EU chief launches recovery fund in Lisbon, Madrid

European Commission chief Ursula von der Leyen visited Lisbon and Madrid Wednesday where she began approving recovery plans submitted by nations seeking funding from the bloc’s coronavirus recovery fund.

“This is a historic achievement,” Von der Leyen told the European Parliament last week in announcing the imminent activation of the landmark $ 910 billion recovery plan which was drawn up nearly a year ago.

Portugal, which currently holds the EU’s sixmonth rotating presidency, has made the rapid adoption of these recovery plans a priority following their recommendation by the Commission. And the government of Socialist Prime Minister Antonio Costa set a good precedent by being the first country to submit its own plan in April.

Spain is also a significant choice in that it has been the second- largest beneficiary of the rescue fund after Italy, with Madrid set to receive $ 170 billion.

“Two southern European countries that previously did not feel supported within Europe have now benefitted from the extraordinary support and generosity of their northern partners,” said Toni Roldan, head of research at the Esade Centre for Economic Policy in Madrid.

Spain was particularly hard hit when the pandemic first erupted in early 2020, while Portugal suffered a major surge in cases at the start of in 2021.

With both countries hugely dependent on tourism, their economies have been significantly affected.

Since the eurozone debt crisis which began in 2011, Lisbon and Madrid have often been in the firing line with Europe’s more “frugal” members frustrated at having to fork out money to subsidize spending in what they have seen as the somewhat less virtuous south.