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Spain and EU Commissioners call for common European debt instruments: newspaper

FRANKFURT Europe needs personal debt mutualisation and a common Marshall plan to cure the coronavirus pandemic, Spanish Prime Minister Pedro Sanchez told German newspaper Frankfurter Allgemeine Zeitung.

EU leaders have got tasked policymakers with obtaining a new way to finance a recovery from the COVID-19 outbreak, after Germany as well as the Netherlands eliminated calls via France, Italy, Spain to create a common debt instrument.

Germany, among various other nations, is definitely opposed to providing common financial debt with other European nations, quarrelling that it would likely stop individual countries via pursuing structural reforms and even balancing their very own budgets.

Sanchez echoed the remarks involving European Commission President Ursula von jeder Leyen who also on Thursday called for a fresh EU funds in the form of a good “Marshall Plan” to help drive Europe’s recovery from the coronavirus crisis.

The Marshall Plan was an aid programme initiated by the United States in 1948 to help countries in Western Europe recover after World War Two.

In the medium term, Europe needs a “new mechanism for debt mutualisation”, Sanchez also told the newspaper. “If the virus will not stop at sides, then loans mechanisms simply cannot do so both, ” he said.

Separately, the European Union’s Internal Market Commissioner Thierry Breton, and European Economics Commissioner Paolo Gentiloni, told Frankfurter Allgemeine Zeitung that Europe needed to create a European taxpayer fund which could then issue long-term bonds to pay for a recovery from the pandemic.