23.07.2020 • NewsEuropean UnionDede WillamsPlasticsEurope

EU Passes Recovery Fund and Adds Plastic Tax

In a more than four-day marathon session, marked in part by acrimonious discussions, EU leaders passed both the planned €750 million coronavirus recovery package and a new €1.1 trillion seven-year budget in the early morning hours of July 21.

Although the envisioned sum for the recovery fund was left intact, the heads of EU member states agreed to a slight shift in distribution, as Austria, the Netherlands, Denmark and Sweden objected to distributing a more generous portion to grants without any repayment necessary.

Terms of the package now foresee €390 billion to be distributed as grants and €360 million as loans. Initially, the plan was to hand out €500 billion in grants and €250 billion in loans.

A provision of the new 2021-2027 budget is that 30% is to be spent on addressing climate change. Many of the projects are still just proposals, but – over fierce opposition from the plastics industry – state leaders nodded off on a plan discussed since 2010 to place a tax of €8 per tonne on single use non-recyclable plastic waste, for the most part packaging. Germany and France would bear the brunt.

Proceeds from the levy, to take effect at the beginning of 2021, would be funneled into the common budget. According to one estimate, this could add as much as €8 billion annually to the EU’s coffers.

In the run-up to the Brussels meeting, 48 European plastics industry associations, including PlasticsEurope and European Plastics Converters, signed a petition against the tax, arguing that “further fiscal measures are not the most efficient tool to drive innovation and investment.” Also, they said, there was “no guarantee” that the monies collected would be reinvested in better collection, sorting and recycling infrastructures.

The European Parliament must still approve the Council’s budget, but this probably will not happen without a fight. The MEPs have already expressed disappointment with the lack of attention paid to questions of public health, research, digitalization and youth, as well as the “historical” fight against climate change.

“Key programs to reach these objectives have been considerably shrunk and lost most of their top-ups,” the parliament said. It did not go into detail about specific grievances, though these are likely to be aired in coming weeks.

The more than four-day EU financial summit in Brussels ended early on Jul. 21...
The more than four-day EU financial summit in Brussels ended early on Jul. 21 with a compromise on a €750 billion coronavirus recovery fund and a €1 trillion seven-year budget. Some 30% of the budget, including a tax on non-recyclable packaging, will go to climate projects. Copyright: European Union

Free Expert Insights

Dual‑Targeting Breakthroughs
Advancements in Bispecific Antibody Development

Dual‑Targeting Breakthroughs

Unlock the latest breakthroughs in bispecific antibody development! Download Wiley’s free Expert Insights eBook to explore cutting-edge dual-targeting strategies, advanced purification methods, and bioanalytical technologies transforming immunotherapy and cancer treatment.

Interview

Stability in Motion
Strategic Response to a Shifting Pharma Landscape

Stability in Motion

Stefan Oelrich, Member of the Board of Management and President Pharmaceuticals, Bayer, discusses navigating external volatility, reshaping its internal structures, and investing in future-ready capabilities to ensure sustainable growth.

most read

Photo
28.07.2025 • NewsChemistry

VCI Welcomes US-EU Customs Deal

The German Chemical Industry Association (VCI) welcomes the fact that Ursula von der Leyen, President of the European Commission, and US President Donald Trump have averted the danger of a trade war for the time being.