ECB's Schnabel warns against blocking the EU's recovery fund

ECB's Schnabel warns against blocking the EU's recovery fund


ECB's Schnabel warns against blocking the EU's recovery fund
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Reuters
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(Adds statement on hedge funds, detail)
BERLIN, April 9 (Reuters) - European Central Bank board member Isabel Schnabel has warned against attempts to block the European Union's Recovery Fund, saying such a step would be an "economic disaster for Europe".
The fact that the fund and national aid programs will lead to significantly growing national debt levels was not a problem provided the spending boosted sustainable economic growth, Schnabel told German magazine Der Spiegel.
"The increase in public debt is inevitable and sensible in the face of this crisis of the century, as long as the expenditures sustainably boost growth," she said in an interview published on Friday.

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