Dutch PM prefers a "gift" to a loan for European coronavirus support (Reuters)


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Dutch PM prefers a "gift" to a loan for European coronavirus support (Reuters)
Dutch PM prefers a "gift" to a loan for European coronavirus support (Reuters)
Last Modified: 03:57 PM, Wed Apr 01, 2020
01 April 2020

Word Count: 187

AMSTERDAM (Reuters) - Dutch Prime Minister Mark Rutte on Wednesday said he would prefer to make a "gift" to European countries in financial distress as a result of the coronavirus outbreak rather than issue joint bonds or tap the Eureopean Union's bailout fund.


In a debate in the Dutch parliament, Rutte said he hoped to repair diplomatic ties with Italy and Spain after drawing criticism for a perceived lack of empathy during EU crisis conversations last week.  Rutte repeated that the Netherlands opposed the idea of "coronabonds" as a form of debt-sharing among EU members in response to the crisis. He said he would also prefer setting up a new support fund rather than having countries use the European Stability Mechanism (ESM).  "If you do (support) from the ESM, then it's a loan and a loan must be paid back," he said. "If you do it as a gift, then it's: 'Listen, you guys have been hit hard, but together with a number of wealthier countries, we're prepared to bear the direct costs of the coronavirus crisis'."

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Creditline: Reuters
Slugline: HEALTH-CORNAVIRUS/NETHERLANDS-EUROPE (PIX)


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