Addressing the difficulties highlighted by the war in Ukraine, EU leaders are meeting in Versailles today and tomorrow to come up with an action plan on how to save the European economy from an external shock.
Like during the COVID pandemic, member states are unequally affected by the negative economic consequences of the war. This is why analysts and politicians now urge the EU to react in a similar way as it did in the pandemic, when it provided grants to all EU member states depending on how hard they were hit by the pandemic, funded through common EU borrowing.
The European Commission is already preparing a proposal for an EU instrument funded through common borrowing. However, the completion of a second variant of Next Generation EU is not a priority for some member state governments who prefer to see other funds used first.