EU Proposes Joint Borrowing to Finance €400 Billion Crisis Tool

The €400 billion ($463 billion) crisis tool proposed by the European Commission on Wednesday would be financed using joint borrowing, according to people familiar with the matter.

The European Union’s executive branch’s new budget instrument for the period 2028-2034 would provide loans to countries so they can react faster to adverse events, said the people, speaking on the condition on anonymity. Brussels told member states that it would borrow money on their behalf to raise money for the instrument, they said.