French Economy Minister Bruno Le Maire. (photo: Francois Mori / POOL / AFP)

THE France will propose the creation of a European rescue fund to respond to the economic crisis of the coronavirus, financed with common debt and lasting between five and ten years, Economy Minister Bruno Le Maire told the Financial Times.

“We are reflecting on a fund that would be limited in time, with the possibility of taking loans as a long-term response to the crisis,” the French minister told the economic newspaper.

“One solution could be to have a fund for five or ten years, with a limited term, with the possibility of having a common debt, but only with that fund. This may be acceptable to other countries,” he added.

Last week, nine European countries, including France and Italy, called for the creation of 'coronabonds', a debt system mutualized.

This proposal did not please Germany, which rejects the idea of ​​mutualizing the debt of eurozone countries, but which said it was “prepared” to “mobilize European solidarity”.

According to a French official quoted by the Financial Times, the fund proposed by France could “supplement” the EU budget and be managed by the European Commission, as well as the European Stability Mechanism (ESM).

The MEE has a capacity of 410 billion euros and can provide loans to states that need it, but which include precise conditions, such as labor market reform or meeting budget targets.


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