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.
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