EU Will Propose 750 Billion-Euro Fiscal Stimulus Package
(Bloomberg) -- The European Union’s executive arm will propose a fiscal stimulus package of 750 billion euros ($823 billion), of which 500 billion euros will be distributed in the form of grants to member states, and 250 billion euros in loans, a person familiar with the matter says, declining to be named, in line with policy.
The package will be partly funded via joint debt issuance.
Italian bonds rallied, with 10-year yields falling eight basis points to 1.47%, the lowest level in almost two months, while German securities erased gains. The euro snapped losses on the proposal, and was at $1.0979 as of 10.30 a.m. in London.
(Updates with market reaction in the third paragraph.)
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