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The €500 billion Franco-German recovery fund proposal is not about joint borrowing or euro bonds, German Chancellor Angela Merkel’s spokesman Steffen Seibert clarified at a news conference on Wednesday.

“There is also a binding repayment plan,” the spokesman added, as reported by Reuters. “It is distinctly different from joint borrowing.” 

Market reaction

The EUR/USD pair edged slightly lower after these comments but continue to trade in the positive territory. As of writing, the pair was up 0.32% on the day at 1.0955.