Spain says EU recovery fund debt not charity – Metro US

Spanish Foreign Minister Arancha Gonzalez Laya reacts during an interview with Reuters at the Ministry of Foreign Affairs, Madrid

MADRID (Reuters) – Joint borrowing by European Union countries to fund a recovery fund after the economic crisis caused by the COVID-19 pandemic is not charity, Spain’s foreign minister said Arancha Gonzalez ahead of a crucial summit on the issue on July 17-18. .

All the countries concerned would contribute to repaying the debt, even the so-called “frugal” northern countries, she said in an interview with Belgian radio RTBF on Monday.

“It’s not like the Netherlands is giving charity to Spain or France,” Gonzalez said. Each country would take a share of the debt proportional to its economic weight, she said.

Germany would contribute 20%, Spain 9% and the Netherlands 6%, for example, Gonzalez said.

The 27 leaders of the European Union are due to meet later this week to negotiate the EU’s seven-year budget and the creation of a 750 billion euro ($849.45 billion) recovery fund financed by the EU. joint debt.

Two-thirds of the amount would be transferred in the form of free grants and one-third in the form of repayable loans.

The creation of this fund has pitted the wealthy and frugal north against the heavily indebted south, which has been hit harder by the pandemic.

($1 = 0.8829 euros)

(Reporting by Inti Landauro; Editing by Jason Neely and Alex Richardson)

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