taking the last of my three adjectives. the economic policy response in this second phase of the crisis naturally, the economic policy response to this crisis should adapt to how the pandemic unfolds healthwise. at this second phase of the crisis, with the characteristics i mentioned, the economic policy response must combine two objectives : to support the recovery - which advises avoiding a premature withdrawal of the support measures that would raise the risk of economic growth undergoing more lasting damage - and to smooth the adjustment of the economy to the post - pandemic scenario. the importance of european support to achieve these objectives, the economic policy response in this second phase of the crisis should have the firmly resolute backing of the european union ( eu ). indeed, given the enormous economic and financial interactions across the area ’ s various economies, joint action is the most effective means of ensuring that the economic effects of the pandemic will be overcome in a shorter time and at a lower cost to each and every country. this is particularly important in the current situation, where we face a global crisis, but which is exerting asymmetrical economic effects on the different countries. european action is particularly important so as to avoid an uneven exit from the crisis that bears down on overall economic growth for a longer period. these arguments, beyond those relating to necessary european solidarity, highlight the importance of the agreement reached by the european council last tuesday with the approval of the european recovery fund. in fact, as you know, the result of the european council meeting some days back was, i would venture to say, most satisfactory. first, agreement was reached on the eu multiyear budget for 2021 - 2027, the negotiations for which had faced many difficulties in recent months, for an amount of €1, 074 billion. further, a recovery fund ( next generation eu ) has been created. this is additional to the budget and introduces a pan - european recovery financing framework that is unprecedented in the history of the eu. this fund will be financed by the european commission ’ s recourse, on behalf of the union, to the capital markets, for a maximum amount of €750 billion between 2021 and 2026, i. e. it is temporary in nature. the funds will be assigned to tackle the consequences of the covid - 19 crisis, both through loans to the member states ( 48 % of the total ) and through direct transfers ( essentially the remaining 52 % ). the gradual amortisation

of this debt will run to 2058, through new eu own resources. to swiftly mobilise the aid, which will take the form of investment project financing and structural reforms, in areas such as research, progress in digitalisation and combating climate change, the european commission will, before the european council ’ s october meeting, submit proposals on how to accelerate and smooth procedures in the member states. according to the draft agreement, the legal spending commitments attached to the projects included in next generation eu shall be made, at the latest, by 31 december 2023, and the related payments will have to be made effective, at the latest, by end - 2026. more specifically, 70 % of the transfers should be committed during the 2021 - 2022 two - year period, with a country - based distribution factor that depends on the unemployment rate in 2015 - 2019, population and the country ’ s per capita income. the remaining 30 % must be committed before end - 2023, and the distribution factor will be adapted to incorporate more directly the heterogeneous impact of the health crisis. thus, the unemployment rate will be replaced by a variable that will weight, in equal portions, the decline in gdp in 2020 and the cumulative decline in gdp in 2020 - 2021. in sum, the fund will enable, at least in part, a balance to be struck between the potential and real financial divergences among the european partners. this is because it will benefit from the positive externalities arising from joint action and it will serve to engineer a coordinated exit from the crisis, based on common budgetary instruments. the financing of the fund through community debt will benefit from the favourable low - interest - rate environment and will prevent this new debt being assumed by member states individually, under conditions which, in some cases, would be foreseeably more unfavourable than those which are expected to be applied to this pooled instrument. given the novel nature of the instrument, its amount and the difficulties in reaching agreements in the eu on such multi - faceted matters, i must say that the outcome is very satisfactory in terms of underscoring the shared will to move the european project forward. the challenge now is to convert these funds that will be made available to countries into a fiscal impulse that accompanies and steers the recovery effort needed in our productive system. in this connection it would be advisable to prioritise, in the short term, public investment projects in innovation, technological capital