EC vows €100bn for jobless, but still no coronabonds

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By Jean Comte, Lewis McLellan
02 Apr 2020

Those pleading for a shared EU-level fiscal response to the economic damage of the coronavirus outbreak were thrown a bone on Thursday when Ursula von der Leyen, president of the European Commission, promised a €100bn unemployment fund backed by €25bn from EU member states. But her silence on the prospect of further debt mutualisation spoke volumes to market participants.

Von der Leyen announced the proposal in a press conference on Thursday, and in an article published in Italian newspaper La Repubblica.

However, the absence of any mention of coronabonds, or other debt mutualisation efforts, has been taken by economists as a sign that such measures appear unlikely.

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