Economics
Europe’s Next Big Rescue Idea: Public Stakes in Small Firms
- European Commission sees 720 billion euros of solvency needs
- Bank of England suggests equity may be better than more loans
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European policy makers who frantically assembled plans to help their economies weather the coronavirus lockdowns are starting to focus on how to prevent cascading bankruptcies that could derail the rebound.
The next big idea gaining traction among officials and economists is potentially taking stakes in small and medium-sized businesses, in contrast to early efforts that relied heavily on loans to keep corporations afloat.