Welcome to our exchanges at Goldman Sachs Markets Update for Friday, July 24th.

Each week we check him with a leader across the firm to get a quick take on what they're watching in the

markets. I'm Jake Seabert, Global Head of Corporate Communications here at the firm, and my

guest today is Jose Manuel Barroso, Chairman of Goldman Sachs International.

We'll be talking about Europe and the huge stimulus package

that was just agreed upon in the meetings over there.

Welcome Jose.

It's a pleasure. So let's start with the basics. This

week the EU struck a what's truly historic stimulus package agreement. What are

the key provisions of this package? What are they aiming to do?

No, I think it's really a very ambitious and significant decision.

Basically there are two elements there.

It's what they call next generation European Union.

It's a recovery fund specifically targeting the pandemic, the COVID, but it was

linked with the multi annual budgets, what in Europe they called the multi-financial framework, it's a seven years budget, and so the conditions for this plan have to be linked with conditions for the overall budget for the seven years.

So the specific recovery plan, it's 750 billion euros

and the budget for the seven-year period is 1.82 trillion euros so altogether

it that makes more than 2.1 trillion U.S. dollars.

So it's really ambitious, and I think it combines the need to act now

as a response to the COVID crisis

with a more, let's say, medium-term perspective. It's very important to note that of these 750 billion euros,

390 will be through grants, the rest will be loans. Grants so transfers, let's be honest, we are not

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