EU Commission proposes scrapping usual conditions for ESM use in virus battle

• The proposal may make the fund more palatable for Italy, which has always pushed back against conditionality in the use of the so-called European Stability Mechanism (ESM).
• So-called "enhanced surveillance" of countries taking credit lines will only ensure they use the funds for coronavirus-related health spending.

The proposal may make the fund more palatable for Italy, which has always pushed back against conditionality in the use of the so-called European Stability Mechanism (ESM).

Commission Vice President Valdis Dombrovskis and economic affairs chief Paolo Gentiloni said in a letter to Eurogroup head Mario Centeno that countries drawing on the fund would not face any macroeconomic adjustment programme.

So-called "enhanced surveillance" of countries taking credit lines will only ensure they use the funds for coronavirus-related health spending.

Once the money is spent and Brussels has checked it was used properly, the surveillance will end, the letter said.