Reuters reports, citing an EU official on the matter
The official says that there is a 'big divide' between member states on whether the coronavirus recovery fund should award grants or loans.
This relates to the proposal from Spain for a €1.5 trillion coronavirus recovery fund that will be financed through perpetual EU debt. This is essentially one of the potential workarounds on the coronabonds issue but it appears to be running into some trouble as well.
Spain made it clear yesterday that it is necessary for the fund to award grants - not loans - in order to prevent unfair competition from member states in a better financial position.
The official cited also says that there is a "misunderstanding" right now that the South are wanting to use the coronavirus crisis to burden the North with old debt.
Adding that more clarity about this recovery fund could only become clear in June/July but even that would still not likely be the final decision.
Yada, yada. More political infighting once again, leading to more can-kicking.
