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IPFS News Link • European Union

EU To Reveal Plan For "Potentially Massive" Joint Bond Sales To Fund Energy And Defense

•, by Tyler Durden

According to Bloomberg, the proposal will be taken up during the EU leaders' summit in Versailles, France, that's set to begin on Thursday. However, the bloc's leaders are still working out the details on how the debt sales would work and how much money they intend to raise. The money will be used to help strengthen the bloc's energy and military infrastructure. 

"We have to find new tools to address new issues this crisis raises in front of us," the EU's commissioner for the economy, Paolo Gentiloni, said Monday evening to lawmakers in Strasbourg, France. He added that he thought EU leaders would give political guidance on further moves at the summit.

A spokesman for the EU Commission declined to comment on specifics, but other sources told BBG that the plan right now is to model the new fund after the pandemic relief effort.

One option is to structure it like the bloc's SURE program, some of the officials said, referring to a scheme that was used to finance employment support initiatives in the aftermath of the pandemic, under which member states repaid soft loans provided by the commission.

The invasion has forced the bloc to rethink its energy strategy, as the various green agendas of European states have left them dependent on imports of gas and oil from Russia. Presently, more than 40% of EU gas imports and one quarter of its oil come from Russia. On Monday, Moscow threatened to cut gas supplies via the Nord Stream 1 pipeline. But as the EU transitions away from Russian gas, the real question is: what are the alternatives?

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