European solidarity is being put to the test as some EU member states are not supporting the idea of 'corona bonds' and the EU's approach to communicating with the public about the crisis remains too discreet, according to Paris. EURACTIV France reports.
Germany and the Netherlands will lead opposition to issuing joint bonds to help revive the European Union economy from a deep slump caused by the coronavirus when the bloc's national leaders discuss emergency assistance on Thursday (26 March).
Nine eurozone countries sent a letter on Wednesday (25 March) to the President of the EU Council, Charles Michel, asking for a common debt instrument to mitigate the damage caused by the coronavirus crisis.
Germany and The Netherlands, two of the most staunch opponents to the idea of issuing common debt in the eurozone, would be “open” to discuss eurobonds to mitigate the economic impact of the coronavirus COVID-19.
Giuseppe Conte, the Italian Prime Minister, urged EU leaders on Tuesday (17 March) to take extraordinary measures and consider issuing joint debt at EU level in order to help Europe's economy recover from the coronavirus crisis.
Financial representatives poured cold water on Thursday (24 May) on the European Commission’s proposal to create sovereign bond-backed securities (SBBS), insisting that not all the elements exist yet for a successful market for the product.
The European Commission has said that the zero-risk weight of its forthcoming sovereign bond-backed securities proposal will be a ‘game changer’, but member states and the financial sector remain sceptical about how the new asset could work in practice.
Germany's Finance Minister Wolfgang Schäuble said on Tuesday (23 May) that it is "unrealistic" to consider changing European treaties at this stage, calling instead for incremental steps by national governments to move EU integration forward in specific areas.
Spain's conservative government has added its voice to calls for deeper integration in the eurozone, suggesting to Brussels in a paper that members of the bloc should pool some aspects of their debt management and share a budget to fight crisis shocks.
Martin Schulz is known in Germany mainly as a European politician and an ally of Chancellor Angela Merkel. But later this year they will face off in the country's leadership race. EURACTIV’s partner Der Tagesspiegel reports.
Germany's Constitutional Court confirmed on Tuesday (17 May) it has received a complaint against the European Central Bank's monetary policy, as reported by the Welt am Sonntag newspaper at the weekend.
A common European Union policy to manage external borders and cope with the refugee crisis should be funded with common resources, including through the issuance of EU bonds, Italy said on Monday (22 February).
Eurozone countries have to find a way to deal with the high public debt built up during 2008-2012, and which puts European economies on divergent tracks, EU Economic and Monetary Affairs Commissioner Pierre Moscovici said on Wednesday (6 May).
Italy, which currently holds the rotating presidency of the European Union, is keen to re-launch debate on long-term "project bonds" to finance infrastructure projects, Finance Minister Pier Carlo Padoan told French business daily Les Echos.
Eur zone countries should consider clubbing together to borrow as well as paying into a central budget that could be used to help struggling countries, according to a report prepared by senior European officials ahead of the EU summit next week (18-19 October).
France is open to the idea of a new European Union treaty to deepen integration if it is deemed necessary for new "solidarity" mechanisms in the bloc such as debt mutualisation, said French Minister for European Affairs Bernard Cazeneuve.
France’s President François Hollande has insisted that the European Union needed more solidarity and a system for debt mutualisation, a position which fell foul of Germany’s insistence that this should only happen after countries agree to greater fiscal oversight from Brussels. EURACTIV France reports.