Thursday, May 28, 2020

Ursula von der Leyen’s big gamble with borrowed money By DAVID M. HERSZENHORN AND LILI BAYER

It's Ursula von der Leyen's €750 billion bet: that economic damage from the coronavirus crisis is so devastating, EU countries will take a huge leap of faith and effectively sign up for a joint credit card.
By proposing a €750 billion recovery fund, using borrowed money to be repaid over 30 years, the European Commission president is wagering that national capitals will put aside any misgivings, and not only agree to the novel financing mechanism to get EU economies back on their feet, but also cut a fast deal on a €1.1 trillion, seven-year budget that will secure resources for her priorities, including fighting climate change and promoting digital transformation.

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