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In the course of measures taken by the EU, but also only planned, against the economic crisis, the terms that are not yet known by the general public continue to fall. The KURIER explains its meaning.
Recovery Fund
It is the basis for economic reconstruction. The economic recovery fund was decided two weeks ago. The form of financing is open: either through joint bonds or the EU budget.
Bonds
is the English term for bonds. As a general rule, these are fixed interest securities with a specific term. A distinction must be made between government and corporate bonds.
Ratings are issued by rating agencies. This rating depends on the financial strength of a company or state. The worse the rating, the higher the interest that the company or the state has to pay to the lenders.
Eurobonds
They were first discussed in the 2010 euro crisis. Countries with very low ratings like Greece should benefit from the best ratings from countries like Austria or Germany. The issuance of common euro public bonds should make the interest rate more manageable for highly indebted euro countries. Together they would be responsible for interest and repayment. However, the idea could not prevail due to the resistance of the more affluent countries.
Crown bonds
they are structurally equal to euro bonds. The only difference: money should only be used to combat the virus and the economic consequences of the pandemic.
ESM
stands for European Stability Mechanism. This came into play as an alternative to common ties and actually came true in 2012. The ESM is an organization based in Luxembourg and the centerpiece of the euro rescue fund. Greece, Cyprus, Spain and Portugal have already received loans from it.
Currently, around 410 of the initial € 700 billion are still available, and € 240 billion has already been removed from the first Corona package. Austria is financing around 2.77 percent of the total (€ 19.5 billion).
BEI
is the European Investment Bank. It provides loans to small and medium-sized companies amounting to € 200 billion.
SURE
(Support to mitigate unemployment risks in emergencies) It is a € 100 billion program for EU countries to support labor market measures, especially short-term work, in the form of cheap EU loans.
PEPP
(Pandemic Emergency Purchase Program) is an emergency program of the European Central Bank (ECB) with a volume of 750 billion euros for the purchase of government and corporate bonds by the end of the year. The ECB started buying bonds during the euro crisis. To date, these purchases have reached a volume of 2.6 billion euros. (clover)
