EU coronavirus recovery plan is 'starting point' for talks, Austria says

The European Commission's plan to issue 750 billion euros in grants and loans to help EU countries recover from their coronavirus slump is "the starting point for negotiations", Austria said on Wednesday, repeating a preference for loans.

Of the 750 billion euros ($825 billion), two-thirds would be in grants financed by joint borrowing and one-third in loans. Austria, Denmark, the Netherlands and Sweden - jointly known as the "frugal four" - have suggested a fund that would only issue loans rather than grants.

"There are countries that must pay (under the plan), like the Netherlands, the Swedes, the Danes and us. We therefore, out of responsibility to our taxpayers, say clearly that we are in favour of loans," Austrian Chancellor Sebastian Kurz said in a statement, adding that the amount and proportion of loans and grants must still be negotiated. ($1 = 0.9095 euros)