1. The nonsense of Next Generation EU net balance calculations
- Author:
- Zsolt Darvas
- Publication Date:
- 01-2021
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- The estimation of payments from the European Union’s COVID-19 economic recovery fund, Next Generation EU (NGEU), to each EU country in 2021-2026 involves uncertainties, yet the overall magnitudes can be estimated with a reasonable degree of precision. In contrast, estimating member states’ contributions to the repayment of EU debt (which will be issued to finance NGEU spending) is burdened with enormous difficulties, primarily related to the uncertainty of gross national income projections up to 2058. Some numerical scenarios can be put forward to illustrate the difficulties in estimating the amounts of such future contributions.
- Topic:
- Economics, Governance, European Union, Macroeconomics, and COVID-19
- Political Geography:
- Europe