum calculated on a rate that…

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