What EU Recovery Stimulus Means for Economic Output
(Bloomberg) -- The Next Generation European Union program -- 750 billion euros ($915 billion) in grants and loans aimed at kickstarting the recovery -- is poised to get underway, with Southern European countries due to receive the lion’s share. Italy has already proposed a very large stimulus package worth around 13% of annual gross domestic product to be spent by the end of 2026, while Spain has so far only requested the grants, but is still looking to spend about 5.5% of its GDP by the end of 2023. Bloomberg Economics estimates the program will deploy funding equivalent to almost 1% of euro area GDP every year from 2022 to 2024, with spending building up gradually from the second half of this year.
©2021 Bloomberg L.P.