New eurozone ‘coronabonds’ body might take three years to set up, says Regling

A new mechanism to enable the issuance of joint eurozone debt to counter economic fallout from the coronavirus epidemic - as recommended by nine European leaders - could take up to three years to set up, the head of the bloc's bailout fund said.

However, common 'coronabonds' could in theory be issued immediately if the bloc's existing funding institutions were used, European Stability Mechanism (ESM) head Klaus Regling told the Financial Times.

France, Italy, Spain and six other countries called last week for work on a common debt instrument issued by a European institution to cushion the effects of the pandemic, which is on course to trigger a global recession.

Germany and the Netherlands strongly opposed such a mechanism and the nine who supported it did not specify how it would work. Leaders gave the bloc's finance ministers until April 9 to come up with...

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