European Recovery Fund boosts EU growth by 1.5% and 4.1%

Standard & Poor's Global said today that the European Union's Coronavirus Recovery Fund of 750 billion euros will boost EU growth by between 1.5% and 4.1% over five years and support the credit ratings of some of the most indebted countries. "We view the plan at the European Union level as supportive of the creditworthiness of European governments, although the ability of national governments to implement structural reforms depends on resolving the economic imbalances that have been exacerbated by the epidemic," said economists at Standard & Poor's.

They added that their growth estimates of 1.5% and 4.1% relate respectively to low-impact and high-impact scenarios, and with the dismissal of the legal challenge by German skeptics of the European Union, EU officials expect the ratifications to be completed by June allowing the first payments to be made in July.