Do European Commission ambitions signal a new, more sustainable direction of travel for the EU and globally?
By Paul Davies and Michael Green
On 27 May 2020, the European Commission (the Commission) announced a €750 billion stimulus fund aimed at helping the economies of the EU member states recover from the shock sustained as a result of the COVID-19 pandemic. Through this fund, officially titled Next Generation EU, the Commission hopes to “build back better”, through channels that contribute to a greener, more sustainable and resilient society. When combined with the proposed €1.1 trillion EU budget for the next seven years, the Commission’s wider recovery plan comes to a total of €1.85 trillion.
The plan follows the Commission’s Green Deal, which was announced in December 2019. The Green Deal was proposed as a framework of legislation from which the bloc could achieve its goal of net-zero greenhouse gas emissions by 2050. To decarbonise the economy, the Green Deal envisages government spending and public initiatives worth €100 billion per year, according to the Commission’s European Green Deal Investment Plan. Discussions surrounding the Green Deal had gained traction prior to the COVID-19 pandemic, as well as considerations on how best to tackle the social and economic issues raised by the transition to a carbon-free economy.