The European Commission has proposed creating an anti-crisis tool with a budget of 400 billion euros ($464.76 billion), financed through joint borrowing. This new budgetary instrument, which will be in effect from 2028 to 2034, will provide loans to countries to help them respond more quickly to adverse events, such as the pandemic or an energy crisis. However, it is controversial among EU member states because it pools liabilities to subsidize less financially efficient states.
Germany has particularly criticized the EU's $2 trillion budget for 2028–2034. As the Commission noted, some countries will find it difficult to accept the new mechanism. It was also announced that the fund will distribute money in the form of loans rather than grants. Financing will be provided through joint borrowing, but with strict mandatory control and the approval of all 27 EU member states.
The yield on the region's 10-year debt obligations rose to 3.17%, though it remains below the peak reached in early March. The proposed budget will undergo a complex approval process involving the European Parliament and the EU Council.