France backs Spanish EU recovery fund plan in principle - presidential adviser

France backs a Spanish proposal for a "recovery fund" for the European Union in principle, a French presidential adviser said on Wednesday, adding that the terms can be discussed but it should have long debt maturities. Speaking ahead of a video meeting of EU leaders, the adviser said the proposed fund should not only issue loans but also make transfers to increase solidarity between member states.

A face-to-face meeting of EU leaders, possibly before the summer, would be necessary to give it the go-ahead, the official said. Spain has proposed the creation of a fund of up to 1.5 trillion euros ($1.63 trillion) financed by perpetual debt.