Saturday, October 24, 2020

Lagarde: Let's discuss permanent EU debt

On Monday Politico's Paola Tamma reported that ECB President Christine Lagarde discussed the possibility of making EU debt permanent, signaling a reversal of her previous stance that the coronavirus borrowing is "a one-off response to exceptional circumstances."

Speaking of the €750 billion debt-fueled response to the coronavirus crisis, which the European Commission is going to borrow on financial markets and disburse as grants and loans to EU countries, Lagarde said "this stimulus tool responds to an exceptional situation. We should discuss the possibility of it remaining in the European toolbox, so that it can be mobilized again in equivalent circumstances."

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