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Lagarde Backs €850bn EU Borrowing Plan, Merz Opposes

7/10/2026

Summary

Story summary

Economy Minister Carlos Cuerpo presented a €850 billion common borrowing proposal, which European Central Bank (ECB) President Christine Lagarde welcomed as merit-based.
ECB President Lagarde noted the EU’s €750 billion joint debt was oversubscribed, a sign that Cuerpo believes the new plan could save billions and cut fragmentation.
German Chancellor Friedrich Merz called additional joint borrowing a non-starter, while French President Emmanuel Macron said there should be no taboos on the idea.

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Story summary

Economy Minister Carlos Cuerpo presented a €850 billion common borrowing proposal, which European Central Bank (ECB) President Christine Lagarde welcomed as merit-based.
ECB President Lagarde noted the EU’s €750 billion joint debt was oversubscribed, a sign that Cuerpo believes the new plan could save billions and cut fragmentation.
German Chancellor Friedrich Merz called additional joint borrowing a non-starter, while French President Emmanuel Macron said there should be no taboos on the idea.