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EU Considers Loans in Return for Economy Overhauls

The European Union is considering whether it could encourage countries to make long-term economic changes by offering them loans at below-market rates, an EU official told reporters in Brussels today.

The idea is to spur reform in areas like labor policy, vocational training or the judicial system, the official said on condition of anonymity because the proposal is still in early planning stages. The loans could be most attractive to smaller countries that don’t have reliable market access, while bigger nations might benefit from looser budget targets in exchange for reform commitments.