ESM not enough after Germany verdict demands EC delivers recovery fund

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By Frank Jackman
12 May 2020

The European Stability Mechanism's (ESM) Pandemic Crisis Support programme may now be in place but what it has really shown up, especially in light of Germany's Federal Constitutional Court verdict on ECB QE last week, is that the eurozone badly needs the European Commission to pull its finger out and agree a recovery fund.

The Eurogroup agreed last Friday to the terms of the PCS, which allows all eurozone member states to borrow up to 2% of their GDP to finance healthcare, prevention and cure research costs related to the coronavirus pandemic.

A loan from the ESM will be cheaper than market ...

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