The European Union is set to unveil this week its plan to jointly issue bonds, potentially on a large scale, to finance defense spending and energy costs in the wake of the Russian invasion of Ukraine.
The full package of proposals may be unveiled shortly after the emergency meeting of European leaders in Versailles on March 10th and 11th, according to officials familiar with the ongoing preparations.
???????? EU TO CONSIDER MASSIVE JOINT BOND SALES TO FUND ENERGY, DEFENSE – BBG
* The EU will unveil a plan as soon as this week to jointly issue bonds on a potentially massive scale to finance energy and defense spending in the 27 member states.– Christophe Barraud???? (@C_Barraud) March 8, 2022
EU officials are also working out details on how the debt sale process would work and how much money the EU intends to raise.
The unprecedented move comes just a year after the EU. had introduced an emergency package of 1.8 trillion. to finance the pandemic needs of Member States.
The Union is now facing huge funding needs as it begins to rebuild its defense and energy infrastructure before the Russian invasion of Ukraine.
“We must find new tools to deal with the new issues posed by this crisis,” the EU commissioner said on Monday. for the economy, Paolo Gentiloni speaking at the European Parliament in Strasbourg, adding that his assessment that the EU leaders will give political guidance for further moves at the summit.
A Commission spokesman declined to comment on the details, but said officials were continuing to monitor the situation and were prepared to respond to changing circumstances.
The plan will involve the European Commission, which will issue bonds and then channel the revenue to member states in the form of soft loans to finance government spending, according to a Bloomberg report citing officials who did not want to. to be named.
Daily with information from Bloomberg
Follow Skai.gr on Google News
and be the first to know all the news
