The European Union's idea of borrowing for joint purposes, such as recovery after a pandemic, could be used again by the Community if the scheme is successful. This was emphasized by the European Commissioner for Economy Paolo Gentiloni, Reuters reports.
In an unprecedented move to prevent economic fragmentation due to the COVID-19 pandemic, European Union countries agreed last year to jointly borrow 800 billion euros and spend it on rebuilding their economies.
Co-borrowing has been identified by many as a taboo violation. However, financial markets welcomed the decision with enthusiasm, sparking speculation as to whether a recovery fund called the Next Generation EU could be transformed into a more permanent agreement - something many northern European countries strongly oppose.
"Indeed, this was an exceptional decision," Gentiloni told the European Parliament's budget committee in Strasbourg during a hearing in response to a question from an MEP.
"But we must recognize the fact that it is intended as a one-off - it is in the legal acts. Does this mean that this type of methodology for raising common resources for a common goal can never be used again in the EU? "I don't think so," Gentiloni said.
Under the scheme, each of the 27 EU countries will receive grants and cheap loans to invest in reducing carbon emissions and making economies better suited to the digital age.
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