Commission proposal boosts periphery but long way to go

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By Lewis McLellan
28 May 2020

The European Commission delivered its proposal for Next Generation EU on Wednesday, marking a sea change in the bloc’s relationship with the capital markets as it proposes truly shared borrowing to finance expenditure for the first time. The move could make the Commission the biggest supranational and agency borrower by some distance, Lewis McLellan reports.

The Commission’s proposal goes even further than the Franco-German suggestion for a recovery fund which emerged last week. The recovery fund offered €500bn of grants, but the Commission’s proposal adds €250bn of loans.

The precise nature of the proposed disbursements has not been determined. However, the majority of ...

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