(Bloomberg) -- European Commission President Ursula von der Leyen said she is working on an “ambitious” plan to help economies recover from the effects of the coronavirus pandemic.
The recovery instrument proposal, that von der Leyen originally intended to publish last week, is still being revised by EU officials, with member states fighting over how it should be funded.
Von der Leyen told the European Parliament in Brussels Wednesday that the tool would sit alongside the bloc’s regular budget and be funded in part by the commission borrowing on financial markets.
“At a time of adversity, such as we’re facing now, Europe more than ever needs unity and ambition,” von der Leyen told lawmakers.
The plan, which will have to be endorsed by the parliament and national governments, would see most of the funds spent on public investments and reforms in the countries most deeply affected by the coronovirus lockdown. Von der Leyen stressed that funding would be given only for projects “aligned with European policy” such as on measures to fight climate change and boost digitalization.
The EU’s leaders and finance ministers have argued about whether funding will come in the way of loans to be paid back or in grants, with northern European countries such as the Netherlands and Germany worried about writing blank checks. Von der Leyen said her plan “”will include grants.”
“Let’s use this opportunity to forge a healthier economy,” she said.
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