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Corona Bonds

  • 04 Apr 2020
  • 1 min read

Why in News

Recently, the Italian Prime Minister has proposed Corona bonds to be issued by European Union (EU) to deal with the situation created by Covid-19.

Key Points

  • Corona bonds are joint debt issued to member states of the EU.
  • This would be mutualised debt, taken collectively by all member states of the EU.
  • The funds would come from the European Investment Bank.
  • Countries like Italy, Spain which have suffered huge deaths due to Covid-19 are demanding such kind of economic measures from the EU to meet the extraordinary situation.
  • However, Germany, Netherlands, Austria and Finland, also known as the "Frugal Four", the fiscally conservative EU states have opposed such type of idea.

Source: IE

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