Berlin says it does not want to openly debate a new SURE mechanism just now, but also doesn’t rule it out.
The German government stressed Tuesday that it is not willing to
discuss fresh EU debt via loans "at present" — but it left open the door
to potentially endorsing such a plan later.
Bloomberg reported
Monday that German Chancellor Olaf Scholz "will support joint issuance
of European Union debt" to tackle the fallout from the energy crisis, as
long as the money is issued as loans and not grants.
Two officials also told POLITICO that in response to widespread criticism
of Germany’s €200 billion gas price relief package, the chancellor had
indicated that EU loans could be an option to support partner countries
that might struggle to set up similar support measures for their
economies. Such a solidarity mechanism could be based on the SURE
program that the EU set up as a first response to the coronavirus crisis
in 2020 and which is based on loans that are underpinned by a system of
voluntary guarantees from EU countries.
Crucially, Germany's fiscally conservative Finance Minister Christian
Lindner does not rule out such a plan — although he said he does not
believe this is the right moment for it...
more at POLITICO
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