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MNI BRIEF: Fiscal Board Calls For Central EU Fiscal Capacity

(MNI) Brussels

The European Fiscal Board has called for a central fiscal capacity to tackle large scale but temporary shocks to the EU economy.
In its Annual Report today, the EFB said that member states could draw on contributions made to the fund in good times, and, if these are insufficient, could also access conditional loans from the CFC, backed by other states’ contributions or by debt issuance.
An independent body of experts would assess access to any loans, which would also impose conditionality on borrowers.
The idea of a CFC has been proposed in the past, though it was superseded during the Covid pandemic with the creation of the NextGenerationEU programme. Economy Commissioner Paolo Gentiloni has also spoken in favour of the idea. (See MNI: Crisis Seen Weakening German Resolve Against Eurobonds)

MNI Brussels Bureau | david.thomas.ext@marketnews.com
MNI Brussels Bureau | david.thomas.ext@marketnews.com

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