After today’s NextGenerationEU announcement I did a back of envelop calculation to contrast the already announced, and proposed stimulus, with the European outlay during 2008. The data shows that European Union 2020 coronacrisis stimulus is twice that it provided in 2008. Infact, it equals the entire global stimulus during 2008 Global Financial Crisis. Still too early to arrive at implications of this huge outlay.
Pandemic Emergency Purchase Program has envelope of €750 billion to buy government and corporate bonds. Complements big bank stimulus package. Eases collateral standards and removes self imposed restrictions on purchases. Next Generation EU of €750 billion as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the total financial firepower of the EU budget to €1.85 trillion.This is near equal to the $2,000 billion stimulus provided across the world during the 2008 global financial crisis.