2023-06-02 05:46:00
The interest for the Corona recovery fund will be twice as expensive as the commission had expected. By 2027 they will account for a good 30 billion euros and compete with programs such as Erasmus, warns the Bruegel think tank.
The turnaround in interest rates European Central Bank (ECB) last year presented the Union with a problem that has so far hardly been discussed, but which has serious consequences. Because the central bankers in Frankfurt are quickly raising the key interest rate in response to the rapidly rising global inflation, the repayment of the Corona reconstruction fund will be delayed EU much more expensive than expected when it was founded in spring 2020.
In a new study, the think tank Bruegel calculates that the interest rates for around 421 billion euros in bonds, which the European Commission to be issued by 2026 to finance the recovery fund will most likely amount to EUR 30 billion. That would be double what the Commission assumed three years ago. If the general interest level rises even more sharply, interest rates could even rise to over EUR 49 billion.
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