Corona Bonds | 04 Apr 2020
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.