THE FRUGAL FOUR’S POSITION ON THE RECOVERY FUND

Austria, the Netherlands, Denmark and Sweden reject any instruments or measures leading to debt mutualization and any significant increase in the EU budget and propose a “loans for loans” approach in which the borrowed funds would be distributed as short-term loans, on favorable terms but on the basis of a “thorough needs assessment” and accompanied by “strong commitments” by the recipients to “reforms and the fiscal framework,” to support activities that would contribute to the recovery such as research and innovation, enhanced resilience in the health sector, and activities supporting the