The resolution calls on the European Commission to increase the size of the bloc's long-term budget — known as the multi-annual financial framework — as well as other European financial instruments, and create so-called recovery bonds guaranteed by the bloc's budget.
The resolution, adopted by Parliament on Friday, is not binding on the commission, the European Union's executive branch.
The recovery bonds should not involve existing debt being mutualized and should be used only for future investment to help alleviate the economic impact of the crisis, the resolution said. It added that the investment should make green initiatives and digital projects a priority.
Parliament also called on the commission to establish an EU coronavirus solidarity fund and a European unemployment reinsurance scheme to the value of €50 billion ($54 billion).
The European Parliament has a purely advisory role on fiscal matters. Budgetary decisions are negotiated among ministers from the governments of member states and many, including in the area of taxation, require unanimous agreement.
Finance ministers from across the EU met this month to agree on a package of aid worth €500 billion to help combat the pandemic. Under the deal, member states will be eligible for credit lines from the bloc's permanent bailout fund, the European Stability Mechanism, equal to at least 2% of a country's gross domestic product, up to €240 billion.
Finance ministers at the time said they would try to arrange access to the mechanism, known as the ESM, within two weeks to help all EU countries — not only those in the euro currency area — cover public health costs tied to the pandemic.
Countries remain divided over common debt issuances. Leaders in Belgium, France, Italy, Luxembourg, Spain, Portugal, Greece, Slovenia and Ireland signed a letter in March calling for the use of mutualized debt to share the burden among that part of the bloc that uses the Euro currency — known as the eurozone.
Ensuring that countries in weaker fiscal health, such as Italy, can leverage the good fiscal health of a country such as Germany could potentially offset the need for tougher austerity measures, such as raising value-added tax. Many observers are hoping to avoid a repeat of the EU debt crisis, in which countries adopted austerity measures as they tried to bring budgets back in line, although these measures helped push some economies into recessions.
There is stiff opposition to jointly issued debt, despite what some see as benefits. The Netherlands in particular has expressed opposition to the use of so-called Eurobonds for crisis-response financing, saying the move would undermine stability in the 19-nation eurozone and be out of step with EU and domestic laws.
Representatives of the European Parliament have been approached for comment.
--Additional reporting by Joseph Boris and Todd Buell. Editing by Ed Harris.
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