MNI BRIEF:NGEU To Lift Growth Less Than Expected -ECB Bulletin
MNI (ROME) - Updated estimates on the impact of the EU’s NextGenerationEU programme “indicate a smaller impact on potential output over the period 2020 to 2030 than estimated in 2022”, the European Central Bank said in a paper on its Economic Bulletin
The estimated impact on eurozone potential output by 2024 is only 0.2% --rather than the expected 0.5%-- and the long-term impact of 1.3% is expected to materialise in 2033 instead of in 2030. The smaller impact “reflects the fact that the previously-anticipated effects of investments hardly materialised in 2022-2023, with 2024 being a transition year” and a pick up is expected from this year.
EU member states have already applied for EUR650 billion of the EUR724 billion from the RRF fund, with countries entitled to receive EUR532 billion. However, the ECB expects that a little less than EUR486 billion of the programme will be spent by the August 2026 deadline.