Mr. Matthew McGann:

I can give an overview but my colleagues in the Commission might be better placed to do so. Essentially, the EU borrows the money on capital markets and on lending to member states, it provides a different source of funding for member states. For high-debt members which face higher levels of borrowing costs, the EU can borrow more cheaply than they can. It provides them with a lower-cost source of funding for the purposes of the spending under the regulation.