The EU’s recovery funds should be released when Europe’s economies can reopen

The Covid-19 vaccine rollout in some EU member states may interact with the effective use of grants and soft loans from the EU’s 672.5 billion euro pandemic recovery fund. Renato Giacon and Corrado Macchiarelli write that with national spending plans for the recovery fund still awaiting approval, the next challenge for policy-makers will be to ensure that funds are released as economies reopen. Special attention will need to be paid to Central and Eastern Europe, where some countries are lagging behind in their vaccine rollout and preparation for their use of the recovery funds. This is likely to be an important test for the EU’s institutions and will help determine the stability of the European project.