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EC unveils NGEU funding strategy

Details of how the European Commission plans to fund the NextGenerationEU (NGEU) plan were unveiled on Wednesday as it looks to kick-start the region s recovery from Covid-19. The Commission, through the European Union, said it will raise up to around €800bn through to the end of 2026 with an average of about €150bn a year. All borrowing is expected to be repaid by 2058. NextGenerationEU is a game-changer for European capital markets, Johannes Hahn, European Commissioner in charge of budget and administration, said in a statement. Today, we are unveiling the engine that will pump the fuel to power NextGenerationEU. The funding strategy will operationalise the NextGenerationEU borrowing, so we will have all necessary tools in place to kick-start the social and economic recovery and promote our green, digital and resilient growth. The message is clear: as soon as the Commission has been legally enabled to borrow, we are ready to get going.

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