EU proposes massive stimulus package

EU proposes massive stimulus package
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The European Commission unveiled a 750 billion euro ($826 billion) recovery stimulus plan to jump-start the economy of the euro zone.

The European Union executive arm's proposal would be funded by raising capital from financial markets which would then be made available as grants and loans to countries in the euro zone. 

A separate 100 billion euros ($109 billion) would be allocated for the short-term European unemployment reinsurance scheme to aid workers and businesses.

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The fund for Europe's recovery plan comes as the EU proposed to set its budget for 2021-27.

"This is Europe's moment. Our willingness to act must live up to the challenges we are all facing. With Next Generation EU we are providing an ambitious answer," European Commission President Ursula von der Leyen said in a statement.

Some countries in the EU like Spain and Italy have been hit hard by the coronavirus crisis and have called for financial assistance.

The proposal for a stimulus plan would have to be agreed to by EU members; some countries have expressed reluctance to raising so much debt.