Eurogroup shelves ‘corona bonds’ in favour of ESM credit lines

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By Lewis McLellan, Tyler Davies
25 Mar 2020

The Eurogroup made no progress towards creating a common EU debt instrument on Tuesday night, but member states will be able to fund their responses to the coronavirus crisis through a new credit line with the European Stability Mechanism.

There had been some excitement in the market around “corona bonds”, after Germany appeared to soften its stance towards the proposals last week.  ECB president Christine Lagarde has offered her support for the idea.

The idea would be for the ESM or the European Investment Bank to ...

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