BRUSSELS, MAY 10 (ANSA) — The European Union’s executive branch is considering re-exporting debt securities to finance the rebuilding of Ukraine after the war against Russia.
According to sources in Brussels, this fund could be presented on May 18 and have an estimated budget of 15 billion euros.
EU Enlargement Member Olivér Várhelyi did not reject or confirm this hypothesis on the matter.
“We’re looking at all options,” Hungarian said. However, some countries, such as Germany and Austria, are asking the European Commission to offer alternatives.
The bloc’s executive branch issued the first community debt bonds in October 2020 as part of its project to finance the post-pandemic recovery of member states’ economies.
This measure represented a historic advance in the process of European integration, but was designed only for the crisis caused by Covid-19. Countries with greater fiscal rigor, such as Austria and the Netherlands, have already shown their opposition to expanding this instrument.
With the issuance of debt securities of the European Commission, the bloc, which is protected by a strong and common budget, individually obtains lower interest rates than each other, so member countries with high deficits or debts can access money more cheaply in the market.
Ukraine has already applied for European Union membership, and Brussels has promised to present an opinion by next June.
source: Noticias
