The European Commission proposes, in the context of the long-term EU budget for 2021-2027, a reform support program and a European investment-security instrument to deepen European economic and monetary union, the EU commission said.
According to the information, the proposals try to find a solution to some of the remaining challenges ahead of the full realization of the economic and monetary union and to demonstrate how the EU budget can be mobilized to support stability, convergence and cohesion in the euro area and across the EU.
It is proposed that the European Investment Facility will stabilize the level of public investment during major economic shocks and promote rapid economic recovery in the Member States of the euro area and in the Member States using the European Exchange Rate Mechanism (ERM II). If strict criteria for effective macroeconomic and fiscal policies are in place, it will be possible to mobilize loans up to € 30 billion, with interest subsidies covering the costs.
A total budget of € 25 billion of reform support will support all major EU Member States’ priority reforms to modernize the economy. The program consists of three elements. The Facility for Enforcing Reform (EUR 22 billion) provides financial support for reforms, providing and sharing technical assistance (EUR 0.84bn), and providing targeted support for the euro through the convergence aid instrument (EUR 2.16bn) Member States wishing to introduce them.
The latter will provide targeted financial and technical support to the Member States for which it is indisputable that they have taken steps to adopt the euro and have made a clear commitment to enter into the euro area within a reasonable period of time. The instrument does not modify the current conditions for joining the euro area, but provides practical support to the accession Member States for the successful introduction of the euro and for effective participation in the euro area.