Germany Backs Joint EU Debt for Loans to Ease Energy Crisis
- Scholz supports borrowing as long as money paid out as loans
- Pandemic-era SURE program could be blueprint for energy crisis
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Chancellor Olaf Scholz will reverse a steadfast German position and support joint issuance of European Union debt to cushion the blow of the energy crisis as long as the freshly raised money is disbursed to struggling member states as loans, not grants.
Scholz signaled openness to use common borrowing on the sidelines of an EU summit in Prague last week, according to people familiar with the chancellor’s stance. The change in position follows criticism from other leaders that Germany’s €200 billion ($194 billion) national aid plan could trigger economic imbalances in the bloc.