European Commission Vice President Valdis Dombrovskis said EU could finance a coronavirus recovery fund that is worth up to EUR 1.5T. He added that the recovery fund could be financed by bonds backed by guarantee from EU member states. But “nothing had been decided yet”.
He added that the Commission was open to all possibilities permitted by the EU Treaty of Lisbon, adding: “We’re not ruling out any option if the member states agree on it. As we all know, that doesn’t apply to eurobonds.”
“The simple fact that the Eurogroup has agreed on a coronavirus aid package makes it easier for very indebted member states to access the capital markets. No euro zone country currently has problems finding buyers for its government bonds,” he said.
