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Controversy over corona bonds continues

2020-03-31T11:12:55.326Z


How does Europe come out of the economic crisis? The dispute over borrowing is in full swing. Now Italian politicians are choosing an unusual route.


How does Europe come out of the economic crisis? The dispute over borrowing is in full swing. Now Italian politicians are choosing an unusual route.

Brussels / Frankfurt (dpa) - In the bitter dispute over joint borrowing in Europe, Italian politicians turned directly to the Germans and asked for approval for corona bonds.

In a full-page advertisement in the "Frankfurter Allgemeine Zeitung" wrote that it was not about the communitization of public old debts, but about sufficient funds for a large European rescue plan.

The dispute over corona bonds is dividing the EU countries. Italy, Spain, France and other countries are vehemently demanding them, while Germany, the Netherlands, Austria and others are blocking themselves. Since the heads of state and government were unable to agree, the Eurogroup should now come up with new proposals. The chairman Mario Centeno has announced it for April 7th.

In a letter to the EU finance ministers, Centeno did not mention the corona bonds directly, but did show his stance: The EU states should examine existing instruments, but should also be open to new ones, according to the letter from the German press Agency is present. Different proposals should be considered in combination.

Options should be developed to use the ESM euro rescue fund and the European Investment Bank (EIB) for crisis relief, and one is open to new proposals from the EU Commission. "I am also willing to bring concrete, justified, effective suggestions to the discussion to strengthen our response," wrote Centeno.

European countries' debt will inevitably be much higher after the crisis. "The way we deal with this shared burden will be decisive for how we can contain the disease, but also how and to what extent we can recover and ultimately for the cohesion of the euro area."

In the newspaper ad, Italian MPs and mayors from various parties recall the 1953 London Debt Agreement, when 21 countries in Germany halved their debt and deferred the rest. Italy is still convinced of the correctness of this decision. At that time, Germany could avoid the state bankruptcy and experience solidarity.

The authors also sharply criticize the Netherlands, which like Germany opposes European community bonds. With its tax system, the Netherlands has been withdrawing revenue from its EU partners for years.

In the Netherlands itself there is now criticism of Prime Minister Mark Rutte's tough stance. The European Union must give generous help to particularly affected countries such as Italy and Spain, the group leader of the Christian ruling party ChristenUnie, Gert-Jan Segers, called and brought up a "Marshall Plan for Southern Europe".

The European Greens are promoting corona bonds as a temporary crisis measure. "Corona bonds are a kind of temporary Eurobonds and therefore easier to carry for countries that have not yet wanted Eurobonds," said the parliamentary group leader in the European Parliament, Ska Keller, of the dpa. "We urgently need a European response to the crisis." The reaction to the economic crisis will show how strongly Europe is holding together.

Source: merkur

All news articles on 2020-03-31

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