ESM loan OK for Italy-Gentiloni

(ANSA) - Brussels, June 1 - Taking out loans from the European Stability Mechanism (ESM) for the coronavirus crisis would be "particularly advantageous" for Italy, which gets much higher interest rates when if turns to the money markets, European Economic Affairs Commissioner Paolo Gentiloni said Monday.
    Loans from the EU's SURE employment scheme and the European Investment Bank (EIB) would be just as advantageous for countries like Italy who have to pay a high risk premium to the markets, he said.
    Gentiloni also mentioned the European Commission's proposed 750 billion euro virus Recovery Plan, 173 of which would be destined for Italy if negotiations between EU countries confirm it. Northern European countries are unhappy with the proportion of the fund proposed as grants, 500 billion, compared to the chunk in loans, 250 billion, and would like to see it all go in loans.
    Gentiloni acknowledged that negotiations would be "tough" but said that any corrections would only be "slight and not substantive". "The talks will be tough and we will have to respect the legitimacy of the various positions, but I'm fairly confident that the discussion will not undermine the architecture of the building," he said.
    He added: "it's too soon to say whether Italy is wasting the opportunity" of accessing the ESM.