FRANKFURT, November 9 (Reuters) – The European Central Bank should act if it finds out governments are taking advantage of the ultra-low borrowing costs it helped create to avoid tapping into the European Union’s $ 750 billion Stimulus Fund, Yves said on Monday. Mersch, member of the board of directors of the ECB.
Concerns are growing that some countries will not accept EU loans, which come with certain conditions, as they can easily borrow in the markets at very low rates thanks to the ECB’s numerous bond purchases .
“In some countries we might not see a resumption of European possibilities, but (they) would instead rely on national debt issues which would then be bought back by the European Central Bank,” Mersch said in a statement. discussion on recovery. Funds.
“In my opinion, this would obviously require a reaction from the European Central Bank, which cannot be used to circumvent the measures that have been put in place at European level,” Mersch said. “We cannot give any guarantees to accommodate such an obvious circumvention.”
He added: “I encourage all Member States not to undermine this new approach to European solidarity by going back on what was so difficult to achieve.
The ECB set aside € 1.35 trillion for emergency bond purchases, which brought borrowing costs down to pre-crisis levels.
Mersch added that this was “part of an ongoing discussion” and that there had been no official “refusal” to take credit for the EU.
(Report by Balazs Koranyi edited by Francesco Canepa)
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