May 28, 2022

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EU Commission working on proposal for joint borrowing to help finance Ukraine

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European Union flags fly outdoors the European Commission headquarters in Brussels, Belgium, March 6, 2019. REUTERS/Yves Herman

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BRUSSELS, May perhaps 10 (Reuters) – The European Fee is considering new joint personal debt issuance by the 27-country bloc, two EU officers reported, to deal with Ukraine’s liquidity hole of 15 billion euros ($15.9 billion) more than the next three months, however Germany is sceptical to the thought.

A Fee proposal is to be released on May 18, a single EU official mentioned. The new joint EU borrowing, if agreed, could be centered on the EU’s Absolutely sure scheme for financing unemployment rewards through the COVID-19 pandemic, officers claimed.

This would imply that Ukraine would get quite cheap loans from the bloc, and EU governments would want to give guarantees that the joint borrowing would be repaid.

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“It is a single of the designs under thought, but nothing has been made a decision but,” one senior EU official mentioned.

The EU expects that the United States would sign up for the work and give about 5 billion euros, which would leave the EU to raise some 10 billion euros by the joint borrowing, officers said.

The concept is to be mentioned at the Group of 7 finance ministers conference in Bonn on Could 18-20, officials explained.

But a German governing administration formal expressed scepticism toward any these proposal.

“We are looking for a G7 answer, but with no a joint borrowing in the EU. Current talks have been promising,” the formal reported.

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Supplemental reporting by Christain Kraemer in Berlin Reporting by Jan Strupczewski
Editing by Raissa Kasolowsky

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