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EU should not make its crisis recovery funds a permanent tool - German advisers

FILE PHOTO: Empty seats and tables are pictured on a street, while the spread of the coronavirus disease (COVID-19) continues in Leipzig, Germany, November 4, 2020. REUTERS/Annegret Hilse

BERLIN (Reuters) - The German government’s council of economic advisers said on Wednesday the European Union should not make its debt-financed 750 billion euro (666.85 billion pounds) recovery funds a permanent tool unless member states transfer fiscal sovereignty to Brussels.

The council also said the European Central Bank should end its Pandemic Emergency Purchase Programme (PEPP) as soon as the recovery was taking hold because otherwise it would lower the incentives for member states to use the EU’s crisis aid loans.

Reporting by Michael Nienaber; editing by Thomas Seythal

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