France is pushing for a common EU fund to help Europe through the coronavirus crisis, but is proposing that it be limited to five or 10 years and focused on economic recovery to head off German and Dutch objections to mutualising debt obligations.
“We are thinking about a fund which would be limited in time with an indebtedness possibility for the long-term response to the crisis,” French finance minister Bruno Le Maire told the Financial Times. “It’s absolutely crucial to keep the door open for long-term, broad instruments that would allow us to face a ‘postwar’ economic situation.”
Mr Le Maire said the idea of the fund, which would come on top of other multibillion-euro rescue packages offered or being negotiated by other EU and eurozone institutions, derived from President Emmanuel Macron’s proposal for common “coronabonds” or “eurobonds” that was supported by eight other euro area governments but rejected by others.