A plan for joint borrowing may be presented as early as this week, when leaders of EU member states meet in an emergency meeting. The joint debt taken by EU member states would be a truly exceptional measure.
European the union plans to take on another massive joint debt as a result of the Russian invasion. News agency Bloombergin according to the purpose of the debt is to finance new energy and defense projects.
A plan for joint borrowing may be unveiled as early as this week, when EU leaders meet at an emergency meeting in Versailles, France, on 10 and 11 March, Bloomberg said of the preparation, citing informed sources.
The joint debt taken by EU member states would be a truly exceptional measure. It would only be done a year after the EU approved a giant financial package that had turned in the wake of the interest rate pandemic.
The EU has agreed to transfer money to member states for a total of around € 1,800 billion between 2021 and 2027. The recovery facility accounts for EUR 750 billion of transfers. Now, the EU will once again need a lot of extra money as it reorganizes its energy systems and defenses in response to Russia’s war of aggression in Ukraine.
“We need to find new tools to solve the problems caused by the crisis,” said EU Economic Commissioner Paolo Gentiloni on Monday.
Gentiloni believes EU policymakers are outlining further action this week.
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