Spain Seeks 1.5 Trillion Euro Recovery Fund Using EU Perpetual Debt

The Spanish government will propose to its EU partners that they create a 1.5 trillion euro ($1.63 trillion) recovery fund financed through perpetual debt to aid countries worst-hit by the CCP (Chinese Communist Party) virus crisis, a discussion paper shows.

Prime Minister Pedro Sanchez will outline the proposal to his European colleagues during a summit on April 23, in a bid to lead the negotiations looking for an acceptable solution after the Netherlands and Germany ruled out common debt issuance, a foreign ministry source told Reuters.

The new fund proposed by Spain would be financed by perpetual debt backed by the EU budget, and countries would count it as transfers and not debt.

The Costa Deliziosa is docked at the port of Barcelona to disembark passengers amid a national lockdown to fight the spread of the CCP virus, in Barcelona, Spain, on April 20, 2020. (Pau Barrena /AFP via Getty Images)

Spanish chef Benito Gomez cooks food for people in need in Ronda, during a food distribution campaign amid a national lockdown to prevent the spread of the CCP virus in Ronda, Spain, on April 18, 2020. (Jorge Guerrero/AFP via Getty Images)

“It would be a different mutualization scheme than Read More – Source