Christine Lagarde has welcomed the Spanish government's proposal for joint borrowing, telling Euronews it marks the start of a discussion based on merit rather than "over my dead body" positions, as tough talks on the next European budget get underway.
"It's great that a country like Spain, for instance, makes a proposal and puts it on the table for debate. Now it's for the others to say, 'this part we like, this part we don't like', and how that can be addressed. I think it's good to move forward," she told Euronews.
On Thursday, Spanish Economy Minister Carlos Cuerpo presented a proposal for common borrowing worth €850 billion a year to his counterparts.
In separate comments to Euronews, Cuerpo said the plan could save billions in funding costs and reduce fragmentation. He said he hoped the proposal would kick-start a technical debate.
For decades, European policymakers have considered a permanent instrument that would allow the EU to issue supranational debt backed by all member states to fund common priorities.
