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NextGenerationEU, Gentiloni: «In 2026 it will push European GDP by 1.4%»

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NextGenerationEU, Gentiloni: «In 2026 it will push European GDP by 1.4%»

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FROM OUR CORRESPONDENT

BRUSSELS – In a long-awaited report that takes stock of the NextGenerationEU program born in the wake of the pandemic in 2020, the European Commission said on Wednesday 21 February it was optimistic about the future of growth in the European Union, thanks to the innovative community financing plan. Both Vice President Valdis Dombrovskis and Commissioner for Economic Affairs Paolo Gentiloni opened the door to new joint tools in the field of defense.

“Modeling from the UK-based National Institute for Economic and Social Research (NIESR) indicates that the European Union’s gross domestic product was 0.4% higher in 2022 than it would have been in absence of the spending program”, explained Commissioner Gentiloni. “Looking ahead, European Commission simulations estimate that NextGenerationEU could increase real GDP by 1.4% in 2026, compared to a scenario without NGEU.”

The stance comes as doubts and skepticism are emerging from many quarters about the real impact of an economic program worth around 750 billion euros. In his speech, the former prime minister wanted to clarify that the Commission’s estimate is net of the positive impact of the reforms envisaged by NextGenerationEU itself. Beyond the economic aspects, the program was particularly innovative because it is based on funds borrowed by the community executive on the markets.

Asked at a press conference about the possibility of repeating the initiative to meet European needs in defense and security, in the wake of the Russian war in Ukraine, the vice president of the European Commission Valdis Dombrovskis was optimistic: “The defense issue is at the top to the agenda. We will have to work on this front in the future, also at a European level.” Commissioner Gentiloni urged the political class to reflect on “possible new joint financial instruments”.

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